By Kim Seon Ah

The Paris-based Financial Action Task Force (FATF) has raised Korea's compliance standards to prevent money laundering to the world's highest level.

Korea Financial Intelligence Unit (KoFIU) of the Financial Services Commission in Seoul on Oct. 27 said the FATF decided on this at its general meeting from Oct. 21-25 at the headquarters of the Organisation for Economic Co-operation and Development in the French capital.

The FATF sets global standards to jointly crack down on money laundering and terrorist financing. It regularly assesses such compliance by country through three ratings: regular follow-up inspection, enhanced follow-up inspection and sanction target.

"In 2001, we adopted an anti-money laundering system through the Act on Reporting and Using Specified Financial Transaction Information and the Act on Regulation and Punishment of Criminal Proceeds Concealment, and 23 years later, we are considered a model country by the international community," KoFIU said.

"This will improve Korea's image as an advanced economy with a complete anti-money laundering system and boost trust in the domestic financial system and related institutions."

Other countries receiving the FATF's highest grade were the U.K., France, Japan and Israel. Germany, Australia, China, Mexico and Brazil were classified in the enhanced follow-up inspection category, while North Korea, Iran and Myanmar were branded high-risk countries.

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