Regulations Governing Anti-Money Laundering of Financial Leasing Enterprises Article 2

Terms used in these Regulations are defined as follows:1. “Financial leasing enterprise” shall mean the enterprise belonging to member of leasing association established pursuant to Commercial Group Act, which conducts financial leasing transactions.2. “Financial leasing transaction” shall mean the transaction complying with the definition of financial leasing in Standards published by International Accounting Standards Board. This does not extend to the transaction in relation to consumer products.3.“Beneficial owner” shall mean the natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted, including those persons who exercise ultimate effective control over a legal person or arrangement.4. “Risk-based approach” (RBA) shall mean financial leasing enterprises should identify, assess and understand the money laundering and terrorist financing (ML/TF) risks to which they are exposed and take appropriate anti-money laundering and countering terrorist financing (AML/CFT) measures commensurate with those risks in order to effectively mitigate them. Based on the RBA, financial leasing enterprises should take enhanced measures for higher risk situations, and take relatively simplified measures for lower risk situations to allocate resources efficiently, and use the most appropriate and effective approach to mitigate the identified ML/TF risks.A financial leasing enterprise conducting financial leasing transactions shall undertake customer due diligence (CDD) measures, perform enhanced due diligence (EDD), ongoing transaction monitoring and keep relevant records in accordance with Article 3 to Article 11.The enterprise shall report the transactions to the Investigation Bureau, Ministry of Justice pursuant to Article 12 and Article 13.