[Herald Economy = Reporter Eun-hee Kim] In the future, corporations directly or indirectly owned or controlled by those involved in terrorism or proliferation of weapons of mass destruction (WMD) will be designated as “targets of financial transaction restrictions,” and their financial transactions or disposal of property rights will be restricted.

According to the Financial Services Commission on the 14th, a partial revision bill to the Act on the Prohibition of Financing for the Purpose of Intimidation and the Proliferation of Weapons of Mass Destruction (Prohibition of Terrorist Financing Act), which includes provisions to expand the scope of asset freezing for terrorist-related individuals, was passed at the Cabinet meeting that day.

The Financial Services Commission can designate individuals involved in terrorism as subjects of financial transaction restrictions, but up until now, it has only been able to restrict transactions involving the funds and assets of individuals involved in terrorism.

According to the revised Anti-Terrorist Financing Act, the Financial Services Commission can designate not only terrorists but also corporations directly or indirectly owned or controlled by them as subjects of financial transaction restrictions. In addition, even if the Financial Services Commission has not separately designated a corporation as subjects of financial transaction restrictions, if it is a corporation directly or indirectly owned or controlled by a terrorist who has been designated as subjects of financial transaction restrictions, financial transactions, property rights disposal, etc. will be restricted.

Accordingly, it is expected that the effectiveness of the Anti-Terrorist Financing Act, which prohibits financing activities related to terrorism and proliferation of weapons of mass destruction, will be enhanced. In addition, it is expected to have a positive effect on the international credibility of the domestic financial system as it will be in line with the international standards of the Financial Action Task Force (FATF).