Taiwan Cracks Down on Money Laundering: Report Highlights Online Gaming and Virtual Assets as New Threats
Taiwan Releases 2021 National Money Laundering, Terrorism Financing, and Proliferation Financing Risk Assessment Report
The Taiwanese government has released its 2021 National Money Laundering, Terrorism Financing, and Proliferation Financing Risk Assessment Report, highlighting a comprehensive effort to combat financial crimes. The report reveals that 47 government departments and regulatory agencies, along with 27 private sector organizations, contributed data to identify vulnerabilities in the financial system.
New Threats Emerge
The report highlights new threats from:
- Online gaming
- Virtual assets such as cryptocurrencies
- Art auction market
- Automobile sales
- Pawn shops
These sectors have become increasingly popular in recent years, making them attractive targets for money launderers.
Taiwan’s Efforts to Combat Money Laundering
Taiwan’s Minister of Justice, Tsai Ching-hsiang, emphasized that the country has consistently received top ratings from the Asia/Pacific Group on Money Laundering (APG) for its efforts to combat international money laundering and terrorism financing. The report reveals that Taiwan is most vulnerable to 10 forms of criminal activities, including:
- Drug trafficking
- Financial fraud
- Smuggling
- Tax evasion
- Organized crime
High-Risk Areas Identified
The Anti-Money Laundering Office’s Executive Secretary, Su Pei-yu, presented the report’s main findings, indicating that domestic banks, offshore banking units, and virtual asset sectors are at “very high risk” of being targeted by criminal groups. Other high-risk areas include:
- International stock market and securities businesses
- E-gaming companies
- Foreign banks with branch offices in Taiwan
- Post offices
- Domestic securities companies
- Accounting firms
- Gold and jewelry dealers
- Legal offices
- Real-estate companies
- Insurance firms
- Third-party payment services
- Agricultural cooperatives that provide financing and loans
Report’s Impact on the Financial Sector
Financial Supervisory Commission Vice Chairperson Hsiao Tsuey-ling emphasized the importance of the report in providing valuable data for Taiwan’s financial services sector. The report will enable banks, securities investment firms, and insurance companies to monitor transactions and activities with a high risk of money laundering or other illegal financing.
Conclusion
The Taiwanese government’s efforts to combat money laundering and terrorism financing demonstrate its commitment to maintaining a robust financial system and protecting the country from criminal activities.