A overseas worker of South Korea-based Busan Financial institution stole roughly 1.48 billion gained of buyer funds and invested the cash in crypto belongings 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 mentioned.
The nation’s Monetary Supervisory Service (FSS) mentioned 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 job in main embezzlement incidents.
The FSS mentioned that Shinhan and Woori Banks reported over 4 trillion gained in abroad remittances, whereas the whole suspicious banking transactions amounted to round 7 trillion gained.
Whereas the regulator’s transfer to revise the company governance act will not be immediately associated to irregular remittances and main embezzlement, it’s believed that such revision may enhance inner management practices.
The FSS lately introduced that it might revise the Act to enhance administration’s accountability for inner management.
It additionally shaped a job power 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 monetary establishments liable in case of monetary 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 establishing an inner management sector as a part of the analysis requirements for monetary establishments. It might additionally improve the energy of its audit unit.