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ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

Act No. 8697, Dec. 21, 2007

Amended by Act No. 7311, Dec. 31, 2004

Act No. 7336, Jan. 17, 2005

Act No. 8635, Aug. 3, 2007

Act No. 8704, Dec. 21, 2007

Act No. 8863, Feb. 29, 2008

Article 1 (Purpose)

The purpose of this Act is to provide for matters concerning reporting on, and the use of specific financial transaction information to regulate money laundering and the financing of terrorism, so as to prevent crimes and furthermore contribute to establishing sound and transparent financial transaction systems. Article 2 (Definitions)

The definitions of terms used in this Act are as follows:

1. The term "financial institution, etc." means any of the following: (a) The Korea Development Bank, the Export-Import Bank of Korea, the Industrial Bank of Korea or financial institutions under the Banking Act;

(b) Long-term credit banks under the Long-Term Credit Banks Act; (c) Merchant banks under the Merchant Banks Act;

(d) Mutual savings banks and the National Federation of Mutual Savings Banks under the Mutual Savings Banks Act;

(e) Agricultural Cooperatives and the National Federation of Agricultural Cooperatives under the Agricultural Cooperatives Act; (f) Fisheries Cooperatives and the National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act; ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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(g) Credit unions and the National Federation of Credit unions under the Credit Unions Act;

(h) Community Credit Cooperatives and the National Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act;

(i) Trust companies under the Trust Business Act; (j) Securities companies, securities finance companies, brokerage companies or institutions or transfer agencies under the Securities and Exchange Act, or asset management companies under the Indirect Investment Asset Management Business Act; (k) Insurance companies under the Insurance Business Act; (l) Communication agencies under the Postal Savings and Insurance Act;

(m) Futures companies under the Futures Trading Act; and (n) Entities prescribed by Presidential Decree, among those making financial transactions under subparagraph 2;

2. The term "financial transaction" means financial transactions under subparagraph 3 of Article 2 of the Act on Real Name Financial Transactions and Guarantee of Secrecy (hereafter referred to as the "Actual Name Financial Transactions Act"), futures trading under subparagraph 1 of Article 3 of the Futures Trading Act, or other transactions prescribed by Presidential Decree.

3. The term "illegal assets" means any of the following items: (a) Gains, etc. from crimes under subparagraph 4 of Article 2 of the Act on the Regulation and Punishment of the Concealment of Gains from Crimes (hereafter referred to as the "Gains form Crimes Regulation Act"); and

(b) Illegal gains, etc. under Article 2 (5) of the Act on Special Cases concerning the Prevention of Illegal Trafficking in Narcotics, etc (hereafter referred to as the "Narcotics Prevention Act").

4. The term "money laundering" means any of the following items: (a) Crimes under Article 3 of the Regulation Gains form Crimes Act; (b) Crimes under Article 7 of the Narcotics Prevention Act; and (c) Hiding the acquisition or disposal of assets, or the causes of accrual thereof or concealing the assets, with intention to commit crimes under Article 9 of the Punishment of Tax Evaders Act, Article 269 ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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Article 2 (Definitions)

The definitions of terms used in this Act are as follows:

1. The term "financial institution, etc." means any of the following: (a) The Korea Development Bank, the Export-Import Bank of Korea, the Industrial Bank of Korea or financial institutions under the Banking Act;

(b) Long-term credit banks under the Long-Term Credit Bank Act; (c) Investment trading businesses, investment brokerage businesses, collective investment businesses, trust companies, securities financial companies, merchant banks or transfer agencies under the Capital Market and Financial Business Act;

(d) Mutual savings banks and the National Federation of Mutual savings banks under the Mutual Savings Banks Act;

(e) Agricultural Cooperatives and the National Federation of Agricultural Cooperatives under the Agricultural Cooperatives Act; (f) Fisheries Cooperatives and the National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act;

(g) Credit unions and the National Federation of Credit unions under the Credit Unions Act;

