Financial Crime World

International Financial System Seeks to Stem Tide of Illegal Activity in Chinese Taipei

Combating Money Laundering and Terrorist Financing: A Major Effort by Chinese Taipei

A recent report by the Asia-Pacific Group on Money Laundering (APG) has highlighted the significant efforts made by Chinese Taipei to combat money laundering and terrorist financing. The country’s progress in establishing a robust legal and institutional framework is commendable, but there are still areas that require improvement.

A Major Hub for Predicate Offenses

Chinese Taipei is a major hub for predicate offenses such as drug trafficking, fraud, and smuggling, which generate significant proceeds. Organized crime groups are believed to be behind many of these activities, with corruption and bribery also playing a significant role.

Progress Made in Combating Money Laundering and Terrorist Financing

The APG report praises Chinese Taipei’s efforts in:

  • Establishing a range of measures to prevent the misuse of companies and arrangements
  • Strengthening supervision and enforcement powers
  • Investigating and prosecuting money laundering cases
  • Prioritizing terrorist financing investigations alongside possible terrorism cases

Areas for Improvement

However, there are still some areas where improvement is needed:

  • The financial intelligence unit (FIU) has limited human resources and struggles to keep up with the volume of suspicious transaction reports (STRs)
  • Conviction rates and sentencing for money laundering offenses need improvement
  • Resources are required to support the FIU in processing STRs

Recommendations

To further combat money laundering and terrorist financing, we recommend:

  • Increase resources to support the financial intelligence unit (FIU) in processing suspicious transaction reports (STRs)
  • Improve conviction rates and sentencing for money laundering offenses
  • Continue to prioritize terrorist financing investigations alongside possible terrorism cases
  • Enhance cooperation with other countries to share intelligence and best practices in combating money laundering and terrorist financing

Conclusion

While there is still more work to be done, Chinese Taipei’s efforts to combat money laundering and terrorist financing are significant and demonstrate a commitment to tackling these serious threats to the international financial system.