Financial Crime World

Taiwan, Province of China: Strengthening Financial Crimes Prevention through Money Laundering Control Act

The Money Laundering Control Act of Taiwan was enacted on October 23, 1996, and has undergone several amendments to enhance its provisions against money laundering and related serious crimes. This Act aims to prevent and eradicate the proceeds of criminal activities from circulating in the financial system.

Purpose and Scope

  • Article 1: Outlines the purpose of the Act, which is to regulate money laundering activities and eradicate related serious crimes.
  • Article 2: Defines money laundering as the concealment or disguise of property obtained from a serious crime or complicity in laundering activities.

Serious Crimes and Applicability

  • Article 3: Lists serious crimes, including those with minimum punishments of five years or more and crimes specified in various articles of the Criminal Code and other relevant laws.
  • Article 5: Applies to various financial institutions, including banks, securities firms, insurance companies, and postal services; jewelry retail businesses and other institutions likely to be used for money laundering are also included.

Compliance and Reporting

  • Article 6 and 7: Financial institutions are required to establish anti-money laundering guidelines, train employees, and keep transaction records for certain currency transactions.
  • Article 8: Authorities can be notified of suspected money laundering activities, and financial institutions are granted immunity if they act in good faith.

Freezing and Seizure

  • Article 9: Authorities have the power to freeze money laundering transactions at the prosecutor’s and court’s discretion.
  • Article 10: Travelers and service staff on public transportation must make declarations and report specific items.

Penalties and Consequences

  • Article 11: Penalties for money laundering activities include imprisonment, fines, and asset forfeiture.
  • Article 14: Seized or confiscated property may be distributed for official use or to foreign governments, institutions, or international organizations.

Additional Provisions

  • Article 11: Reduces sentences for those involved in money laundering to conceal serious crimes committed by their relatives, spouses, or joint property owners.
  • Article 15: Public officials or employees who reveal information about reported suspect financial transactions face imprisonment.

This Money Laundering Control Act of Taiwan is critical in preventing and eradicating money laundering activities and related serious crimes. It protects the integrity of the financial system and fulfills international obligations from reciprocal treaties and agreements.