Taiwan Takes Steps to Prevent Money Laundering: AMLD Leads the Charge

Strengthening Anti-Money Laundering Laws and Regulations

In a bid to combat the scourge of money laundering and terrorist financing, Taiwan has strengthened its anti-money laundering (AML) laws and regulations. The country’s Anti-Money Laundering Division (AMLD), established in 1997, is at the forefront of this effort.

History of AMLD and MLCA

The AMLD was set up under the Money Laundering Control Act (MLCA), passed by the Legislative Yuan in 1996. Since then, the MLCA has undergone several amendments to keep pace with international standards and best practices. The most recent revisions were made in 2018.

Preventing Money Laundering through Suspicious Transaction Reports

Taiwan’s efforts are aimed at preventing criminals from using financial institutions and designated non-financial businesses or professions (DNFBPs) as vehicles for money laundering. To achieve this, all financial institutions and DNFBPs are required to file suspicious transaction reports (STRs).

Financial Intelligence Unit (FIU)

The Financial Intelligence Unit (FIU), established in 1997, is responsible for receiving and analyzing STRs. The FIU is tasked with identifying patterns and trends in suspicious transactions and providing intelligence to law enforcement agencies.

AMLD’s Roles and Responsibilities

In addition to its role as the FIU, the AMLD is also responsible for leading Taiwan’s efforts to prevent money laundering. This includes:

• Monitoring compliance with AML regulations by financial institutions and DNFBPs
• Investigating suspicious transactions
• Working with international partners to share information and best practices

International Recognition and Support

The AMLD’s work has been recognized by the Financial Action Task Force (FATF), an intergovernmental organization that sets global standards for combating money laundering and terrorist financing. Taiwan was removed from the FATF’s monitoring list in 2012 after it implemented a comprehensive set of reforms to strengthen its AML/CT regime.

Taiwan’s efforts to prevent money laundering are also supported by international organizations such as:

• United Nations Office on Drugs and Crime (UNODC)
• Asian Development Bank (ADB)

Enhancing Cooperation with Other Countries

In recent years, Taiwan has taken steps to enhance cooperation with other countries to combat money laundering. This includes signing bilateral agreements with several countries and participating in regional AML/CT initiatives.

Conclusion

The AMLD’s work is critical to maintaining Taiwan’s financial stability and integrity. By preventing money laundering and terrorist financing, the country can protect its economy and financial institutions from the risks posed by these illicit activities.