Taiwan Financial Institutions Boost Security Measures Amid Growing Concerns

In response to growing concerns over the safety of their customers’ assets and the integrity of their operations, Taiwan’s financial institutions have announced a series of enhanced security measures aimed at protecting customers’ assets and ensuring business continuity.

New Regulations for Financial Institutions

According to a recent circular issued by the Bankers Association of the Republic of China in consultation with the National Federation of Credit Cooperatives, all financial institutions operating in Taiwan are required to implement comprehensive security protocols across their branches, offices, and cash transport operations. The new regulations aim to prevent potential threats and protect customers’ assets.

Key Requirements

• Conduct regular self-inspection and internal audits to ensure that security measures are effective and up-to-date.
• Implement employee training and awareness programs to prevent human errors and potential insider threats.
• Install robust entry control facilities at all entrances, implement strict access controls for vaults and safe deposit boxes, and conduct thorough background checks on new employees before hiring them.

Enhanced Security Measures

Financial institutions are also required to:

• Regularly patrol and monitor automatic teller machines (ATMs) installed both within and outside banking premises.
• Establish mechanisms for detecting and preventing irregular withdrawal activities at ATMs, and take prompt action in response to any suspicious transactions.

Reporting Material Security Events

Financial institutions are required to report material security events, such as robberies or major thefts, to the competent authority within a specified timeframe. Failure to comply with these regulations may result in penalties, including a one-year ban on establishing new branches or adding new business lines.

Scope of Material Contingencies

• Robbery
• Major theft
• Vandalism of office or equipment
• Receipt of threat

Scope of Application

All financial institutions operating in Taiwan are required to report material security events to the competent authority within a specified timeframe.