2017-04-24
Money Laundering
Taiwan has been made aware of the issue of money laundering after the Asia/Pacific Group (APG) on Money Laundering placed Taiwan on a “watch list” in 2007 and the Mega Bank scandal, in which the US Department of Financial Services (DFS) issuing sanctions on Mega Bank for violating the money laundering reporting requirements. At the end of 2016, the Money Laundering Control Act (MLCA) in Taiwan was amended to address the “40 Recommendations” issued by the Financial Action Task Force (FATF), which is well respected in the international community.
According to Article 5, Paragraph 3 of the amended MLCA, non-financial institutions and personnel such as attorneys, notaries, and accountants are subject to certain requirements when they prepare for or carry out transactions for their clients in connection with the following activities:
• buying and selling real estate;
• managing client money, securities, or other assets;
• management of bank, savings, or securities accounts;
• organization of contributions for the creation, operation or management of companies;
• creation, operation or management of legal persons or arrangements, and the buying and or selling of business entities.
The amended MLCA will become effective on 28 June 2017, and the Taiwan Financial Supervisory Commission (FSC) has published in April 2017 a draft of the “Regulations Governing Money Laundering Control for Accountants” and the “Notice Relating to Money Laundering Controls for Accountants” to further elaborate on the timing, content, and methods related to the reporting requirement, data keeping requirement, and know-your-client requirements. The FSC will further announce regulations and notices for lawyers and notaries before the amended MLCA takes effect.
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