South Korea’s Financial Intelligence Unit (FIU) has ordered casino promoter Kangwon Land Inc to pay a fine of KRW564 million (US$382,400) and issued a warning to one executive, for alleged violations of anti-money laundering (AML) regulations.
That is according to a FIU announcement, seen by GGRAsia. It did not name the executive issued with a warning. The FIU is a South Korean governmental agency under the Financial Services Commission, and is tasked with prevention of money laundering and financing of terrorism.
Kangwon Land inc is operator of a resort (pictured) with the country’s only casino legally allowed to serve locals.
Per the FIU’s statement, Kangwon Land Inc had failed either to confirm or report 11 cash and casino chip transactions – with a total face value of at least KRW110 million – involving seven customers in total, between December 30, 2022, and June 15, 2024.
The FIU said “weaknesses in the operator’s reporting procedures contributed to the omissions”.
Kangwon Land Inc also allegedly failed to save 29,993 pieces of client financial-transaction data related to business that took place between November 26, 2022, and April 15, 2024. It also allegedly failed to retain 43,060 customer-identity forms covering operations during a period from November 26, 2022 to June 30, 2025. That was in breach of an obligation to retain such records for at least five years, the FIU stated.
As a result, the FIU ordered Kangwon Land Inc to enhance its internal procedures for reporting of large cash transactions, as well as its client due diligence, suspicious transaction monitoring, and record-keeping, per the regulator’s announcement.
The FIU added that Kangwon Land Inc also allegedly failed to apply proper risk-assessment procedures to non-member customers during an operational period spanning November 26, 2022 to June 30, 2025. As a result, 67,946 non-member customers had not received the necessary due-diligence scrutiny.
The FIU ordered the operator to implement within two months a risk-assessment protocol applicable to all its clients, and for its internal rules and manuals.
GGRAsia has approached Kangwon Land Inc for comment.
