Financial Crime World

Terrorist Abuse: Co-Operation International Key to Stopping Money Laundering in Chinese Taipei

Taipei, Taiwan - A recent report has emphasized the need for significant improvements in anti-money laundering (AML) and counter-terrorism financing (CFT) measures in Chinese Taipei. The country’s efforts to combat financial crime have been criticized as lacking, with a lack of co-operation at operational levels and inadequate supervision.

Progress Made, But Room for Improvement

According to the report, Chinese Taipei made little progress in implementing AML/CFT reforms over the past decade. However, since 2017, significant changes have been made to policy and resource allocation, leading to comprehensive reforms and large-scale implementation of the legal and institutional framework.

Strengths

  • Chinese Taipei has a good understanding of money laundering (ML) and terrorist financing (TF) risks.
  • The country’s financial intelligence unit (FIU), the Anti-Money Laundering Department (AMLD), has been commended for its analytical capability and excellent IT resources.

Areas Requiring Improvement

The report highlights several areas that require improvement, including:

Operational Co-Operation

  • Lack of co-operation at operational levels between law enforcement agencies (LEAs) and investigating prosecutors.
  • Inadequate supervision and implementation of preventive measures to prevent the misuse of legal persons and arrangements.

Preventive Measures

  • Low conviction rates and light sentences for ML offenses.
  • Underreporting of suspicious transaction reports (STRs) by higher-risk sectors.

Confiscation and Forfeiture

  • While Chinese Taipei has made progress in confiscating proceeds and instruments of crime, more can be done to target high-risk ports of entry and apply forfeiture proportionately.

Recommendations

To address these issues, the report recommends increased international co-operation and information sharing between countries. This includes:

International Cooperation

  • Sharing intelligence on ML/TF risks.
  • Best practices for combating financial crime.

Government Response

The Taiwanese government has responded to the report by committing to strengthen supervision and implementation of preventive measures, as well as improving cooperation at operational levels. The country is also working to increase public awareness of AML/CFT issues and to improve its ability to trace assets and recover stolen funds.

Quote

“We take these recommendations seriously and are committed to strengthening our AML/CFT measures to prevent terrorist abuse and money laundering. We will work closely with international partners to share intelligence and best practices to combat financial crime.”

Conclusion

The report’s findings highlight the importance of international cooperation in combating financial crime, particularly in the context of terrorism financing. By working together, countries can share intelligence and best practices to prevent the misuse of legal persons and arrangements and to recover stolen funds.