Financial Crime World

Taiwan Takes Steps to Combat Money Laundering and Terrorist Financing

Strengthening Anti-Money Laundering Regime

In a move to align with international standards, Taiwan has implemented various measures to combat money laundering. The Ministry of Justice forwards requests for mutual legal assistance from foreign countries to the relevant prosecutors’ office.

International Cooperation

Taiwan has amended its laws and agreements to comply with United Nations Security Council Resolutions (UNSCRs) 1267 and 1373 on combating the financing of terrorism. The country has also a mutual legal assistance agreement (MLAA) with the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States, enabling cooperation between law enforcement agencies on cases related to:

  • Narcotics trafficking
  • Money laundering
  • Other financial crimes

Combating Counterfeiting and Fraudulent Activities

Taiwan has also been dealing with the possession, distribution, and use of counterfeit U.S. Federal Reserve Notes and fraudulent U.S. Bonds. In 2009, the United States Secret Service continued ongoing investigations involving over $4 million in counterfeit currency and seized $75.5 billion in fraudulent U.S. Bonds.

Cross-Strait Remittances

Regarding U.S.-related currency transactions, direct two-way remittance of funds between Taiwan and mainland China began in February 2009. However, due to a lack of mechanism for cross-Strait settlement of Renminbi (RMB) and New Taiwan Dollar (NT$) currencies, cross-Strait remittances are currently denominated in U.S. dollars.

Membership in the Asia/Pacific Group on Money Laundering

Taiwan is also a member of the Asia/Pacific Group on Money Laundering (APG), a regional body that aims to combat money laundering and terrorist financing. The country has enacted domestic legislation to implement international standards and is working to improve its anti-money laundering regime.

Recommendations for Improvement

  • Passing legislation to criminalize terrorism and terrorist financing as an autonomous crime
  • Exerting more authority over nonprofit organizations
  • Strengthening the existing anti-money laundering regime
  • Abolishing shell companies
  • Enhancing investigations of underground finance and trade fraud