(h) Community Credit Cooperatives and the National Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act; (i) Deleted;

(j) Deleted;

(k) Insurance companies under the Insurance Business Act; (l) Communication agencies under the Postal Savings and Insurance Act; (m) Deleted;

(n) Casino businesses authorized under the Tourism Promotion Act (hereafter referred to as "casino businesses"); and

(o) Entities prescribed by Presidential Decree, among those making financial or 270 of the Customs Act, or Article 6 or 8 of the Act on the Aggravated Punishment, etc. of Specific Crimes, as results of foreign exchange transactions prescribed by Presidential Decree or other foreign trading (hereafter referred to as "foreign exchange transaction, etc."). ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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transactions under subparagraph 2;

2. The term "financial transaction" means any of the following items: (a) Import, sale, repurchase, brokerage, discount, issuance, redemption, refund, trust, registration or exchange of financial assets (referring to financial assets as referred to in Article 2-2 of the Act on Real Name Financial Transactions and Guarantee of Secrecy), or paying interest, discount or dividends thereof, by a financial institution, etc., or conducting such business as an agency, or other transactions dealing with financial assets, which are prescribed by Ordinance of the Prime Minister; (b) Transactions made on the derivatives market under the Capital Market and Financial Business Act, and other transactions prescribed by Presidential Decree; and

(c) Exchanging cash or checks with something used as cash or a checks, which is prescribed by presidential Decree in the place of a casino business;

3. The term "illegal assets" means any of the following items: (a) Gains, etc. from crimes under subparagraph 4 of Article 2 of the Act on the Regulation and Punishment of Concealment of Gains from Crimes (hereafter the "Regulation Gains form Crimes Act"); (b) Illegal gains, etc. under Article 2 (5) of the Act on Special Cases concerning the Prevention of Illegal Trafficking in Narcotics, etc (hereafter the "Narcotics Prevention Act"); and

(c) Funds for terrorism referred to in subparagraph 1 of Article 2 of the Act on Prohibition against the Financing of Terrorism;

4. The term "money laundering" means any of the following items: (a) Crimes under Article 3 of the Regulation Gains form Crimes Regulation Act;

(b) Crimes under Article 7 of the Narcotics Prevention Act; and (c) Hiding the acquisition or disposition of assets, or the causes of accrual thereof or concealing the assets, with intention to commit crimes under Article 9 of the Punishment of Tax Evaders Act, Article 269 or 270 of the Customs Act, or Article 6 or 8 of the Act on the Aggravated Punishment, etc. of Specific Crimes;

5. The term "financing of terrorism" means crimes falling under Article 6 of the ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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Act on Prohibition against the Financing of Terrorism. Article 3 (Korea Financial Intelligence Unit)

(1) The Korea Financial Intelligence Unit is founded under the Financial Services Commission so as to efficiently perform the following responsibilities:

1. Controling, analyzing or providing affairs reported or notified under Article 4, 4-4, or 6;

2. Supervising or inquiring work, under Article 4, 4-2, 5, or 5-2, performed by financial institutions, etc.;

3. Cooperation and exchange of information, under Article 4 (6) 2, with foreign financial intelligence services;

4. Responsibilities pursuant to the Act on Prohibition against the Financing of Terrorism; and

5. Responsibilities related to subparagraphs 1 through 4, prescribed by Presidential Decree.

(2) The Korea Financial Intelligence Unit shall perform its competent duties independently, and its public officials may not engage in work other than that pursuant to this Act or the Act on Prohibition against the Financing of Terrorism. (3) Necessary matters for the number of personnel, organizational structure and administration of the Korea Financial Intelligence Unit shall be prescribed by Presidential Decree.

