The government will crack down on funds going overseas without documentation.
The Ministry of Economy and Finance said on the 19th it will introduce the Overseas Remittance Integrated Management System (ORIS), which can identify individual overseas remittance records across all financial firms, including banks, card companies, securities firms, and Fintech.
Currently, overseas remittances are integrated and managed only within the banking sector. The amount that can be remitted overseas without documentation across all banks is limited to $100,000 per year. Whether through KB Kookmin Bank or through Shinhan Bank, the total amount sent overseas without documentation through all banks cannot exceed $100,000 per year. This cross-bank aggregation is possible because a remittance limit management system has been established.
However, card companies, securities firms, and Fintech do not have such a system. Because of this, the limit is currently $50,000 per firm per year. If an individual wants to increase undocumented overseas remittances, they can split $50,000 chunks across different financial firms. There is a regulatory gap.
Accordingly, the Ministry of Economy and Finance (MOEF) decided to build ORIS, an IT system that aggregates and stores individual overseas remittance records based on the Bank of Korea's foreign exchange network and provides that information to financial firms in real time. Once ORIS is in operation, a real-time overseas remittance monitoring system covering all sectors, including banks, card companies, securities firms, and Fintech, will be in place.
However, the limit for undocumented remittances through ORIS has not yet been set. An official at the Ministry of Economy and Finance (MOEF) said, "We will decide the remittance limit after hearing opinions from the industry and consumers."
The Ministry of Economy and Finance (MOEF) is currently conducting system tests with institutions participating in ORIS. It plans to pilot ORIS at the end of this month and put it into full operation in January next year. In line with the system's launch, it plans to revise the Foreign Exchange transaction Regulations to integrate sector-by-sector limits into a total cap.
An official at the Ministry of Economy and Finance (MOEF) said, "We will resolve the issue of differentiated remittance limits between banks and other sectors," adding, "Through ORIS, we will thoroughly monitor compliance with individual integrated remittance limits across all institutions."