South Korea's financial watchdog, customs service, and credit card firms are joining forces. Th

South Korea Launches Crackdown on Crypto Crime Funding—Credit Cards, Customs, and FSS Join Forces

South Korea is closing the data gap. The Financial Supervisory Service, Korea Customs Service, Credit Finance Association, and nine card companies signed a pact to block transnational criminal funds. The goal: use overseas card usage and immigration records to choke off money flows fueling phone scams and virtual asset crimes.

Before, Customs had immigration data but couldn't monitor overseas spending in real time. Card companies had payment data but no clue about cardholders' border activity. Now, Customs will flag high-risk transactions to card companies, and the FSS will greenlight measures like instant transaction suspension when something looks off.

FSS head Lee Chan-jin says the system is designed to stop criminal proceeds from leaving the country at the source—especially targeting "currency exchange" schemes like ATM cash-outs abroad and crypto laundering. The loop is tightening.