(4) The head of the Korea Financial Intelligence Unit (hereafter referred to as "the Commissioner of the Korea Financial Intelligence Unit") shall report on each matter, regarding responsibilities referred to in paragraph (1), at a regular session of the National Assembly each year:

1. The number of cases reported by financial institutions, etc., under Article 4;

2. The amount of specific financial transaction information the Korea Financial Intelligence Unit provided to investigation authorities, under Article 7;

3. The amount of information the Korea Financial Intelligence Unit has exchanged with foreign intelligence services, under Article 8; and

4. Other statistical data related to the responsibilities of the Korea Financial Intelligence Unit.

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Article 4 (Reports on Transactions Presumed Illegal) (1) Each financial institution, etc. shall immediately report, as prescribed by Presidential Decree, any of the following cases to the Commissioner of the Korea Financial Intelligence Unit:

1. Where there are reasonable grounds to suspect that assets gained from a financial transaction are illegal or the other party in a financial transaction is laundering money or financing terrorism, and the amount of the relevant transaction is at least the amount determined by Presidential Decree;

2. Where there are reasonable grounds to presume that the other party in a financial transaction is making installment transactions to circumvent the provisions of subparagraph 1, and the total sum of installment transactions is at least the amount determined by Presidential Decree, referred to in subparagraph 1; and

3. Where any person engaged in a financial institution, etc. reports to the competent investigation authority, under Article 5 (1) of the Gains form Crimes Regulation Act, or Article 5 (2) of the Act on Prohibition against the Financing of Terrorism.

(2) Even if gains from a financial transaction are less than the amount referred to in paragraph (1) 1 or 2 (referring to the total amount, in cases of subparagraph 2), as determined by Presidential Decree, there are reasonable grounds to suspect that the relevant assets are illegal or the other party in the financial transaction is laundering money, or financing terrorism, and then a financial institution, etc. may report such allegation to the Commissioner of the Korea Financial Intelligence Unit.

(3) Where a financial institution, etc. files a report under paragraphs (1) or (2), it shall clearly state reasonable grounds for such presumption. (4) Where a financial institution, etc. makes report under paragraphs (1) or (2) shall keep each of the following data related to the relevant report for five years from the date of report, as prescribed by Presidential Decree:

1. Data to verify the actual name of the other party in a financial transaction;

2. Data on financial transactions to report under paragraph (1) or (2); and

3. Data where financial institutions, etc. have recorded reasonable grounds ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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for such suspicion

(5) Where the Commissioner of the Korea Financial Intelligence Unit performs an analysis on matters reported by financial institutions, etc. under paragraph (1) or (2), he/she may access, or make copies of related data kept by a financial institution, etc. under paragraph (4), only to deliberate if each reported matter falls under the conditions of each paragraph.

(6) Where any person, who works for a financial institution, etc., intends to make, or has already made a report under paragraph (1) or (2), he/she shall not leak such fact to anyone, including the other party to the relevant financial transaction: Provided, That this shall not apply in any of the following cases:

1. Where the fact of report is internally disclosed by the same financial institution, etc. to prevent money laundering or the financing of terrorism; and

2. Where a report, equivalent to one referred to in paragraph (1) or (2), is made to a foreign institution engaged in performing duties equivalent to those referred to in each item of Article 3 (1) (hereafter referred to as a "foreign financial intelligence service"), following the laws or regulations of the relevant foreign country.

(7) No financial institution, etc. (including anyone who works for a financial institution, etc.) that has made a report under paragraph (1) or (2) shall be liable for compensation of damage to the other party in a financial transaction, or an interested party thereof, related to the relevant report, unless such financial institution, etc. has made a false report intentionally or by gross negligence. Article 4-2 (Report on High-Value of Cash Transactions) (1) Where a financial institution, etc. has paid to, or received from the other party in a financial transaction, cash (excluding foreign currencies) or other cash-equivalent means of payment prescribed by Presidential Decree (hereafter referred to as "cash, etc."), at least the amount determined by Presidential Decree within the extent of 50 million won, it shall report such fact to the Commissioner of the Korea Financial Intelligence Unit the fact within 30 days: Provided, That this shall not apply in any of the following cases:

1. Paying to, or receiving cash, etc., from another financial institution, ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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etc. (excluding entities prescribed by Presidential Decree);

