Financial Crime World

Laundering Control Act: New Regulations Take Effect

February 6, 2007 - Taipei, Taiwan

The Financial Supervisory Commission (FSC) has implemented new regulations aimed at strengthening anti-money laundering (AML) measures in Taiwan’s financial sector.

Strengthened AML Measures

Effective immediately, the revised “Regulations Regarding Article 7 of the Money Laundering Control Act” require financial institutions to:

  • Confirm the identity of any person transferring funds to a futures margin account opened with the institution by a securities firm or Futures Commission Merchant (FCM)
  • Retain records on remittances to facilitate verification and prevent fraudulent activities

Enhanced Customer Due Diligence and Record-Keeping Requirements

The FSC has also amended regulations governing securities and futures businesses, including:

  • “Regulations Governing Securities and Futures Brokers”
  • “Regulations Governing Futures Merchants”

These amendments aim to enhance customer due diligence and record-keeping requirements under Articles 7 and 8 of the Money Laundering Control Act.

Targeted Examinations and Training Programs

The FSC will:

  • Conduct targeted examinations on banks with a relatively large number of watch-listed accounts
  • Provide AML training programs and technical assistance initiatives, including:
    • Seminars for associated persons and auditors of securities brokers and futures merchants
    • On-the-job training sessions
    • Technical assistance from international organizations such as the Financial Action Task Force (FATF)

Future Plans

The FSC plans to:

  • Continue working with related associations to revise their checklists of money laundering prevention guidelines and procedures for financial institutions
  • Strengthen supervision over all financial institutions regarding their implementation of customer due diligence and record-keeping under Articles 7 and 8 of the Money Laundering Control Act

Conclusion

The new regulations are designed to bring Taiwan’s AML measures more in line with international standards, ensuring a safer and more transparent financial environment for investors.