Financial Services Commission Vice Chairman Kwon Dae-young speaks during a meeting held to discuss responses to evolving phishing scams at Government Complex Seoul, Thurday. Courtesy of FSC
Korea is stepping up its fight against financial scams by allowing banks to swiftly freeze accounts tied not only to voice phishing, but also to newer forms of fraud such as romance and investment scams that had previously fallen into regulatory gray areas, government officials said Thursday.
The Financial Services Commission (FSC), the country's top financial regulator, said it will introduce new guidelines in June that enable closer cooperation between financial firms and law enforcement agencies to quickly suspend accounts suspected of involvement in emerging scam schemes.
The measures were discussed at a meeting chaired by FSC Vice Chairman Kwon Dae-young and attended by officials from the Korean National Police Agency, Korea Financial Intelligence Unit, Financial Supervisory Service, industry associations and major commercial banks.
The move aims to allow authorities to apply existing laws more proactively to protect potential victims and block the movement of illicit funds.
