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ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC.

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ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC.

Presidential Decree No. 17416, Nov. 24, 2001

Amended by Presidential Decree No. 17791, Dec. 5, 2002 Presidential Decree No. 18228, Jan. 20, 2004

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 19054, Sep. 27, 2005

Presidential Decree No. 20653, Feb. 29, 2008

Article 1 (Purpose)

The purpose of this Decree is to prescribe the matters delegated by the Act on Report on Specific Financial Transaction Information and Utilization Thereof, etc. and other matters necessary for the enforcement thereof. Article 2 (Financial Institutions, etc.)

The term "other persons as determined by the Presidential Decree" in subparagraph 1 (n) of Article 2 of the Act on Report on Specific Financial Transaction Information and Utilization Thereof, etc. (hereinafter referred to as the "Act") means:

1. The Credit Guarantee Fund under the Credit Guarantee Fund Act;

2. The Korea Technology Credit Guarantee Fund under the Korea Technology Credit Guarantee Fund Act;

3. The investment counsel companies which run the discretionary investment business from among the investment counsel companies under the Indirect Investment Asset Management Business Act;

4. Deleted;

5. The specialized credit financial business companies and new technology ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 2

project investment cooperatives under the Specialized Credit Financial Business Act;

6. The forestry cooperatives and the federation thereof under the Forestry Cooperatives Act;

7. The financial holding companies under the Financial Holding Companies Act;

8. The small and medium enterprise start-up investment companies and small and medium enterprise start-up investment associations under the Support for Small and Medium Enterprise Establishment Act;

9. The specialized restructuring companies and corporate restructuring associations under the Industrial Development Act; and

10. The money changers under Article 8 (4) of the Foreign Exchange Transactions Act.

Article 3 (Financial Transactions)

The term "other transactions determined by the Presidential Decree" in subparagraph 2 of Article 2 of the Act means:

1. The transactions conducted in relation to the business of loan, guarantee, insurance, mutual aid, factoring (referring to the business of taking over, managing or recovering accounts receivables acquired by a company through provision of goods or services), safeguard deposit, safe lending;

2. The transactions conducted in relation to the business of credit cards, debit cards, pre-paid cards, equipment leasing, deferred payment sales, installment financing, and venture capitals under the Specialized Credit Financial Business Act; and

3. The transactions conducted in relation to the business of foreign exchange under the Foreign Exchange Transactions Act.

Article 4 (Foreign Exchange Transactions, etc.)

The term "foreign exchange transactions and other external transactions determined by the Presidential Decree" in subparagraph 4 (c) of Article 2 of the Act means the financial transactions referred to in subparagraph 3 of Article 3.

Article 5 (Operations of Korea Financial Intelligence Unit) (1) The term "other business affairs as prescribed by the Presidential Decree" in Article 3 (1) 4 of the Act means:

1. Research and study of the trends of money laundering activities and ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 3

the measures for prevention thereof;

2. Provision of education, training and other consulting services for employees of financial institutions, etc. to prevent money laundering activities; and

3. Promotion of cooperation and exchange of information at home and abroad to prevent money laundering activities.

(2) The Commissioner of the Korea Financial Intelligence Unit provided for in Article 3 of the Act (hereinafter referred to as the "Korea Financial Intelligence Unit") shall build a computer system necessary to efficiently report, manage and utilize the information reported by financial institutions, etc. pursuant to Article 4-2 (1) and (2) of the Act and the specific financial transaction information referred to in Article 7 (1) of the Act (hereinafter referred to as the "specific financial transaction information") and take measures necessary for the protection and security of such computer system. Article 6 (Amount of Financial Transactions to be Reported) (1) The term "amount determined by the Presidential Decree" in Article 4 (1) 1 of the Act means:

1. Ten thousand U.S. dollars or the amount denominated in another currency equivalent thereto, in the cases of foreign exchange transactions, etc. (referring to foreign exchange transactions, etc. referred to in subparagraph 4 (c) of Article 2 of the Act) denominated in foreign currency; and

2. Twenty million won, in the cases of any other financial transactions than provided for in subparagraph 1.

(2) In calculating the financial transaction amount stipulated in paragraph (1), if there is a difference between the nominal value of assets subject to the financial transaction and the real transaction amount thereof, it shall be computed on a basis of the real transaction amount, and if it is impossible to confirm the amount of the financial transaction because it is the transaction conducted in relation to safe lending business, it shall be deemed the financial transaction the amount of which is less than the amount referred to in paragraph (1).

