Taiwan’s Fight Against Money Laundering: Report Highlights Progress, Areas for Improvement

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A recent assessment by the Financial Action Task Force (FATF) has evaluated the anti-money laundering and combating financing of terrorism (AML/CFT) measures in Chinese Taipei, yielding a mixed bag of results. As of November 2018, Taiwanese authorities have made significant strides in implementing AML/CFT regulations, but further strengthening is needed to ensure the system’s effectiveness.

Assessment and Findings

The assessment, conducted by FATF experts, analyzed Taiwan’s compliance with the organization’s 40 Recommendations and evaluated the overall performance of its AML/CFT framework. While Taiwan has taken steps to enhance its regulatory environment, there are still areas where improvement is required.

Strengths

• Implementing customer due diligence measures
• Monitoring suspicious transactions

Weaknesses

• Risk-based approach implementation, particularly in high-risk industries

Priority Actions for Improvement

FATF has outlined the following priority actions for Taiwan to take:

• Strengthen its legal framework
• Enhance information sharing between financial institutions
• Increase transparency in beneficial ownership requirements

Conclusion and Recommendations

The Taiwanese government is urged to prioritize the implementation of these recommendations to further bolster its AML/CFT regime and maintain a strong reputation as a responsible player in the global financial system.

Importance of Implementation

Implementing these recommendations is crucial for Taiwan to:

• Enhance its anti-money laundering and combating financing of terrorism measures
• Demonstrate its commitment to international cooperation and best practices
• Maintain its position as a responsible player in the global financial system