Korea’s Financial Supervisory Service said Thursday it will examine HSBC and Standard Chartered Bank’s Seoul branches over money laundering cases allegedly involving the British banks.

HSBC’s U.S. office is currently under investigation, accused of offering money laundering channels to hide transactions for terrorists and weapons dealers. The British bank’s Mexico office paid a fine of $27.5 million last month for not reporting on a suspicious transaction considered to have been involved in drug dealing, according to FSS.

The New York branch of SC Bank is also under investigation, accused of scheming with financial transaction-restricted nations including Iran.

FSS officials said that it will examine if the Seoul branches of the banks reported any suspicious transactions including those with restricted countries, and also if it fulfilled its responsibility to check the customers.

By Park Min-young  (claire@heraldcorp.com)