2. Paying to, or receiving cash, etc., from the State, local government or other public organizations determined by Presidential Decree; and

3. Paying or receiving cash, etc., ordinary in nature, which involves no risk of money laundering and is prescribed by Presidential Decree. (2) Where there are reasonable grounds to suspect that the other party in a financial transaction is making installment transactions to circumvent the provisions of subparagraph 1, a financial institution, etc. shall report such fact to the Commissioner of the Korea Financial Intelligence Unit. (3) The Commissioner of the Korea Financial Intelligence Unit may designate the following organizations as intermediaries to handle data related to reports on high-value cash transactions (hereafter referred to as "intermediaries") and have them administer such responsibilities:

1. Korea Federation of Banks, an incorporated association, founded pursuant to Article 32 of the Civil Act, upon approval by the Financial Services Commission;

2. Korea Financial Investors' Association established pursuant to Article 283 of the Capital Market and Financial Business Act; or

3. Korea Federation of Savings Banks established pursuant to Article 25 of the Mutual Savings Banks Act.

(4) The methods of reporting pursuant to paragraph (1) or (2), the designation and administration of intermediaries pursuant to paragraph (3), and other necessary matters shall be prescribed by Presidential Decree.

[This Article Newly Inserted by Act No. 7336, Jan. 17, 2005] Article 5 (Appointment of Persons Responsible for Reporting in Financial Institution, etc.)

Each financial institution, etc. (excluding an entity determined by Presidential Decree) shall take each of the following measures to efficiently conduct reporting under Article 4 (1) and (2) or Article 4-2, and to effectively prevent money laundering and the financing of terrorism:

1. Appointment of responsible persons for reporting under Article 4 (1) and (2) or Article 4-2, and the establishment of an internal reporting system;

ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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2. Formulation and enforcement of guidelines for preventing money laundering and the financing of terrorism; and

3. Education and training of executives and employees, to prevent money laundering and the financing of terrorism.

Article 5-2 (Responsibilities of Financial Institutions, etc. to Verify Clients)

(1) As a reasonable precaution to prevent money laundering and the financing of terrorism, each financial institution, etc. shall take any of the following measures. In such cases, each financial institution, etc. shall prepare and enforce guidelines for such measures:

1. In cases where a client opens a new account or makes a transaction of at least the value determined by Presidential Decree: verification on matters prescribed by Presidential Decree, from among the personal information of the relevant person; and

2. In cases where a client may attempt laundering money or the financing of terrorism, for instance, where there is suspicion as to whether he/she is the actual party in a financial transaction: verification on the actual party, and the purposes of the transaction.

(2) Guidelines pursuant to paragraph (1) shall include the details, procedures and methods of proper measures related to the prevention of laundering money, or the financing of terrorism, by the types of clients and financial transactions. (3) The object, standard, procedures and methods of measures for verification pursuant to each subparagraph of paragraph (1), and other necessary matters shall be prescribed by Presidential Decree.

[This Article Newly Inserted by Act No. 7336, Jan. 17, 2005] Article 6 (Notification of Data of Foreign Currency Transactions) (1) The Governor of the Bank of Korea, the head of the relevant customshouse and others prescribed by Presidential Decree shall notify the Commissioner of the Korea Financial Intelligence Unit of data related to approval or reporting under Article 17 of the Foreign Exchange Transactions Act and notification under Article 21 of the said Act.

(2) Necessary matters for the scope of data subject to notification and procedures for such notification, under paragraph (1), shall be prescribed ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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by Presidential Decree.

Article 7 (Release of Information to Investigation Authorities, etc.) (1) The Commissioner of the Korea Financial Intelligence Unit shall, if deemed necessary for investigation of criminal cases related to illegal assets, money laundering or the financing of terrorism, tax or customs violation, the violation of the Political Fund Act or supervision of financial affairs (hereafter referred to as "investigation, etc. of specific criminal cases"), release all of the following information (hereafter referred to as "information on specific financial transactions") to the Public Prosecutor General, the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the National Election Commission or the Financial Services Commission.

