InterviewCustoms officer uncovers $272 mil. illegal remittances via fintech loophole

Lee Myeong-ku, left, commissioner of the Korea Customs Service (KCS), stands with Ahn Dan-bi, an official at Seoul Regional Customs, who was named customs officer of the month for March, at Government Complex Daejeon, Monday. Courtesy of KCS

Ahn Dan-bi, an official at Seoul Regional Customs, detected about 400 billion won ($272 million) in illicit overseas remittances by cracking down on a fintech-based small-value money transfer operator, marking the first case of its kind, the Korea Customs Service (KCS) said Thursday.

In recognition of her role in shutting down money-laundering channels tied to cross-border crimes, the KCS selected her as its “customs officer of the month” for March and presented the award Monday.

In an interview with The Korea Times, Ahn said the case was particularly challenging because it differed from conventional crackdowns on illegal remittances. While past investigations typically targeted unregistered operators engaged in underground or alternative remittance services, this case required authorities to probe the internal systems of a legally registered small-value remittance firm.

“On the surface, the company appeared to comply with per-transaction and annual transfer limits,” she said. “In reality, however, large sums were being sent overseas through a structure involving duplicate accounts and accounts under borrowed names, effectively splitting transactions to bypass limits.”

“Each individual transaction looked normal, but a comprehensive analysis of the data revealed an abnormal structure. Proving the illegal remittance scheme was the most difficult part,” she added.

The decisive clue came from identifying unusual transaction patterns. She found that about 1,000 accounts were linked to a single mobile phone number, and those accounts repeatedly sent funds to the same overseas recipient. While each account stayed within regulatory limits, collectively they enabled a single individual to exceed the cap.

She also flagged transactions involving amounts that appeared inconsistent with the senders’ occupations, age groups and visa types, further raising suspicions.

“Tracing these suspicious accounts to the end and analyzing their patterns provided the breakthrough in uncovering the large-scale operation,” she said.

The case is seen as significant in curbing the flow of illicit funds tied to cross-border crimes such as voice phishing.

Ahn stressed that the incident demonstrates how deregulation aimed at fostering the fintech industry can be exploited for criminal purposes.

“It will serve as a catalyst for greater self-regulation across the industry and help narrow the channels through which illicit funds move,” she said. “This award represents not just my achievement but that of the entire team. It also reinforces my sense of responsibility to continue doing my best in my work.”