Financial Crime World

Taiwan Takes Steps to Combat Money Laundering and Terrorist Financing

Taipei, Taiwan - The Taiwanese government has been taking steps to improve its anti-money laundering (AML) regime and combat terrorist financing in accordance with established procedure.

The Act on Handling Foreign Court-Commissioned Cases and the Taiwan-US Agreement on Mutual Legal Assistance in Criminal Matters provide a legal framework for Taiwan to respond to requests from foreign countries that do not relate to ongoing prosecutions.

Combating Money Laundering

In 2008, Taiwan prosecuted 33 cases involving money laundering, with 19 of those cases related to financial crimes such as:

  • Unregistered stock trading
  • Credit card theft
  • Currency counterfeiting

Combating the Financing of Terrorism

Amendments to the Foreign Exchange Control Act and the Offshore Banking Act in April 2009 brought Taiwan into compliance with United Nations Security Council Resolutions (UNSCRs) 1267 and 1373 on combating the financing of terrorism.

International Cooperation and Information Sharing

Taiwan has a mutual legal assistance agreement with the United States, which provides a basis for cooperation between law enforcement agencies in investigating and prosecuting:

  • Narcotics trafficking
  • Money laundering
  • Other financial crimes

Taiwan is also able to exchange information with the Financial Crimes Enforcement Network (FinCEN).

International Cooperation and Assessments

Taiwan has signed memoranda of understanding with several countries to establish mechanisms for cooperation on AML/CFT issues. The country is a member of the Asia-Pacific Group on Money Laundering (APG) and has undergone mutual evaluations under the APG’s assessment program.

Challenges and Recommendations

Despite these efforts, Taiwan still faces challenges in implementing its AML regime. The government has been urged to:

  • Pass legislation criminalizing terrorism and terrorist financing as an autonomous crime
  • Exert more authority over nonprofit organizations
  • Strengthen its anti-money laundering regime

Offshore Jurisdictions and Blacklisting

Taiwan does not have a blacklisting system in place, and the country is not included on any major lists of countries considered to be problematic for money laundering or terrorist financing purposes.