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Third-Party Payment Enterprises Must Enhance Knowledge of Seller-Side Customers to Combat Money Laundering and Terrorist Financing

In an effort to combat money laundering (ML) and terrorist financing (TF), the Taiwanese government has issued new regulations requiring third-party payment enterprises to enhance their knowledge of seller-side customers.

Regulatory Requirements

The regulations, which went into effect on [date], require third-party payment enterprises to conduct customer due diligence (CDD) measures on existing seller-side customers and apply a risk-based approach (RBA) to determine the level of CDD required. The enterprises must also maintain records of all business relations and services with customers for at least five years or longer if required by law.

Customer Due Diligence

According to the regulations, third-party payment enterprises must gather information about their customers’ identities, business purposes, and financial activities through various means such as:

  • Official identification documents
  • Bank account files
  • Transaction records

Reporting Suspicious Transactions

The regulations require third-party payment enterprises to report suspicious transactions to the Ministry of Justice (MJIB) within two business days or immediately if the transaction is urgent.

Preventing Money Laundering and Terrorist Financing

The regulations aim to prevent ML and TF by requiring third-party payment enterprises to have a better understanding of their customers’ activities and financial situations. By doing so, the enterprises can detect and report unusual or suspicious transactions that may be linked to ML or TF.

Minister’s Statement

“We are committed to ensuring that our country’s financial system is free from criminal activities such as money laundering and terrorist financing,” said [name], Minister of Justice. “These regulations will help us achieve this goal by requiring third-party payment enterprises to enhance their knowledge of their customers and report suspicious transactions promptly.”

Additional Requirements

The regulations also require third-party payment enterprises to pay attention to the sanctions list announced by the Ministry of Justice and comply with relevant laws.

Conclusion

In conclusion, the new regulations aim to strengthen Taiwan’s efforts to combat ML and TF by enhancing the knowledge of seller-side customers among third-party payment enterprises. By doing so, the country can prevent criminal activities that threaten its financial stability and security.