Starting next year, financial transactions will be restricted for corporations directly or indirectly owned or controlled by individuals related to terrorism.
The Financial Services Commission announced that a revised enforcement decree of the Anti-Money Laundering Act concerning terrorism was approved at the Cabinet meeting on the 18th. The commission stated that with the revised Anti-Money Laundering Act set to take effect on Jan. 22, 2026, the specific scope of corporations owned or controlled directly or indirectly by individuals related to terrorism would be established by the enforcement decree.
The existing Anti-Money Laundering Act restricts the financial transactions and property rights of individuals related to terrorism. The revised Anti-Money Laundering Act, changed in January, decided to limit financial transactions and property rights dispositions of corporations that such individuals directly or indirectly own or control, in order to prevent concealment of their assets.
The Financial Services Commission defined corporations owned by individuals related to terrorism as those in which "the terrorist or others together or alone contribute or own more than 50% equity."
A corporation controlled by individuals related to terrorism is defined in cases where ▲ it can appoint a majority of representatives or executives ▲ it exercises a majority of voting rights ▲ it influences the appointment or dismissal of executives, fund management, etc., according to contracts or bylaws.
The revised enforcement decree will take effect on Jan. 22, 2026, after undergoing procedures such as presidential approval and announcement. Once the revised decree is enacted, the Financial Services Commission can designate corporations directly or indirectly owned or controlled by individuals related to terrorism as "entities subject to restrictions on designated financial transactions". Corporations that are owned or controlled directly or indirectly by such entities will have their financial transactions and property rights dispositions restricted, even if they are not separately designated or announced by the commission.