1. Information reported by financial institutions, etc., under Article 4 (1) or (2);

2. Information provided by foreign financial intelligence services, under Article 8 (1); and

3. Organization or analysis of information referred to in subparagraph 1 or 2, or reported or notified under Article 4-2 or Article 6. (2) The Commissioner of the Korea Financial Intelligence Unit shall, if deemed necessary for investigation of specific criminal cases related to illegal assets, money laundering or the financing of terrorism, release specific information on financial transactions determined by Presidential Decree to the Commissioner of the Korean National Police Agency. (3) Deleted.

(4) The Public Prosecutor-General, the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the National Election Commission or the Financial Services Commission (hereafter referred to as the "Public

Prosecutor-General, etc.") may request the Commissioner of the Korea Financial Intelligence Unit to release information as referred to in paragraph (1) 3.

(5) The Public Prosecutor General, etc. shall, if requesting for specific information on financial transactions under paragraph (4), do so in writing, ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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stating each of the following matters:

1. Personal information of persons subject to investigation;

2. The purposes for use of information; and

3. The details of information being requested. (6) Where any public official belonging to the Korea Financial Intelligence Unit is requested to provide information in violation of paragraph (5), he/she shall reject such request.

(7) The Commissioner of the Korea Financial Intelligence Unit shall, if provided specific information on financial transactions under paragraphs (1) through (4), shall record the names of public officials involved in deliberation and the process of providing the information, the details of information provided and grounds for release thereof, and shall keep the record for five years from the date of provision of such information, as prescribed by Presidential Decree.

Article 8 (Exchange of Information with Foreign Financial Intelligence Services)

(1) The Commissioner of the Korea Financial Intelligence Unit may release specific information on financial transactions to foreign financial intelligence services, or receive such information therefrom, on a reciprocal basis, if it is deemed necessary to achieve the purposes of this Act.

(2) The Commissioner of the Korea Financial Intelligence Unit may release specific information on financial transactions to foreign financial intelligence services, under paragraph (1), that the foreign financial intelligence services strictly under takes to fulfill each of the following conditions:

1. Specific information on financial transactions provided to foreign financial intelligence services may not be used for purposes other than its original purposes;

2. The provision of specific information on financial transactions shall be kept confidential; and

3. Specific information on financial transactions released to foreign financial intelligence services may not be used for any foreign criminal investigation or trial, without prior consent from the Commissioner of the Korea Financial Intelligence Unit.

(3) If requested by a foreign country, the Commissioner of the Korea Financial Intelligence Unit may give consent, upon obtaining consent from the Minister ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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of Justice, on the use of specific information on financial transactions released under paragraph (1) for a criminal investigation or trial, which is related to such request.

Article 9 (Assurance of Confidentiality of Financial Transaction Information)

(1) Public officials belonging to the Korea Financial Intelligence Unit, employees of intermediaries or persons involved in investigation, etc. on specific criminal cases related to specific information on financial transactions released under the provisions of Article 7 may not release or divulge specific information on financial transactions which they have accessed in the course of performing their duties and information or data received under the provisions of Article 10; no one may request public officials belonging to the Korea Financial Intelligence Unit, employees of intermediaries or persons involved in investigation, etc. on specific criminal cases to release specific information on financial transactions, and information or data received under the provisions of Article 10, or to use them for purposes other than their original purposes.

(2) Specific information on financial transactions released under the provisions of Article 7 shall not be used as evidence in any trial. (3) Employees of financial institutions, etc. who have been involved in a report under Article 4 (1) or (2) may refuse to testify on matters related to the relevant report, except for a trial related to the provisions of Articles 13 and 14: Provided, That this shall not apply, if necessary for substantial public interest.

