Financial Crime Reporting Requirements in Taiwan

Strengthening Financial Crime Reporting Requirements

The Taiwanese government has issued new regulations to combat money laundering and terrorist financing activities by strengthening financial crime reporting requirements. These regulations took effect on [date] and require financial institutions to report cash transactions above a certain amount to the Investigation Bureau, Ministry of Justice.

Key Requirements

• Verify the identity of customers involved in cash transactions above NT$500,000 (approximately USD $16,667)
• Keep records of the transactions
• File reports on these transactions with the Investigation Bureau within five business days after completion of the transaction

Exemptions from Reporting Requirements

• Transactions involving government agencies, state-run enterprises, and public schools
• Non-individual accounts, such as those opened by department stores or hospitals, provided that the institution verifies the actual business needs and submits a name list to the Investigation Bureau

Suspicious Transaction Reports (STRs)

• File an STR with the Investigation Bureau in cases where transactions appear suspicious
• Specific situations that may trigger an STR include:
  • Unusual patterns of cash deposits or withdrawals
  • Multiple outward remittances in a single transaction
  • Transactions involving countries or regions with serious deficiencies in their anti-money laundering and combating the financing of terrorism regimes

Filing an STR

• Prepare the report within 10 business days of discovery of the suspected transaction
• Keep records of reporting and proof of transactions for five years

Expected Impact

The implementation of these regulations is expected to enhance Taiwan’s ability to detect and prevent financial crimes, while also strengthening international cooperation in this area.