Shinhan Bank shared its practical know-how on anti-money laundering (AML) with Pacific Island nations seeking to strengthen their capabilities in this area.
The initiative followed a request from the World Bank.
By sharing advanced AML operational insights — covering areas such as overseas branch management, digital asset monitoring, and the use of artificial intelligence — the Korean bank aims to help enhance the credibility of the nations’ financial systems.
Bank shared its practical AML experience with financial officials from eight Pacific Island nations on Sept. 9 during a training program organized by the World Bank.
For Pacific Island nations, correspondent banking relationships serve as vital conduits connecting international remittances and trade finance to the global financial market.
Shinhan Bank officials share its practical know-how on anti-money laundering (AML) with those from Pacific Island nations in the AML Office of Shinhan Bank in Seoul on Sept. 9.
However, if local financial institutions are deemed to have inadequate AML systems, they may go through the de-risking process where global banks scale back or terminate business relationships to mitigate regulatory and sanction-related risks.
The World Bank views strengthening AML capabilities as a key priority for the financial sector in the Pacific region.
Consequently, the bank organized the training program to educate officials on systems aligned with international standards and to share practical expertise, such as identifying customer and transaction risks and monitoring suspicious transactions.
Notably, it recognized Shinhan Bank for its superior AML operational framework and selected it as the only commercial bank to deliver a lecture.
The lecture held at the Korea Banking Institute was attended by approximately 30 people, including key World Bank officials and representatives from the governments and central banks of the eight Pacific nations.
Shinhan Bank focused on sharing its AML and Fraud Detection System frameworks, covering areas such as Know Your Customer procedures, Currency Transaction Reports, Suspicious Transaction Reports, and the latest industry trends.
Subsequently, the training delegation visited Shinhan Bank’s headquarters in Jung-gu, Seoul, to tour the facilities and meet with key officials.
Shinhan Bank has continuously expanded its AML management system. First, it refined management standards for its overseas branches.
The bank established an internal AML checklist to assess risks associated with transnational crime and conducted direct inspections of major Southeast Asian branches based on risk levels.
The bank also shares information on AML supervisory directions and current issues with financial authorities in key overseas hubs such as Cambodia and Vietnam.
Shinhan Bank is also extending the scope of its AML monitoring to the digital asset sector.
In May, the bank became the first Korean bank to introduce an on-chain monitoring system capable of tracking the flow of funds in virtual asset transactions.
This system detects money laundering risks by analyzing transaction histories and the risk levels of wallet addresses on blockchain networks.
Moreover, Shinhan Bank will apply Generative AI to operational workflows.
The bank is pursuing an AML AI Transformation (AX) initiative, utilizing AI to assist with repetitive tasks during reviews of suspicious transactions.
Lecture for Senior Citizens in Incheon
Shinhan Bank held a special lecture for senior citizens in the Incheon area at Shinhan Hagijae Incheon on Sept. 10.
The session was organized to raise awareness about the key symptoms of dementia and the importance of early dementia detection, as well as to provide guidance on daily health management practices.
Professor Choi Su-jeong of the Department of Family Medicine at Gachon University Gil Medical Center covered topics such as early warning signs of dementia, the importance of early detection, dementia prevention through the management of chronic diseases, and daily health maintenance.
She explained professional medical information in an accessible manner tailored to the audience and introduced practical methods that can be used in real-life situations.
Shinhan Bank is continuing its financial consumer protection initiatives to support the healthy daily lives and safe financial activities of senior customers.
These efforts include AI-based detection of unusual behavior at ATMs and monitoring via the Fraud Detection System, alerts for signs of unusual financial activity by senior citizens, the memory check-up event and Shinhan SOL Mate Dementia-Free Trust.
Shinhan Bank is also extending the scope of its AML monitoring to the digital asset sector.
In May, the bank became the first Korean bank to introduce an on-chain monitoring system capable of tracking the flow of funds in virtual asset transactions.
This system detects money laundering risks by analyzing transaction histories and the risk levels of wallet addresses on blockchain networks.
Moreover, Shinhan Bank will apply Generative AI to operational workflows.
The bank is pursuing an AML AI Transformation (AX) initiative, utilizing AI to assist with repetitive tasks during reviews of suspicious transactions.
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