Article 7 (Methods, etc. of Reporting on Suspicious Transactions) (1) A financial institution, etc. which is to file a report pursuant to Article ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 4

4 (1) and (2) of the Act shall report the matters provided for in the following subparagraphs in a way of documents, electronic recording media, etc, determined by the Commissioner of the Korea Financial Intelligence Unit (hereinafter referred to as the "Commissioner of the Korea Financial Intelligence Unit") pursuant to the form determined by the Commissioner of the Korea Financial Intelligence Unit:

1. Name and location of the reporting financial institution, etc.;

2. Date and place of the financial transaction subject to such report;

3. Other party to the financial transaction subject to such report;

4. Contents of the financial transaction subject to such report;

5. Reasonable grounds for suspicions under Article 4 (3) of the Act; and

6. Other necessary matters prescribed by the Commissioner of the Korea Financial Intelligence Unit to analyze the financial transaction subject to such report.

(2) When a financial institution, etc. has filed a report under paragraph (1), it shall keep the report and the records referred to in subparagraphs of Article 4 (4) of the Act separately with other financial transaction records. In this case, the said materials may be kept in the form of copies or through microfilms or computer information processing systems. (3) The real name provided for in Article 4 (4) 1 of the Act shall refer to the real name (hereinafter referred to as the "real name") referred to in the Act on Real Name Financial Transactions and Guarantee of Secrecy (hereinafter referred to as the "Real Name Financial Transactions Act"). Article 8 (Provision of Reference Examples for Financial Transactions Subject to Report)

The Commissioner of the Korea Financial Intelligence Unit may provide financial institutions, etc. with the types of transactions with high possibility of money laundering activities, such as large cash transactions which have neither obvious economic reasonability nor lawful objects, financial transactions conducted through accounts opened in others' names, etc., to help them judge whether their own financial transactions fall under the financial transactions referred to in Articles 4 (1) and (2) and 4-2 (2) of the Act. Article 8-2 (Basic Amount Subject to Report of Large Cash Transactions) ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 5

(1) The term "amount determined by the Presidential Decree" in the main sentence of Article 4-2 (1) of the Act means twenty million won. (2) The amount referred to in paragraph (1) shall be calculated by adding up the amounts paid or received by a financial institution, etc. for one business day through financial transactions conducted in the same person's name.

(3) The term "same person's name" in paragraph (2) means the same person's real name.

(4) In adding up the amounts pursuant to paragraph (2), the amounts provided for in the following subparagraphs shall be excluded therefrom:

1. The remittance (including any payment made without using a bankbook) of not more than one million won;

2. The amount of purchase or sale of any foreign currency equivalent to not more than one million won; and

3. The amount of receipt or payment of public imposts, etc. determined by the Commissioner of the Korea Financial Intelligence Unit. [This Article Newly Inserted by Presidential Decree No. 19054, Sep. 27, 2005] Article 8-3 (Scope of Public Organizations)

The term "other public organizations" in Article 4-2 (1) 2 of the Act means those which falls under any one of the following subparagraphs (excluding financial institutions, etc.):

1. Government-invested institutions under the Framework Act on the Management of Government-invested institutions;

2. Government-affiliated institutions under the Framework Act on the Management of Government-Affiliated Institutions;

3. Government-invested research institutions, government-invested research institutions of science and technology, and research councils established under the Act on the Establishment, Operation and Fosterage of Government-Invested Research Institutions and the Act on the Establishment, Operation and Fosterage of Government-Invested Research Institutions of Science and Technology;

4. Local government-directly operated enterprises, local government- invested public corporations and local government public corporations established under the Local Public Enterprises Act; and

5. Other juristic persons designated by the Commissioner of the Korea Financial Intelligence Unit, which are invested, contributed or assisted ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 6

by the Government pursuant to Acts or directly incorporated pursuant to Acts without any authorization or permission of the competent Minister and have no danger of money laundering.

