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AML/CFT Regime Established for Agricultural Financial Institutions

Taiwan Establishes Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Program for Agricultural Financial Institutions

The Council of Agriculture (COA) has announced the establishment of an AML/CFT program for agricultural financial institutions in Taiwan. The program aims to identify, assess, and mitigate money laundering and terrorist financing risks based on the institution’s business size and ML/TF risks.

Requirements for Agricultural Financial Institutions

  • Each agricultural financial institution is required to establish a screening and hiring procedure to ensure high standards when hiring employees.
  • The chief AML/CFT compliance officer, AML/CFT personnel, and AML/CFT supervisors must meet specific qualification requirements within three months of appointment/assignment.

Training Requirements for AML/CFT Personnel

  • The chief AML/CFT compliance officer, AML/CFT personnel, and AML/CFT supervisors are required to attend at least 12 hours of training on AML/CFT annually.
  • Topics covered in the training include:
    • Newly amended laws and regulations
    • Trends and typologies of ML/TF risks
    • Other relevant topics

Internal Audits and Control Systems

  • The internal audit unit must audit whether the ML/TF risk assessment and AML/CFT program meet regulatory requirements and are implemented effectively.
  • The president of each agricultural financial institution is responsible for overseeing respective units to prudently evaluate and review the implementation of internal control systems for AML/CFT.

Inspections

  • The COA may, at any time, appoint an officer or entrust an appropriate agency to conduct an inspection using a risk-based approach.
  • The inspection will include on-site and off-site inspections, and agricultural financial institutions are required to provide relevant books, documents, electronic data files, or other relevant materials as requested.

Effective Date

The AML/CFT Regulations will come into effect from the date of promulgation, aiming to strengthen the country’s efforts in combating money laundering and terrorist financing activities.