
Legal Q&A
Q
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An acquaintance asked to use my account for a short while in order to receive investment funds from an exchange located abroad. He says it is not illegal, that the amount is small, and that he will return it right away, but could this constitute a violation of financial transaction rules? I am also curious why lending my name is a problem...
violation of financial transaction rules
Answer
Published:
Author : Kuk Il KIM
The matter you asked about could constitute a violation of financial transaction rules, so a very cautious approach is necessary.
A violation of financial transaction rules is generally a transactional act that damages the normal financial order, and a representative example is opening an account in another person's name or using such an account to move funds.
If the actual owner of the money and the account holder are different, this may run afoul of the Act on Real Name Financial Transactions or the provisions prohibiting the lending of one's name under the Electronic Financial Transactions Act.
In particular, where a third party uses your account to receive investment funds, if that account is used in a crime, there is a possibility that the account holder too will be punished for aiding money laundering or as a criminal accomplice.
Even if you provided the account out of simple goodwill, it is regarded as an act that nullifies the real-name verification principle of financial institutions, so it is difficult to avoid liability for a violation of financial transaction rules.
Such cases of name lending are frequently used in voice phishing, illegal money exchange, and crimes involving virtual assets, and where investigative agencies cannot verify the details of a transaction, they have a strong tendency to hold the account provider criminally liable as well.
Even if the amount is small and there was no unlawful intent, where there is a structure of remittance and recovery without any actual transaction, a formal violation may be established, so it is advisable to firmly refuse the acquaintance's request.
Because you should clearly determine in advance whether there is a violation of financial transaction rules and, depending on the situation, also consider the possibility of judicial measures, if you have been exposed to a similar case or have already provided your account, we recommend promptly consulting an attorney specializing in finance at Daeryun Law LLC.

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Kuk Il KIM
T. 070-5117-2950
Experience as Chief Prosecutor at the Seoul High Prosecutors' Office · Attorney Specializing in Criminal Law/Drugs/Intellectual Property
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