[This Article Newly Inserted by Presidential Decree No. 19054, Sep. 27, 2005] Article 8-4 (Methods, etc. of Reporting Large Cash Transactions) (1) A financial institution, etc. which is to file a report pursuant to Article 4-2 (1) of the Act shall report the matters provided for in the following subparagraphs in a way of on-line or off-line documents, electronic recording media, etc, determined by the Commissioner of the Korea Financial Intelligence Unit pursuant to the form determined by the Commissioner of the Korea Financial Intelligence Unit:

1. Name and location of the reporting financial institution, etc.;

2. Date and place of payment or receipt of cash;

3. Other party to the payment or receipt of cash;

4. Contents of the payment or receipt of cash; and

5. Other necessary matters prescribed by the Commissioner of the Korea Financial Intelligence Unit to analyze the facts of the payment or receipt of cash.

(2) The provisions of Article 7 (1) and (2) shall apply mutatis mutandis with respect to the report referred to in Article 4-2 (2) of the Act. [This Article Newly Inserted by Presidential Decree No. 19054, Sep. 27, 2005] Article 9 (Notification of Appointment or Dismissal of Reporting Officers) When a financial institution, etc. appoints or dismisses any person responsible for reporting under subparagraph 1 of Article 5 of the Act, it shall notify the Commissioner of the Korea Financial Intelligence Unit thereof.

Article 10 (Exception to Appointment, etc. of Reporting Officers) (1) The term "persons determined by the Presidential Decree" in Article 5 of the Act with the exception of its subparagraphs means:

1. Securities finance companies, brokerage companies, and institutions performing stock transfers on behalf of others under the Securities and Exchange Act;

2. Deleted;

3. Asset management companies under the Indirect Investment Asset Management Business Act; and

ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 7

4. Financial holding companies under the Financial Holding Companies Act.

(2) The Commissioner of the Korea Financial Intelligence Unit may exempt the persons referred to in the following subparagraphs in part from the measures provided for in subparagraphs of Article 5 of the Act within the limit of not hampering the efficient prevention of money laundering activities:

1. Financial institutions, etc. referred to in subparagraphs 1 through 3, 5, 6 (limited to the federation), and 8 through 10 of Article 2;

2. Trust companies which are engaged only in the real estate trust business from among those trust companies provided for in the Trust Business Act;

3. Credit cooperatives and the federation thereof under the Community Credit Cooperatives Act;

4. Credit unions (excluding regional unions) and the federation thereof under the Credit Unions Act;

5. Insurance companies which carry mainly on the guarantee insurance and reinsurance business from among those insurance companies provided for in the Insurance Business Act; and

6. Federation of mutual savings banks under the Mutual Savings Banks Act.

Article 10-2 (Coverage, etc. of Duty of Customer Due Diligence) (1) The duty of customer due diligence under Article 5-2 of the Act shall be applicable to financial transactions: Provided, That financial institutions, etc. may be exempt from the duty of confirmation under Article 5-2 (1) 1 of the Act in cases where it is not proper to apply the duty of customer due diligence in the nature of a financial transaction or a financial transaction has very less possibility of being exploited for the purposes of performing money laundering activities as determined and published by the Commissioner of the Korea Financial Intelligence Unit. (2) For the purpose of Article 5-2 (1) 1 of the Act, the term "opens a new account" means to conclude a contract with a financial institution, etc. for the purpose of commencing the financial transaction provided for in paragraph (1), and the term "single financial transaction" means the financial transaction conducted without using an account opened with a financial institution, etc.

ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 8

(3) When there is a doubt as to the confirmation made pursuant to Article 5-2 (1) 1 and 2 of the Act (hereinafter referred to as the "customer confirmation"), the financial institution, etc. concerned may verify its truth with documents, information or other materials provided by trustable sources. In this case, the financial institution, etc. concerned shall reflect the materials related to such verification and the methods thereof in the business guidelines provided for in Article 5-2 (1) of the Act to put them into practice.

