The Financial Supervisory Service's ex officio investigations will go into full effect next month. The Financial Supervisory Service is said to be looking into cases with a high risk of evidence destruction so it can launch probes as soon as it is granted ex officio investigative authority.
According to financial authorities on the 22nd, a revision to the Rules on Duties of the Special Judicial Police for the Capital Market, aimed at strengthening the ex officio investigative powers of the Financial Supervisory Service's special judicial police for the capital market, will take effect next month.
On the 16th, the Financial Services Commission and the Financial Supervisory Service gave advance notice of a rule change to the revision of the Rules on Duties of the Special Judicial Police for the Capital Market, which would greatly expand the scope for the Financial Supervisory Service special judicial police to open investigations.
Once the revision takes effect, the Financial Supervisory Service special judicial police will have ex officio investigative authority to convert any inquiry case into a criminal investigation without going through complaints or referral procedures by the Securities and Futures Commission (SFC).
The aim is to cut the time between inquiry and investigation to block the possibility of evidence destruction and ensure timely investigations. Until now, investigations by the special judicial police required an SFC complaint or referral and case assignment by prosecutors.
Starting next month, the Financial Supervisory Service special judicial police will be able to convert any inquiry case handled by the Financial Services Commission or Financial Supervisory Service inquiry units into an investigation by going only through the Investigation Review Committee, even without an SFC complaint or referral to prosecutors.
The Financial Supervisory Service special judicial police have reportedly shortlisted three to four recent inquiry cases with a high risk of suspects fleeing or destroying evidence as candidates for the first ex officio investigation.
Financial authorities are also pushing measures to strengthen powers, such as granting the joint response team the authority to obtain communications records. In that case, compulsory inquiry powers would expand beyond existing search and seizure and impoundment to include communications inquiries.
A financial authority official said, "Recent financial crimes have become increasingly sophisticated and faster," adding, "If allegations become clear during an inquiry, the structure will allow an immediate switch to an investigation."