December 2018
Interpretation on strengthening the mechanisms of insurance-related institutions in mainland China of insurers, insurance agent companies, insurance broker companies and insurance survey companies in Taiwan to prevent money laundering and combat terrorist financing (Taiwan)
2018.10.2
Grace Chiang
The Financial Supervisory Commission issued the Jin-Guan-Bao-Zong-10704565280 Ruling of October 2, 2018 (hereinafter, the "Ruling") to strengthen relevant control mechanisms of the branch offices, subsidiaries and invested insurance-related institutions in mainland China of insurers, insurance agent companies, insurance broker companies and insurance survey companies in Taiwan to prevent money laundering and combat terrorist financing.
According to this Ruling, if the branch offices, subsidiaries or equity invested insurance-related institutions in mainland China of insurers, insurance agent companies, insurance broker companies and insurance survey companies in Taiwan violate any provisions, for preventing money laundering and combating terrorist financing, under Article 25, Paragraph 1, Subparagraphs 8 through 11 and Article 33, Paragraph 1, Subparagraphs 9 through 10 of the Regulations Governing Permission of Insurance Business Transactions and Investment Between the Taiwan Area and the Mainland Area when the competent authority shall be reported immediately, reporting shall be made in accordance with the time period and procedures set forth in the Applicable Objects in the Scope of Major Accidental Incidents Reported by Insurance Enterprises.
It was further pointed out in this Ruling that before a Taiwan insurer, insurance agent company, insurance broker company, or insurance survey company invests in insurance-related institutions in mainland China, the capability, experience and legal compliance of the institutions to be invested in carrying out anti-money laundering and anti-terrorist financing tasks shall be assessed and considered. The anti-money laundering and anti-terrorist financing status of such institutions shall be continuously monitored after investment, and shall be covered in the internal audit and control systems.
Grace Chiang
The Financial Supervisory Commission issued the Jin-Guan-Bao-Zong-10704565280 Ruling of October 2, 2018 (hereinafter, the "Ruling") to strengthen relevant control mechanisms of the branch offices, subsidiaries and invested insurance-related institutions in mainland China of insurers, insurance agent companies, insurance broker companies and insurance survey companies in Taiwan to prevent money laundering and combat terrorist financing.
According to this Ruling, if the branch offices, subsidiaries or equity invested insurance-related institutions in mainland China of insurers, insurance agent companies, insurance broker companies and insurance survey companies in Taiwan violate any provisions, for preventing money laundering and combating terrorist financing, under Article 25, Paragraph 1, Subparagraphs 8 through 11 and Article 33, Paragraph 1, Subparagraphs 9 through 10 of the Regulations Governing Permission of Insurance Business Transactions and Investment Between the Taiwan Area and the Mainland Area when the competent authority shall be reported immediately, reporting shall be made in accordance with the time period and procedures set forth in the Applicable Objects in the Scope of Major Accidental Incidents Reported by Insurance Enterprises.
It was further pointed out in this Ruling that before a Taiwan insurer, insurance agent company, insurance broker company, or insurance survey company invests in insurance-related institutions in mainland China, the capability, experience and legal compliance of the institutions to be invested in carrying out anti-money laundering and anti-terrorist financing tasks shall be assessed and considered. The anti-money laundering and anti-terrorist financing status of such institutions shall be continuously monitored after investment, and shall be covered in the internal audit and control systems.
