Mar.23, 2010, 10:53 AM

SEOUL, (Bernama) -- South Korea will tighten its rules over money laundering in an effort to boost the transparency of financial transactions in the country, the top financial regulator said Tuesday.

Citing the Financial Services Commission (FSC), Yonhap news agency reported that the Cabinet passed a bill earlier in the day that requires local financial companies to report to a special intelligence body when transactions involving amounts over 10 million won (US$8,818) or US$5,000 in cash take place.

The revised rules lower the ceiling on such transactions from the previous limit of 20 million won or US$10,000 and will go into effect in July once they are approved by President Lee Myung-bak, the FSC said.

The bill will also entitle the Korea Financial Intelligence Unit, a government body tasked with fighting money laundering, to draw up anti-money laundering regulations to beef up its operational powers, the FSC said.

The revisions are part of government efforts to bring local regulations involving money laundering up to international standards following the nation's gaining of full membership in the Financial Action Task Force, an inter-governmental organisation geared toward tackling money laundering and terrorist financing, the regulator said.