Article 10 (Request for Release of Information)

(1) The Commissioner of the Korea Financial Intelligence Unit may request the head of the relevant administrative agency to provide data prescribed by Presidential Decree (excluding specific information on financial transactions), if deemed necessary for analysis on specific information on financial transactions (excluding information referred to in Article 7 (1) 3; hereafter the same shall apply in this Article) or information which is reported, or notified under the provisions of Article 4-2 or Article 6 . (2) The Commissioner of the Korea Financial Intelligence Unit may require the head of the credit information agency under Article 7 of the Use and ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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Protection of Credit Information Act, stating the purposes of use in writing, to provide credit information (excluding specific information on financial transactions), as prescribed by Presidential Decree, if it is deemed necessary for analysis of specific financial transaction information.

(3) The Commissioner of the Korea Financial Intelligence Unit may require the heads of financial institutions, etc., stating each of the following matters in writing, to provide information or data related to foreign exchange transactions under the Foreign Exchange Transactions Act, only if reported or released information is deemed to meet requirements as referred to in Article 4 (1) or (2), in analysing specific information on financial transactions.

1. Personal information of parties to a transaction;

2. The purposes of use; and

3. The details of required information or data related to financial transactions. (4) Request or requisition of release of information under paragraphs (1) through (3) shall only be limited the minimum extent necessary. Article 11 (Supervision or Examination of Financial Institutions, etc.) (1) The Commissioner of the Korea Financial Intelligence Unit may supervise the duties of financial institutions, etc., issue orders or directions necessary for supervision, and have its public officials examine the duties of financial institutions, etc, under Articles 4, 4-2, 5 and 5-2.

(2) If the Commissioner of the Korea Financial Intelligence Unit discovers the violation of Act or any orders or directions under the Act, as a result of examination pursuant to paragraph (1), he/she may take necessary measures, such as issuing orders of correction, or requesting for discipline against executives or employees related to such violation. (3) The Commissioner of the Korea Financial Intelligence Unit may entrust the Governor of the Bank of Korea, the Governor of Financial Supervisory Service under the Act on the Establishment, etc. of Financial Services Commission or others Prescribed by Presidential Decree, and have their employees perform examination pursuant to paragraph (1) and implement measures pursuant to paragraph (2).

(4) Each person conducting an examination under paragraph (1) or (3) shall ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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carry identification indicating his/her authority, and display it to the person of interest.

Article 12 (Relations to Other Acts and Subordinate Statutes) (1) The provisions of Articles 4, 4-2, 6 through 8, and 10 shall have priority over Article 4 of the Act on Real Name Financial Transactions and Guarantee of Secrecy, Article 23 and 27 of the Use and Protection of Credit Information Act, or Article 22 of the Foreign Exchange Transactions Act. (2) Article 24-2 of the Use and Protection of Credit Information Act shall not apply to information released under this Act by financial institutions, etc. or intermediaries. Article 13 (Penal Provisions)

Any person falling under any of the following subparagraphs shall be sentenced to five years or less in prison with prison labor, or fined 30 million won or less:

1. Any person who has abused his/her authority to access, or make copies of relevant data kept by financial institutions, etc., or has requested the head of a financial institution, etc. to release information or data related to financial transactions despite he/she not fulfilling the qualifications under Article 4 (5) or Article 10 (3); and

2. Any person who has, in violation of Article 9 (1), released or divulged information or data of which he/she has become aware in the course of performing his/her duties or information received under Article 10, or used it for purposes other than its original purposes; or any person who has requested for specific information on financial transactions or information or data released under Article 10, or has requested to use it for purposes other than their original purposes. Article 14 (Penal Provisions)

Any person falling under any of the following subparagraphs shall be sentenced to one year or less in prison with prison labor, or fined five million won or less:

1. Any person who has made a false report pursuant to Article 4 (1) or (2), or Article 4-2 (1) or (2); and

2. Any person who has violated Article 4 (6). Article 15 (Sentence to Both Imprisonment and Fine) Any person who has violated Article 13 and 14 may be sentenced to both ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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imprisonment with prison labor and to a fine.

