The Financial Supervisory Commission promulgated the Regulations Governing Anti-money Laundering of Financial Institutions (hereinafter, the “Regulations”) via the Jin-Guan-Yin-Fa-10702745220 Directive of November 14, 2018. Consisting of 16 articles, the Regulations as amended came into effect on the day of their promulgation. Below are certain highlighted amendments:
1. For the threshold that customer identity verification is required for occasional transactions, the previous provision was limited to occasional “currency” transactions in excess of NT$500,000. The amended Article 3 of the Regulations has included occasional “non-currency” transactions over NT$500,000 as well.
2. To follow the international money laundering prevention standards concerning a financial institution’s determination of whether customers are politically exposed persons (PEPs). Article 10 of the Regulations is amended to require financial institutions, upon confirming such persons, to leverage appropriate risk management mechanisms as well to prevent the financial institutions’ excessive reliance on the database.
3. With respect to the reporting deadline for suspicious money laundering or terrorist financing transactions, international anti-money laundering prevention standards and practices are referenced in amending Article 15 of the Regulations. The amended Article 15 of Regulations requires that in case the monitoring conditions for money-laundering or terrorist financing are met or in the event of any irregularity, a financial institution must promptly complete its review to determine if the transaction is a suspicious money-laundering or terrorist financing transaction. In case of a suspicious money-laundering or terrorist financing transaction as a conclusion, it shall be reported promptly within 2 business days after being submitted to a dedicated supervisor for approval.