Proposal to Amend the Specific Financial Information Act to Grant Transaction Suspension Authority for Suspected Criminal Virtual Asset Addresses

A proposal to amend the Specific Financial Information Act has been submitted to grant the Financial Intelligence Unit (FIU) the authority to request the suspension of transactions for virtual asset addresses suspected of being used in serious crimes that infringe on public welfare. On the 30th, 11 members, including Democratic Party lawmaker Park Min-kyu, submitted this amendment. The bill defines serious crimes that infringe on public welfare as including illegal private financing, drug trafficking, gambling, new types of phishing using telecommunications, and financing of terrorism. It allows investigative agencies to request financial companies to temporarily suspend transactions for accounts or addresses suspected of being used in these crimes for seven days. If the head of the FIU recognizes the necessity, this can be extended for up to 60 days, and the FIU head can request transaction suspensions for up to 180 days for accounts and addresses related to crimes. The amendment explains that crimes infringing on public welfare, such as drug distribution and illegal online gambling, continue to persist and that these crimes are evolving into sophisticated crimes utilizing digital technologies. It emphasizes the need for rapid transaction suspensions to prevent the concealment of criminal proceeds and to quickly recover victim funds.

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