[This Article Newly Inserted by Presidential Decree No. 19054, Sep. 27, 2005] Article 10-3 (Amount of Single Financial Transaction) (1) The term "amount determined by the Presidential Decree" in Article 5-2 (1) 1 of the Act means:

1. Ten thousand U.S. dollars or the amount denominated in another currency equivalent thereto, in the cases of foreign exchange transactions, etc. (referring to foreign exchange transactions, etc. referred to in subparagraph 4 (c) of Article 2 of the Act) denominated in foreign currency; and

2. Twenty million won, in the cases of any other financial transactions than provided for in subparagraph 1.

(2) In calculating the financial transaction amount stipulated in paragraph (1), if there is a difference between the nominal value of assets subject to the financial transaction and the real transaction amount thereof, it shall be computed on a basis of the real transaction amount. [This Article Newly Inserted by Presidential Decree No. 19054, Sep. 27, 2005] Article 10-4 (Matters Relating to Identity of Other Party to Financial Transaction)

The term "matters determined by the Presidential Decree" in Article 5-2 (1) 1 of the Act means:

1. For an individual (including any individual conducting financial transactions while disclosing the fact that he/she is acting for another individual, a juristic person or any other organization): Real name, address, contact information (referring to a telephone number and e-mail address; hereinafter the same shall apply);

2. For a profit-making juristic person: Real name, business category, the location of principal office and business place, contact information, and the representative's real name;

ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 9

3. For a non-profit juristic person or any other organization: Real name, the purpose of its establishment, the location of principal office, contact information, and the representative's real name; and

4. For a foreigner or foreign organization: The applicable corresponding matters of subparagraphs 1 through 3, nationality, the location of domestic residence or office.

[This Article Newly Inserted by Presidential Decree No. 19054, Sep. 27, 2005] Article 10-5 (Procedures, etc. of Customer Due Diligence) (1) A financial institution, etc. shall make customer confirmation before conducting financial transactions: Provided, That such confirmation may be made after the financial transactions are conducted if there are any inevitable reasons due to the nature, etc. of the financial transactions, as determined by the Commissioner of the Korea Financial Intelligence Unit.

(2) A financial institution, etc. may omit the customer confirmation in cases where it enters into a financial transaction again with the same customer after the confirmation referred to in Article 5-2 (1) 1 of the Act: Provided, That it shall conduct the customer confirmation again if there is any doubt about the contents or propriety of the existing confirmation. [This Article Newly Inserted by Presidential Decree No. 19054, Sep. 27, 2005] Article 10-6 (Provision of Reference Examples for Customer Due Diligence) The Commissioner of the Korea Financial Intelligence Unit may determine the details of proper confirmation measures, etc. by the types of customers and transactions to help financial institutions, etc. perform the customer confirmation and provide them to such financial institutions, etc. [This Article Newly Inserted by Presidential Decree No. 19054, Sep. 27, 2005] Article 11 (Notification of Records, etc. of Foreign Exchange Transactions) (1) The term "other persons designated by the Presidential Decree" in Article 6 (1) of the Act means the heads of the concentration institutions referred to in Article 21 of the Foreign Exchange Transactions Act (hereinafter referred to as the "foreign exchange information concentration institutions"). (2) The scope of the records to be notified pursuant to Article 6 (2) of the Act shall be as follows:

1. Records which are permitted by the Governor of the Bank of Korea or reported to the heads of customs offices with respect to the exportation ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 10

or importation of the means of payment, etc. under Article 17 of the Foreign Exchange Transactions Act; and

2. Records which are necessary for the Korea Financial Intelligence Unit to perform its services and determined by the heads of foreign exchange information concentration institutions after consultation with the Minister of Strategy and Finance, from among those concentrated to the heads of foreign exchange information concentration institutions under Article 21 of the Foreign Exchange Transactions Act. (3) The Governor of the Bank of Korea, the heads of customs offices and the heads of foreign exchange information concentration institutions shall notify, in an electronic document, the Commissioner of the Korea Financial Intelligence Unit of the records referred to in paragraph (2) every month not later than the tenth day of the following month: Provided, That where the Commissioner of the Korea Financial Intelligence Unit determines separately the time, methods, etc. of such notification after consultation with the Governor of the Bank of Korea, the heads of customs offices and the heads of foreign exchange information concentration institutions, respectively, it shall prevail.

