1.Date of penalty: 2019/9/16

2.Subject of penalty: Global Securities Finance Corporation

3.Legal reference of penalty: Paragraph 5 in Article 10 of the Money Laundering Control Act, Sub-paragraph 1 in Article 15 of the Regulations Governing Anti-Money Laundering of Financial Institutions.

4.The facts: the company failed to pay close attention to cases of serious consequences reported by the news media to confirm if the parties involved in these cases are its customers thereby intensifying the reporting on suspicious transactions. Or, the company failed to review and customers when there is significant change in the information on the identity and background of the customers and reassess the risk of money laundering, which is a violation of applicable laws governing anti-money laundering.

5.The results of punitive action: According to Paragraph 5 in Article 10 of the Money Laundering Control Act, the company will be subject to a fine amounting to NT$500,000. Corrective action is also ordered pursuant to Article 18 -1 of the Securities and Exchange Act where Article 39 of the same law is applicable.