A overseas worker of South Korea-based Busan Financial institution stole roughly 1.48 billion received of buyer funds and invested the cash in crypto property like Bitcoin (BTC), native media reported on August 1.
In line with the report, the worker stole the funds between July 9 and July 25.
South Korea eyes stricter management measures
South Korea is contemplating reviewing its Monetary Firm Governance Act due to the theft, the report stated.
The nation’s Monetary Supervisory Service (FSS) stated the embezzlement occurred because of the lack of inner controls in eight key areas, together with personnel administration, Self-store audit, and seal administration.
The regulator additionally found that irregular transaction monitoring procedures and irregular abroad remittance conditions additionally performed a task in main embezzlement incidents.
The FSS stated that Shinhan and Woori Banks reported over 4 trillion received in abroad remittances, whereas the overall suspicious banking transactions amounted to round 7 trillion received.
Whereas the regulator’s transfer to revise the company governance act just isn’t instantly associated to irregular remittances and main embezzlement, it’s believed that such revision may enhance inner management practices.
The FSS not too long ago introduced that it will revise the Act to enhance administration’s duty for inner management.
It additionally shaped a process drive saddled with strengthening inner controls to stop accidents within the banking sector and has been discussing amendments to the regulation.
A part of the anticipated revision is to make the CEO observe inner management requirements. At present, the regulation solely imposes the obligation of setting inner management requirements.
Such modification will make executives of economic establishments liable in case of economic accidents, and so they could be sanctioned,
Authorities consider such legal guidelines will make executives pay extra consideration to the corporate’s inner operations.
Moreover, the FSS is contemplating organising an inner management sector as a part of the analysis requirements for monetary establishments. It might additionally improve the energy of its audit unit.