I.    Date of sanction: February 9, 2023
II.    Object of sanction: Masterlink Securities Co., Ltd.
III.    Legal basis for sanction: Subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and paragraph 2, Article 2 of the Regulations Governing Securities Firms.
IV.    Facts of violation: The Financial Examination Bureau of the FSC conducted a general business inspection on the sanctioned party, and found that the internal staff of the sanctioned party did not open accounts with the securities firm to which they belong in accordance with the regulations; no credit investigation and verification procedures were conducted where the total amount of trading consigned by a customer on the same day exceeded the approved maximum amount of trading or investment capacity on a single day; the associated persons used the intranet address (IP) of the firm to execute consignment trading of securities for customers; where a customer participates in the public subscription through electronic order placement at the same IP, no verification was carried out on whether the subscriber illegally used the name of another person; in handling the operations of anti-money laundering and countering terrorism financing, no customer risk level review and transaction check procedures were implemented for the firm's existing customers; no customer identity data review and risk assessment were conducted for the new brokerage credit accounts of existing customers; there were cases of exceeding the prescribed risk level review period in the evaluation of customers with general risk level. All the above indicates that the sanctioned party has not implemented its internal control system and has violated the provisions of paragraph 2, Article 2 of the Regulations Governing Securities Firms.
V.    Sanction imposed: A fine of NT$480,000 is imposed on Masterlink Securities Co., Ltd. in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act.