Article 12 (Providing Specific Financial Transaction Information for Commissioner General of National Police Agency)

The term "specific financial transaction information prescribed by the Presidential Decree" in Article 7 (2) of the Act means the specific financial transaction information that meets the standards determined by the Commissioner of the Korea Financial Intelligence Unit in consideration of the amounts of criminal proceeds, the kinds and nature of offenses, the status of offenders, the efficiency of investigation, etc. after consultation with the Prosecutor General and the Commissioner General of the National Police Agency.

Article 13 (Request, etc. by Prosecutor General, etc. for Providing Information)

(1) When the Prosecutor General, the Commissioner General of the National Police Agency, the Commissioner of the National Tax Service, the Commissioner of the Customs Service, the National Election Commission or the Financial Services Commission intends to request the Commissioner of the Korea Financial Intelligence Unit to provide specific financial transaction information pursuant to Article 7 (4) of the Act, he/she or ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 11

it shall submit the documents stating the matters provided for in subparagraphs of paragraph (5) of the said Article directly to the Korea Financial Intelligence Unit: Provided, That in case of an emergency, such documents may be submitted by means of post, facsimile or electronic documents.

(2) Pursuant to Article 7 (7) of the Act, the Commissioner of the Korea Financial Intelligence Unit shall preserve the matters provided for in the following subparagraphs related to the provision of specific financial transaction information through documents or computer information processing systems:

1. Positions and names of the staff members of the Korea Financial Intelligence Unit involved in the process of examination, analysis or the provision of information;

2. Names of the institutions provided with specific financial transaction information, and the date of such provision;

3. Institutions whereto the public officials who have received specific financial transaction information belong, and their positions and names; and

4. Details of provided specific financial transaction information, and the reasons for such provision.

Article 14 (Request for Provision of Records)

(1) The records which the Commissioner of the Korea Financial Intelligence Unit may request the head of the administrative agency concerned to provide pursuant to Article 10 (1) of the Act shall be as follows:

1. Family register;

2. Computer information records related to resident registration;

3. Basic matters relating to the business operator concerned such as the category of business and the location of the business place;

4. Criminal and investigation history records; and

5. Other records deemed by the Commissioner of the Korea Financial Intelligence Unit as necessary after consultation with the head of the administrative agency concerned.

(2) Pursuant to Article 10 (2) of the Act, the Commissioner of the Korea Financial Intelligence Unit may request a credit information concentration ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 12

institution to provide credit information by means of on-line or off-line documents or facsimile.

(3) The financial transaction information referred to in Article 10 (1) and (2) of the Act shall refer to the information or records provided for in Article 6 of the Enforcement Decree of the Act on Real Name Financial Transactions and Guarantee of Secrecy.

Article 15 (Inspection)

(1) The term "other persons designated by the Presidential Decree" in Article 11 (3) of the Act means the Minister of Public Administration and Security and Minister of Knowledge Economy, the Commissioner of the Customs Service, the Administrator of the Small and Medium Business Administration, the president of the national agricultural cooperative federation, the president of the fisheries cooperative federation, the president of the forestry cooperative federation, the president of the national credit union federation, and the president of the community credit cooperative federation. (2) The entrustment of tasks by the Commissioner of the Korea Financial Intelligence Unit pursuant to Article 11 (1) and (2) of the Act, as prescribed in paragraph (3) of the said Article, shall be made according to the following subparagraphs:

1. For the Minister of Public Administration and Security: The community credit cooperative federation under the Community Credit Cooperatives Act;

2. For the Minister of Knowledge Economy: The specialized restructuring companies and corporate restructuring associations under the Industrial Development Act and postal agencies under the Postal Savings and Insurance Act;

3. Deleted;

4. For the Commissioner of the Customs Service: The money changers working within treaty ports from among those under Article 8 (4) of the Foreign Exchange Transactions Act;

5. For the Administrator of the Small and Medium Business Administration: The small and medium enterprise start-up investment companies and small and medium enterprise start-up investment ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 13

associations under the Support for Small and Medium Enterprise Establishment Act;

6. For the Governor of the Bank of Korea: The money changers under Article 8 (4) of the Foreign Exchange Transactions Act with the exception of the money changers working within treaty ports;

