March 2024
Oli Wong and Astrid Chou
To strengthen the anti-money laundering (AML) measures in third-party payment enterprises, the Ministry of Digital Affairs (hereinafter referred to as “MODA”) has amended the “Regulations Governing Anti-Money Laundering and Countering the Financing of Terrorism for the Third-Party Payment Enterprises” (hereinafter referred to as “the Regulations”), assisting operators in fulfilling their AML obligations. The Regulations came into effect on January 22, 2024. The key amendments are outlined as follows:
1. The Regulations Stipulate AML and Service Capacity Registration Obligations (Article 5-1 of the Regulations)
Third-party payment enterprises shall submit applications and affidavits for AML and service Capacity Registration for third-party payment enterprises per the procedures and methods specified by the MODA, along with project proposals and their attachments. The competent authority will review an initial qualification based on the application documents. After the initial review, experts and scholars will be convened for a meeting review. Those who pass the review will be notified and announced by the MODA. Operators who had already passed the review and announcement by the MODA when the “Instructions for Third-Party Payment enterprises’ AML and service Capacity Registration” were announced in 2023 are not required to reapply.
Failure to complete the registration as required and provide third-party payment enterprises to the public will result in the MODA issuing an improvement order within a specified period under Article 6, paragraph 4 of the Money Laundering Control Act. Failure to improve by the deadline may result in fines ranging from NT$50,000 to NT$1,000,000.
2. The Regulations Stipulates Operators’ Cooperation Obligations: (Article 5, paragraphs 4 and 5 of the Regulations)
Regarding implementing AML and counter-terrorism financing measures in third-party payment enterprises, the MODA has added provisions allowing it to dispatch personnel or commission appropriate institutions to conduct inspections at any time. The MODA may designate or require operators to commission specialized professionals and technicians to conduct inspections and submit reports when necessary.
Furthermore, during inspections conducted by the MODA, operators must cooperate and provide relevant evidence, and they may not evade, refuse, or obstruct inspections for any reason.
If third-party payment enterprises fail to comply with or cooperate in accordance with the regulations, the MODA will issue an improvement order within a specified period under Article 6, paragraph 5 of the Money Laundering Control Act. Failure to improve by the deadline may result in fines ranging from NT$50,000 to NT$500,000.
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