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Taiwan Enhances Anti-Money Laundering Regulations
Taiwan is making strides in bolstering its anti-money laundering regulations through significant amendments to its Money Laundering Control Act. These amendments are designed to bring the island’s laws in line with international standards established by the Asia/Pacific Group on Money Laundering (APG).
The primary focus of the amendments is to ensure that virtual assets and virtual asset service providers are firmly placed under the oversight of Taiwan’s anti-money laundering regime. To achieve this, the revised law introduces clear definitions for “virtual assets” and “virtual asset service providers,” addressing previous regulatory gaps.
Under the new regulations, virtual asset service providers are required to register with the authorities for anti-money laundering purposes and demonstrate their service capabilities. Non-compliance with these requirements will result in severe criminal penalties. Moreover, designated non-financial businesses or individuals who violate the regulations may face significantly higher fines, with penalties being imposed per violation.
Combatting Cross-Border Money Laundering
In a bid to combat cross-border money laundering, the amendments mandate that individuals entering or leaving Taiwan must declare any foreign currencies, Hong Kong or Macau-issued currencies, New Taiwan Dollars, securities, gold, or other specified items above a certain threshold. Customs authorities have been granted the authority to seize any undeclared amounts that exceed the specified limit.
To promote self-regulation within the corporate sector, the revised law increases fines for companies involved in money laundering activities while also offering exemptions from liability for those that have implemented preventive measures. Additionally, individuals who voluntarily surrender illicit gains and assist in investigations may be eligible for sentence reductions.
The strengthening of Taiwan’s anti-money laundering laws comes as the island addresses deficiencies highlighted in previous evaluations by the APG. By extending regulatory oversight to the digital assets sector and fostering better corporate governance practices, Taiwan aims to enhance the resilience of its financial system against the threats of money laundering as it continues to deepen its integration with the global economy.
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