Chairman Baity of the Egmont Committee,
Executive Secretary Somerville of the Egmont Group,
Incoming President Antonio Rodrigues of the Financial Action Task Force on Money Laundering,
Distinguished delegates,
Ladies and gentlemen,
I would first like to thank Chairman Baity, Madam Somerville and the Egmont Committee for their kind invitation to address you on this special occasion of the 16th Egmont Group Plenary Meeting.
On behalf of the government of the Republic of Korea, I extend our warmest welcome to the delegates of Financial Intelligence Units from all over the world and representatives of international organizations.
Ladies and gentlemen,
In the modern world, economic gains are manifested in terms of money. While money has been considered the essential driving force behind economic activities and social development, there have always existed risks of misusing it. In particular, if laundered money were channeled to terrorist groups, it could pose a great menace to security of innocent people as well as the international community as a whole.
I vividly remember the turbulent days at the United Nations Headquarters in New York under the shadow of 9/11 in 2001. As then President of the 56th Session of the United Nations General Assembly, I devoted myself to bringing the members of the United Nations together in coming up with comprehensive measures to combat international terrorism.
Among the counter terrorism measures, policies on Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) are such critical tools to prevent terrorists from putting their plot into practice by denying access to a fund supply. The Egmont Group has played a key role in this field to protect markets and citizens from terrorism financing in collaboration with government agencies and the United Nations.
With its quickly maturing financial market and growing foothold in the global economy, Korea also has a vested interest in anti-money laundering and counter-terrorism financing policy. At this critical point, I believe that hosting this important meeting here in Seoul will provide an excellent opportunity to not only raise public awareness of money laundering and terrorists financing but also devise viable options to facilitate international cooperation to combat these cancers.
Government's Role in Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT)
Today’s AML and CFT network is globally connected. The network is a hallmark in international cooperation.
The underground economy encourages under-the-table transactions, facilitates the spread of crimes and reduces government tax revenue. What's more, the black economy hinders the application of market economy principles and undermines the soundness of financial systems. Clearly, governments have a tremendous interest in and must recognize AML and CFT as effective tools for combating crime and terrorism.
Prospects of International Cooperation in AML/CFT
As the world economy continues to become rapidly interconnected and globalized, the cross-border flow of funds is also increasing. Such phenomena, while benefitting the world in the form of increased opportunities, at the same time pose an even larger risk for international money laundering and terrorist financing activities.
Such dangerous developments underscore the need for international cooperation and, specifically, the increasing importance on the role of Financial Intelligence Units around the world and the Egmont Group.
Ladies and gentlemen,
Today, I'd like to take this opportunity to touch upon some principles that I believe we must embrace for effective international cooperation in AML and CFT.
First of all, countries should establish a system to quickly respond to money laundering and financing terrorist activities.
As you are well aware, the Egmont Group's aim is to help facilitate quick information exchange and cooperation among FIUs around the world.
I hope today’s meeting becomes a breeding ground for productive and valuable discussions on measures for quickly exchanging information and actively cooperating among countries and their financial intelligence units.
Second, we need international cooperation to overcome differences among countries when implementing an AML system.
Money laundering and terrorist financing cannot be curbed with the efforts of only a few countries. We must all work together in this fight for financial integrity. The reality, however, is that countries have different capabilities for adopting AML and CFT measures and realistically putting them into practice.
Such gaps in the stages of economic development and policy priorities among countries must be addressed by the concerted efforts and resources of the international community for effective AML and CFT. In that sense, those nations at the vanguard of this important fight to implement AML and CFT systems should spare no effort in offering financial and technical support to those countries later joining this important global alliance.
The Korean government stands committed to this cause and hopes to be able to share its accumulated experience and technology with other countries. We recognize that such knowledge sharing and cooperation go a long way in promoting international financial security and the benefits therein for all of our respective citizens.
Third, to enhance the effectiveness of AML and CFT systems, we should improve the capacity of supervisory agencies and strengthen the role of voluntary regulators.
With our increasingly borderless global economy, no country is immune from money laundering and terrorism. Thus, the establishment of laws and systems to curb these ailments is a task that all countries should take on collectively.
It is my firm belief that only when supervisory agencies and voluntary regulators fulfill their responsibilities as AML and CFT planners and executors and steadfastly enforce the principles of FIU cooperation, such laws and preventive systems will be effective.
Korean Government's Policy Direction for AML/CFT
Ladies and gentlemen,
As you all know well, the Lee Myung-bak administration is committed to its vision of making Global Korea, "a contributing member of the international community."
In accordance with this vision, the Korean government will take steps to not only meet the global standard for AML and CFT, but also impose the strictest bar for terrorists and their destructive activities.
Ladies and gentlemen,
Let me elaborate on the Korean government's policy direction in pursuit of these goals.
First and foremost, Korea plans to complete the establishment of a CFT system by the end of this year. To this end, Korea enacted related laws at the end of last year.
What's more, the Korean National Assembly ratified the UN Conventions against Corruption (UNCAC) in February of this year, and subsequently enacted the relevant law.
Korea will also strengthen the Customer Due Diligence (CDD) system for financial institutions. The enhanced system enables evaluation of risk levels based on the kind of customer and pattern of financial transactions. Such evaluation allows financial institutions to perform a differentiated CDD.
Finally, starting this December, casinos will be included in the AML system.
When these systems are in full operation, Korea will be able to meet the global standard for compliance with all AML requirements. In addition, the Korean government will be better prepared to join the FATF (Financial Action Task Force on Money Laundering) following the completion of the FATF mutual evaluation scheduled for November this year.
Closing Remarks
Ladies and gentlemen,
Today, we are gathered here with the common goal of "building a society without money laundering and a world free of terrorism."
We must keep in mind how the decisions that we make at this plenary meeting serve as stepping stones for opening a new chapter in history.
Once again, I congratulate you on the opening of the 16th Egmont Group Plenary Meeting here in Seoul. I have no doubt that this international event will be a great success, significantly contributing to taking our AML and CFT efforts to a higher level and boosting international cooperation.
I wish you all the best and an enjoyable stay in Seoul discovering economic, financial and cultural dynamism of Korea.
Thank you.
이 누리집은 대한민국 공식 전자정부 누리집입니다.