Article 16 (Joint Penal Provisions)

Where the representatives of a corporation, or the agents, employees or other workers of a corporation or individual has violated Article 4 against the affairs of the corporation or individual, not only shall violators but also the corporation or individual also be fined pursuant to the same Article. Article 17 (Fines for Negligence)

(1) Any person falling under any of the following subparagraphs shall be fined ten million won or less:

1. Any person who has failed to make a report in violation of Article 4 (1) 1 and 2, or Article 4-2 (1) and (2);

2. Any person who has failed to respond to, refused, interfered with, or avoided an order, direction or examination under Articles 11 (1) through (3); and

3. Deleted. (2) Fines for negligence under paragraph (1) 1 and 2 shall be imposed and collected by the Commissioner of the Korea Financial Intelligence Unit, as prescribed by Presidential Decree.

(3) Any person who raises an objection against a fine under paragraph (2) may appeal to the Commissioner of the Korea Financial Intelligence Unit within 30 days from the date the notification of such measure arrived. (4) If any person upon whom a fine has been imposed pursuant to paragraph (2) raises an objection pursuant to paragraph (3), the Commissioner of the Korea Financial Intelligence Unit shall immediately notify the competent court of such fact, and the competent court, upon receiving such notification, shall hold a hearing under the Non-Contentious Case Litigation Procedure Act.

(5) If neither an objection is raised nor the fine for negligence paid within such period prescribed in paragraph (3), the said fine for negligence shall be collected as dispositions on default of national taxes. ADDENDA

(1) (Enforcement Decree) This Act shall enter into force two months after the date of its promulgation.

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(2) (Applicability concerning the Scope of Information Requested by the Commissioner of the Korea Financial Intelligence Unit) The scope of information or materials the Commissioner of the Korea Financial Intelligence Unit may request the head of a financial institution, etc. to submit under Article 10 (3) 3 shall be limited only to information or materials related to financial transactions made after this Act enters into force. (3) Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. (Omitted.)

Articles 2 through 16 Omitted.

ADDENDA

(1) (Enforcement Decree) This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 4-2 and 5-2 shall enter into force one year after this Act enters into force. (2) (Applicability concerning Report on High-Value Cash Transactions) The amended provisions of Articles 4-2 and 5-2 shall initially apply to the first payment or receipt of cash, etc.

(3) Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 44 Omitted.

ADDENDA

Article 1 (Enforcement Decree)

This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 1, subparagraphs 1 (n), 2 (c), 3 (c) and 5 of Article 2, Article 3 (1) 4 and (2), Article 4 (1), (2) and the part related to the financing of terrorism from paragraph (6) 1. Article ACT ON REPORT ON, AND THE USE OF SPECIFIC FINANCIAL TRANSACTION INFORMATION

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4-2 (1) 1, (3) and (4), Article 5, Article 5-2, Article 7 (1) and (2), Article 9 (1), and the part related to intermediaries from Article 12 (2) shall enter into force one year after the date of its promulgation. Article 2 (Applicability to Money Laundering)

The amended provisions of subparagraph 4 (c) of Article 2 shall initially apply to the first money laundering, referred to in the said item, after this Act enters into force.

Article 3 (Transitional Measures Concerning Fines for Negligence) The former provisions shall apply to fines for negligence on misconduct committed before this Act enters into force.

Article 4 (Transitional Measures Pursuant to the Capital Market and Capital Market and Financial Investment Business Act) (1) Transactions made at the derivatives market as set forth in subparagraph 2 (b) of Article 2 under the Capital Market and Financial Business Act shall be deemed futures trading under subparagraphs 1 and 2 of Article 3 of the Futures Trading Act, until February 4, 2009. (2) Korea Financial Investors' Association as set forth in Article 4-2 (3) 2 shall be deemed the Korea Securities Dealers Association established under Article 162 of the Securities and Exchange Act, until February 4,

2009. ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. Articles 2 through 5 Omitted.


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