Teresa Huang and Jack Hsieh
On September 30, 2021, the Financial Supervisory Commission (the “FSC”) promulgated the declaration documents along with the information and methods for the compliance with money laundering prevention regulations (as the table below) under Article 17, Paragraph 1 of the “Regulations Governing Anti-Money Laundering and Counter-Terrorism Financing for Enterprise Handling Virtual Currency Platform and Transaction” (the “Regulation”). This decree took effect on the date of the promulgation. Businesses that engage in any activity listed under Article 2, Paragraph 1, Sub-paragraph 1 of the Regulation (the “Virtual Currency Operation”) but fail to complete its declaration will be imposed a declaration deadline by the FSC in accordance with Article 6, Paragraph 4 of the Money Laundering Control Act. Those failing to meet the deadline is subject to a fine from NT$ 500,000 to NT$ 10 million.
|First Declaration||1. Declaration Time:
(1) Businesses registered in Taiwan that have been engaged in the Virtual Currency Operation before this decree’s enforcement shall declare no later than 2 months after this decree took effect (i.e. declare before November 30, 2021).
(2) Businesses registered in Taiwan that intend to engage in the Virtual Currency Operation shall declare before commencing such activities.
|2. Attach the following documents when declaring to the FSC:
(1) Declaration form;
(2) Declarant’s information form;
(3) Certificate of the registering authority (e.g. company registering form);
(4) Articles of incorporation and a list of directors, supervisors, and shareholders. (not required if not applicable);
(5) Description of business practices and processes;
(6) A checklist of internal control and audit system for Anti-Money Laundering and Counter-Terrorism Financing reviewed by a certified public accountant. (Those declaring no later than 2 months after this decree’s enforcement may provide this document no later than July 1, 2022)
|Revocation Declaration||Businesses shall declare their revocation within 1 month of ceasing the Virtual Currency Operation.|
The FSC indicates in this decree that it has been designated by the Executive Yuan as the central authority of money laundering prevention in the virtual currency industry and is not involved in matters such as industry governance, company management, or consumer protection etc. Therefore, the FSC is not granting any form of approval or recognition of businesses that completed the declaration under this decree.
For other relevant information, please refer to the press release of the FSC on September 30, 2021. Link: https://www.fsc.gov.tw/ch/home.jsp?id=2&parentpath=0&mcustomize=news_view.jsp&dataserno=202109300007&dtable=News