Financial Supervisory Service to respond to bank financial accidents… Improvement of internal control system and supervisory system

As large-scale financial accidents occur one after another at banks, the financial supervisory authority is making every effort to identify the causes of the accidents and prepare countermeasures. The bank’s internal control system was improved and the supervisory system of the Financial Supervisory Service began an internal review to see if there were any loopholes.

According to Newsis on the 31st, large-scale financial accidents have recently occurred in the banking sector. In May, Woori Bank embezzled 70 billion won. As a result of inspection by the Financial Supervisory Service, the embezzlement employee stole the bank president’s seal or made a false report to steal money for about 10 years. The FSS also revealed that the employee had been absent from work for one year at the time.

Currently, other banks are also conducting their own investigations into the case of undisclosed embezzlement. As a result, some banks have also been caught embezzling hundreds of millions of won and as many as billions of won.

Recently, foreign currency transactions suspected of exchanging virtual currency occurred at Woori Bank and Shinhan Bank, and the FSS is investigating. Trillions of trillions of dollars of funds flowed out to Hong Kong and China through cryptocurrency exchanges, domestic corporations, and banks. The Financial Supervisory Service is currently investigating whether such foreign currency transactions have occurred at other banks.

As such large-scale financial accidents occurred one after another in banks, the Financial Supervisory Service began to investigate the cause and come up with countermeasures.

The FSS considers the bank’s lack of internal control to be serious and prepares a plan to strengthen internal control together with the FSC. Since the FSS did not preemptively detect financial accidents, it also checks for loopholes in the supervisory system.

In particular, information sharing and cooperation with investigative agencies, such as the prosecution and police, will be strengthened, given that there are limits to forced investigations.

Lee Bok-hyeon, head of the Financial Supervisory Service, recently attended a general meeting of the Political Affairs Committee and said, “It has a strong market turbulent nature that damages the interests of investors in virtual assets.” In the meantime, we will come up with ways to improve the supervision system.”

Regarding the embezzlement accident, President Lee said, “The scale or aspect is not good considering only individual deviation. We will look at the overall and improve the (bank) internal control system. We will review it,” he said.

Reporter Kim Hee-il, Global Economics, [email protected]

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