Financial Crime World

Chinese Taipei’s Fight Against Money Laundering and Terrorist Financing: Progress Made, but Room for Improvement

Date: March 2023

According to a recent assessment by the Asia-Pacific Group on Money Laundering (APG), Chinese Taipei has made significant progress in its efforts to combat money laundering (ML) and terrorist financing (TF). However, despite these advances, there are still areas that require improvement.

Chinese Taipei’s legal and institutional framework for combating ML and TF is robust. The country has established a system for detecting and preventing suspicious transactions, and its financial intelligence unit (FIU) is well-equipped to analyze and disseminate information to law enforcement agencies.

Areas for Improvement

However, the APG report identifies several areas where Chinese Taipei can improve:

  • Supervision and Implementation of Preventive Measures: While financial institutions are required to implement anti-money laundering (AML) controls, there are concerns that some may not be fully effective.
  • Prosecution of ML Cases: The number of convictions remains low compared to the number of investigations and seizures. Chinese Taipei’s authorities need to prioritize the prosecution of ML cases and ensure that those convicted receive appropriate sentences.
  • Targeting Cash Couriers: Chinese Taipei needs to strengthen its efforts to detect and disrupt cash courier activities, which are often used by criminals to launder money.

Progress in Combating Terrorist Financing

Despite these challenges, Chinese Taipei has made significant progress in combating TF. The country’s authorities have investigated several cases involving suspected terrorist financing, and there is evidence that some individuals have been successfully prosecuted and sanctioned.

Recommendations

To further improve its fight against ML and TF, Chinese Taipei should:

  • Strengthen supervision and implementation of preventive measures by financial institutions
  • Prioritize the prosecution of ML cases and ensure that those convicted receive appropriate sentences
  • Target cash couriers more effectively to disrupt money laundering activities
  • Continue to prioritize combating TF and work to strengthen systems for detecting and preventing suspicious transactions

Conclusion

Chinese Taipei has made significant progress in combating ML and TF, but there are still areas where improvement is needed. The country’s authorities must continue to prioritize these issues and work to strengthen their systems for detecting and preventing suspicious transactions. With continued effort and cooperation with international partners, Chinese Taipei can further improve its fight against ML and TF.