7. For the Governor of the Financial Supervisory Service: Financial institutions, etc. provided for in the following items: (a) The Korea Development Bank, the Export-Import Bank of Korea, the Industrial Bank of Korea and the financial institutions under the Banking Act;

(b) Financial institutions, etc. referred to in subparagraph 1 (b) through (d), (i) through (k) and (m) of Article 2 of the Act; (c) Financial institutions, etc. provided for in subparagraphs 3 through 5 and 7 of Article 2; and

(d) The national agricultural cooperative federation under the Agricultural Cooperatives Act, the fisheries cooperative federation under the Fisheries Cooperatives Act, the national credit union federation under the Credit Unions Act, and the forestry cooperative federation under the Forestry Cooperatives Act;

8. For the president of the national agricultural cooperative federation: The cooperatives under the Agricultural Cooperatives Act;

9. For the president of the fisheries cooperative federation: The cooperatives under the Fisheries Cooperatives Act;

10. For the president of the forestry cooperative federation: The forestry cooperatives under the Forestry Cooperatives Act;

11. For the president of the national credit union federation: The credit unions under the Credit Unions Act; and

12. For the president of the community credit cooperative federation: The credit cooperatives under the Community Credit Cooperatives Act. (3) The head of an institution which is entrusted with the tasks under paragraph (2) (hereinafter referred to as the "entrusted institution") may, when necessary to perform the entrusted tasks, determine the standards, plans, procedures, etc. for inspection and the measures to be taken as a result of such inspection.

(4) The head of the entrusted institution shall, when he/she has determined the standards, plans, procedures, etc. for the inspection and the measures ENFORCEMENT DECREE OF THE ACT ON REPORT ON SPECIFIC FINANCIAL TRANSACTION INFORMATION AND UTILIZATION THEREOF, ETC. 14

to be taken as a result of such inspection under paragraph (3), notify the Commissioner of the Korea Financial Intelligence Unit thereof. (5) The Commissioner of the Korea Financial Intelligence Unit may, when necessary to efficiently perform the tasks of inspecting financial institutions, etc., have the staff members of the Korea Financial Intelligence Unit assist the entrusted institution in performing the tasks of inspection after consultation with the head of the entrusted institution. (6) The head of the entrusted institution shall, when he/she has conducted an inspection, notify the Commissioner of the Korea Financial Intelligence Unit of the results thereof (including the results of measures taken after such inspection).

Article 16 (Procedures for Imposition and Collection of Fine for Negligence) (1) When the Commissioner of the Korea Financial Intelligence Unit imposes a fine for negligence under Article 17 (1) of the Act, he/she shall investigate and confirm the offense concerned, and notify in writing a person who is subject to the disposition of the fine for negligence, with the fact of offense, the amount of fine for negligence, etc. specified. (2) When the Commissioner of the Korea Financial Intelligence Unit intends to impose a fine for negligence under paragraph (1), he/she shall give a person who is subject to the disposition of the fine for negligence an opportunity to state his/her opinion orally or in writing (including electronic documents) within a fixed period of ten or more days. In this case, if the said person fails to state his/her opinion by the designated time, he/she shall be considered to have no opinion.

(3) In determining the amount of the fine for negligence, the Commissioner of the Korea Financial Intelligence Unit shall take into consideration the motive, consequence, etc. of the relevant offense. (4) The fine for negligence shall be collected according to the procedures set by the Management of the National Funds Act and the Enforcement Decree thereof concerning the collection of revenues. In this case, the notice of payment shall include the methods, period, etc. of challenging the disposition of the fine for negligence.

ADDENDUM

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This Decree shall enter into force on November 28, 2001. ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. Articles 2 and 3 Omitted.

ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDA (1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 8-2 through 8-4 and 10-2 through 10-6 shall take effect on January 18, 2006. (2) (Applicable Cases concerning Basic Amount Subject to Report of Large Cash Transactions) With respect to the basic amount of large cash transactions which are to be reported by financial institutions, etc. to the Commissioner of the Korea Financial Intelligence Unit, it shall be fifty million won from January 18, 2006 until December 31, 2007, and thirty million won from January 1, 2008 until December 31, 2009, notwithstanding the amended provisions of Article 8-2 (1).

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)

Article 2 Omitted.