Anti‐money laundering activities of financial institutions in Taiwan

Abstract

Discusses the history, content and shortcomings of the 2003 Money Laundering Control Act of Taiwan, with two case studies involving money laundering (by the Yeh brother and Mr Chen, and by Mr Tzeng). Begins with the history of money laundering since Taiwan opened its financial markets in 1980, culminating in the 1996 Money Laundering Control Act, which was the first specific legislation of its type ever enacted by an Asian country. Details the provisions of the 2003 Act, including the requirements for financial institutions to ascertain clients’ identities and to establish systems for detecting suspect financial transactions and preventing money laundering. Shows how the Money Laundering Prevention Center is enforcing the Act, how international cooperation is allowed for, and how institutions must operate Know Your Customer and Know Your Employee schemes. Indicates the need for still better regulations, and for improved training of financial institution employees so that the regulations can be effectively implemented.

Citation

Yu‐Feng, M. (2004), "Anti‐money laundering activities of financial institutions in Taiwan", Journal of Money Laundering Control, Vol. 8 No. 2, pp. 178-185. https://doi.org/10.1108/13685200510621172