BNK Investment & Securities restricts transfers, withdrawals on dormant and closed corporate accounts

BNK Investment & Securities announced Wednesday it would tighten anti-fraud measures by restricting transfers, withdrawals and withdrawal limits on corporate accounts belonging to dormant or closed businesses — accounts considered at high risk of exploitation for financial crimes such as account lending and voice phishing.

The measures draw on the National Tax Service's business suspension and closure inquiry system to proactively manage accounts held by companies that have effectively ceased operations, blocking the possibility of misuse for fraud before any crime occurs.

Corporate accounts left inactive after a business closes can fall into neglect over time. As financial fraud schemes grow increasingly sophisticated, concerns have mounted that such accounts could be exploited for crimes including the creation and retail of "burner" accounts in the name of defunct companies, as well as money laundering.

In response, BNK Investment & Securities plans to restrict transfers, withdrawals and withdrawal limits on accounts confirmed as belonging to suspended or closed businesses, reducing the likelihood they will be used for fraud. However, if a company resumes normal business activity or demonstrates a legitimate need for financial transactions, it may have the restrictions lifted by submitting supporting documents and completing a verification process, minimizing inconvenience to lawful account holders.

BNK Investment & Securities said it would also continue proactive prevention efforts for high-risk corporate accounts, including ongoing monitoring of transaction patterns and active use of its Fraud Detection System.