Promulgation of the “Regulations Governing Anti-money Laundering and Countering Terrorism Financing ofFinancial Technology Innovative Experimentation”
On January 31, 2019, the FSC approved two innovative experiments for cross-border, small-amount remittance of migrant workers by nonfinancial institutions. Considering that Fintech innovative experiments are diverse and thus subject to different regulations governing antimony laundering and countering terrorism financing activities, the competent authority needs to enact regulations specific to each innovative experiment it approves. Therefore, the FSC promulgated the aforementioned Regulations on May 15, 2019 authorized by Paragraph 2 of Article 25 of the Financial Technology Development and Innovative Experimentation Act and based on the characteristics of the aforementioned two innovative experiments for compliance of the related enterprises. The key points of the aforementioned
Regulations are as follows:
1. The applicant shall comply with the aforementioned Regulations and the approved innovative experimentation plan in regard to the anti-money laundering and countering terrorism financing activities (financial institutions are still required to comply with the regulations governing anti-money laundering activities of financial institutions).
2. The applicant shall introduce and implement participant ID verification measures and ongoing due diligence mechanism, have measures in place considering in what circumstance to refuse to do business or make transactions with participants, and determine how strict the related measures should be with a riskbased approach.
3. The policies and procedures for cross-border remittance that the applicant is required to comply with were laid down. The applicant is required to prepare and preserve the information of the remitters and beneficiaries.
4. The applicant is required to introduce the watch list filtering procedures for the parties related to the transaction and the transaction monitor policy.
5. The applicant shall keep a record of transactions with the participants. The scope, method and period for preservation of such information are specified.
6. The applicant is required to create internal control and audit system for anti-money laundering activities and the competent authority may appoint officer(s) or entrust other appropriate institutions at any time to examine the implementation.
7. The scope, method and procedure for the applicant’s reporting of suspicious money laundering or terrorism financing transactions are specified.