Notice of the Draft of the "Regulations Governing Anti-Money Laundering and Counter-Terrorism Financing for Enterprise Handling Virtual Currency Platform and Transaction"
2021-05-25
Press Release
May 25, 2021
Notice of the Draft of the "Regulations Governing Anti-Money Laundering and Counter-Terrorism Financing for Enterprise Handling Virtual Currency Platform and Transaction"
The Financial Supervisory Commission (FSC) has formulated the draft of the "Regulations Governing Anti-Money Laundering and Counter-Terrorism Financing for Enterprise Handling Virtual Currency Platform and Transaction" (hereinafter referred to as the "Draft Regulations") and the period of public comments shall soon begin to obtain opinions of all sectors in accordance with the Administrative Procedure Act.
According to Article 5, Paragraph 2 of the Money Laundering Control Act, the provisions governing financial institutions of this Act shall apply to enterprises handling virtual currency platform and transaction (hereinafter referred to as the "enterprises"). The regulations shall include the establishment of anti-money laundering internal control and audit systems, customer due diligence, record-keeping, reporting of currency transactions equal to or above the applicable designated threshold, and reporting of suspicious money laundering (ML) or terrorism financing (TF) transactions. The Executive Yuan designated the FSC as the competent authority of anti-money laundering activities of the enterprises and specified the scope of the enterprises on April 7, 2021. The FSC convened meetings with the representatives of the Ministry of Justice, Investigation Bureau, and operators on May 7 this year and formulated the Draft Regulations.
The Draft Regulations include 18 articles which are mainly based on the recommendations published by the Financial Action Task Force (FATF). They are summarized as follows:
1. Scope of the enterprises (enterprises registered in the Republic of China) and terminology used in the Regulations (Article 2 of the Draft Regulations).
2. Regulations requiring the enterprises to implement customer due diligence, enhanced customer due diligence, and ongoing customer due diligence (Article 3 to Article 6 and Article 8 to Article 9 of the Draft Regulations).
3. Regulations on compliance matters in virtual currency transfers (Article 7 of the Draft Regulations).
4. Regulations on record-keeping for the enterprises (Article 10 of the Draft Regulations).
5. Regulations requiring the enterprises to report currency transactions meeting or exceeding a certain amount (Article 11 of the Draft Regulations).
6. Regulations requiring the enterprises to implement ongoing monitoring of customer transactions and report suspicious money laundering or terrorism financing transactions (Article 12 of the Draft Regulations).
7. Reporting methods and procedures of the enterprise based on Article 7, Paragraph 3 of the Counter-Terrorism Financing Act (Article 13 of the Draft Regulations).
8. Implementation of the anti-money laundering and counter terrorism financing internal control and audit system of the enterprises (Article 14 to Article 16 of the Draft Regulations).
The FSC also stated that the Draft Regulation will be published in the official gazette of the Executive Yuan and the FSC website. If anyone has any comments, please visit the webpage “Notice of Draft Regulations” on the FSC “Laws and Regulations Retrieving System” website (URL: https://law.fsc.gov.tw/) and state your opinions within 14 days after the announcement.
The general explanation of the draft of the "Regulations Governing Anti-Money Laundering and Counter-Terrorism Financing for Enterprise Handling Virtual Currency Platform and Transaction" and the explanation for each article are provided herein.
Contact unit: Legal Affairs Division, Banking Bureau
Telephone: (02)8968-9625
If you have any questions, please send an email to the FSC's public opinion mailbox
(https://fscmail.fsc.gov.tw)
May 25, 2021
Notice of the Draft of the "Regulations Governing Anti-Money Laundering and Counter-Terrorism Financing for Enterprise Handling Virtual Currency Platform and Transaction"
The Financial Supervisory Commission (FSC) has formulated the draft of the "Regulations Governing Anti-Money Laundering and Counter-Terrorism Financing for Enterprise Handling Virtual Currency Platform and Transaction" (hereinafter referred to as the "Draft Regulations") and the period of public comments shall soon begin to obtain opinions of all sectors in accordance with the Administrative Procedure Act.
According to Article 5, Paragraph 2 of the Money Laundering Control Act, the provisions governing financial institutions of this Act shall apply to enterprises handling virtual currency platform and transaction (hereinafter referred to as the "enterprises"). The regulations shall include the establishment of anti-money laundering internal control and audit systems, customer due diligence, record-keeping, reporting of currency transactions equal to or above the applicable designated threshold, and reporting of suspicious money laundering (ML) or terrorism financing (TF) transactions. The Executive Yuan designated the FSC as the competent authority of anti-money laundering activities of the enterprises and specified the scope of the enterprises on April 7, 2021. The FSC convened meetings with the representatives of the Ministry of Justice, Investigation Bureau, and operators on May 7 this year and formulated the Draft Regulations.
The Draft Regulations include 18 articles which are mainly based on the recommendations published by the Financial Action Task Force (FATF). They are summarized as follows:
1. Scope of the enterprises (enterprises registered in the Republic of China) and terminology used in the Regulations (Article 2 of the Draft Regulations).
2. Regulations requiring the enterprises to implement customer due diligence, enhanced customer due diligence, and ongoing customer due diligence (Article 3 to Article 6 and Article 8 to Article 9 of the Draft Regulations).
3. Regulations on compliance matters in virtual currency transfers (Article 7 of the Draft Regulations).
4. Regulations on record-keeping for the enterprises (Article 10 of the Draft Regulations).
5. Regulations requiring the enterprises to report currency transactions meeting or exceeding a certain amount (Article 11 of the Draft Regulations).
6. Regulations requiring the enterprises to implement ongoing monitoring of customer transactions and report suspicious money laundering or terrorism financing transactions (Article 12 of the Draft Regulations).
7. Reporting methods and procedures of the enterprise based on Article 7, Paragraph 3 of the Counter-Terrorism Financing Act (Article 13 of the Draft Regulations).
8. Implementation of the anti-money laundering and counter terrorism financing internal control and audit system of the enterprises (Article 14 to Article 16 of the Draft Regulations).
The FSC also stated that the Draft Regulation will be published in the official gazette of the Executive Yuan and the FSC website. If anyone has any comments, please visit the webpage “Notice of Draft Regulations” on the FSC “Laws and Regulations Retrieving System” website (URL: https://law.fsc.gov.tw/) and state your opinions within 14 days after the announcement.
The general explanation of the draft of the "Regulations Governing Anti-Money Laundering and Counter-Terrorism Financing for Enterprise Handling Virtual Currency Platform and Transaction" and the explanation for each article are provided herein.
Contact unit: Legal Affairs Division, Banking Bureau
Telephone: (02)8968-9625
If you have any questions, please send an email to the FSC's public opinion mailbox
(https://fscmail.fsc.gov.tw)
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Update：
2021-07-20