May 9, 2024
Taiwan Strengthens AML Regulations
Latest Cryptocurrency News

Taiwan Strengthens AML Regulations to Combat Fraud

Amendment Proposal by Taiwan’s Ministry of Justice

Taiwan has introduced amendments to its regulations to bolster its anti-money laundering (AML) measures and curb fraudulent activities. The amendments, proposed by Taiwan’s Ministry of Justice, are set to impose stricter penalties on non-compliant firms and enhance AML measures for virtual asset service providers (VASPs).

Proposed Amendments Overview

Under the proposed amendments, non-compliant firms could face up to two-year jail terms and fines of up to $1.5 million. The amendments, collectively termed the “New Four Laws to Combat Fraud,” are now headed to Taiwan’s national parliament for review.

Key Components of the Amended Regulations

The amendments target four critical components: fraud, crime, and harm prevention regulations; money laundering prevention law; technology investigation and security law; and communications security and supervision law. Notably, the revised money laundering prevention law specifically addresses VASPs, imposing harsh penalties for noncompliance.

Impact on VASPs and Third-Party Offenses

The amended laws introduce stricter registration requirements and limitations for both domestic and international currency dealers. VASPs risk up to two years in prison for operating without proper registration. Additionally, a new legal category addresses money laundering offenses involving third-party payment accounts and virtual asset accounts, with penalties including jail terms of six months to five years and fines up to $1.5 million.

Future Goals

The proposed amendments signify Taiwan’s commitment to combating financial crimes, particularly in the realm of virtual assets. By aligning with global AML standards and enhancing regulations for VASPs, Taiwan aims to create a more secure financial environment while deterring fraudulent activities. The upcoming parliamentary review will shed more light on the potential impact and implementation timeline of these crucial regulatory changes.

Image by freepik

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