Three Years of Good Performance Record for Taiwan Banks
Taiwan’s banking industry has made significant progress over the past three years in implementing good governance and transparency practices. As part of its efforts to promote a culture of compliance and accountability, the Financial Supervisory Commission (FSC) has introduced a set of regulations requiring banks to adhere to strict qualification standards for senior managers.
Regulations for Senior Managers
According to the regulations, relevant qualification documents must be submitted to the FSC for approval before the appointment of a general manager at a bank. Other senior managers, such as vice general managers and assistant vice general managers, are subject to other applicable qualification requirements regarding experience and expertise.
- Relevant qualification documents must be submitted to the FSC for approval
- Senior managers must meet specific experience and expertise requirements
Board of Directors
The board of directors is responsible for overseeing the overall business strategies and major policies of the bank. They also supervise senior managers and are accountable to all shareholders. Additionally, they are responsible for implementing and supervising the bank’s internal control system.
- Oversee business strategies and major policies
- Supervise senior managers
- Accountable to all shareholders
- Implement and supervise internal control systems
Remuneration Committee
Banks in Taiwan are advised to establish a remuneration committee led by independent directors. This committee is responsible for establishing performance appraisal standards and remuneration standards for managers and salespersons, as well as the remuneration structure and system for directors.
- Establish performance appraisal standards
- Set remuneration standards for managers and salespersons
- Determine remuneration structure and system for directors
Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT)
The FSC has introduced regulations governing AML and CFT. Banks in Taiwan are required to conduct due diligence on new and existing customers, properly identify and verify their identity, and keep records of all relevant information. They must also report suspicious transactions to the Investigation Bureau under the Ministry of Justice.
- Conduct due diligence on new and existing customers
- Properly identify and verify customer identity
- Keep records of relevant information
- Report suspicious transactions
Consequences of Non-Compliance
Banks that fail to comply with disclosure requirements for their annual reports may be subject to an administrative fine of between NT$500,000 and NT$10 million.
Conclusion
In conclusion, Taiwan’s banking industry has made significant progress over the past three years in implementing good governance and transparency practices. The regulations introduced by the FSC have helped promote a culture of compliance and accountability among banks in Taiwan, which is essential for maintaining public trust and ensuring the stability of the financial system.