Taiwan Cooperative Bank Fined for Money Laundering Lapses in Handling Runyu Group Transactions

October 17, 2019

In a significant enforcement action against financial institutions in Taiwan, the Taiwan Cooperative Bank has been penalized for failing to comply with proper anti-money laundering procedures when handling transactions for the Runyu Group.

Violation of Money Laundering Control Act

The Financial Supervisory Commission (FSC) found that the bank’s credit checking, remittance, and deposit operations related to the Runyu Group did not meet the required Customer Due Diligence (CDD) procedure and ongoing monitoring standards, as stated in Paragraph 1 of Article 7 of the Money Laundering Control Act.

Penalty Imposed

As a result of these shortcomings, the Taiwan Cooperative Bank faced a fine of NT$500,000 under Paragraph 5 of Article 7 of the Money Laundering Control Act.

FSC’s stance on Anti-Money Laundering Measures

An FSC spokesperson commented on the serious consequences that can arise from financial institutions not upholding strict anti-money laundering measures. They reaffirmed the commission’s commitment to eradicating such behavior and preventing Taiwan from becoming a hub for illicit transactions.

Runyu Group - A Taiwan-based Business Group

The Runyu Group, which was not identified further in the announcement, is reportedly a Taiwan-based business group with significant financial dealings.

Lessons for Financial Institutions

This incident serves as a reminder for financial institutions in Taiwan to ensure robust money laundering controls and adhere to the regulations set forth by the FSC.