Taiwan looks to clean up its act on money laundering
After the State Administration of Taiwan, Mega Financial Holding Co, was sentenced to a fine of $ 180 million by US authorities for lax standards against money laundering at its New York branch, the bank began A rigorous training program for its staff.
Now as Mega Financial, companies around Taiwan are working to get the staff and systems are accelerated after the island passed laws consistent with international standards against money laundering and was delisted From Asia-Pacific group of money laundering.
"Unfortunately, Taiwan has earned a name as a money laundering paradise," said Deputy Minister of Justice Tsai Pi-chung.
Money laundering and cybercrime connections in Taiwan, which is also advancing a cybersecurity bill, have become the global leader.
Some money from the $ 170 million cybercombo from India Bank of India Union was transferred through the Chinese Bank SinoPac. A network of international crimes used malware to steal 2.6 million dollars from the first bank in Taiwan.
Taiwan was one of the six most targeted countries in the Wannacry rannies attack earlier this year, according to Avast security company.
Since 2011, 800 people from mainland China and Taiwan have been expelled from Cambodia for suspicion of telecommunications fraud.
As a result of his fine in the United States, Mega Financial said that cleaning up his act was a priority.
US authorities said the Mega branch had been "indifferent" to the risks associated with transactions involving Panama, a high-risk area for money laundering.
"What happened at our New York branch was terrible," said Robert Tsai, Senior Executive Vice President, referring to the fine and resulting scandal.
"Half of our 6,000 employees have been certified with money laundering training, and how each of our branches enforces the rules and ensures proper training is the top priority of our company.
In order to gain international confidence in its anti-money laundering measures, Taiwan will have to prove that it is enforcing the laws. The APG will review Taiwan in 2018.
"The visit will focus on how Taiwan will effectively enforce anti-money laundering rules," said Liang Hung-lieh, a partner at PricewaterhouseCoopers Taiwan.
"The on-site examination of the CPA will be new for the most valued institutions, including banks, non-financial financial institutions, particularly non-financial institutions such as attorneys, accountants and other professional services providers."
Under anti-money laundering laws, these financial professionals must report suspicious transactions, including bank transfers in excess of NT $ 500,000 (US $ 16,600).
They will have to determine where the money comes from, provide details about the client and report back to the newly established Taiwan Anti-Money Laundering Office.
These are similar to those of countries that have adhered to anti-money laundering rules, overseen by the Financial Action Task Force, have adopted.
The cost to companies of implementing the new rules can be important because they start processes, workers and data systems.
"There is much more to be done now than determining the identity of the beneficiaries of their clients," said an official with the Financial Supervisory Commission, the island's regulatory authority. He refused to be identified in the absence of permission to talk to the media.
"They still do not know exactly what to do and to what extent they will be considered to comply with the new regulations. It will take time to digest all these new rules," he said.
Possible costs and greater difficulty in carrying out transactions with the new rules relate to the real estate market, Wong said Jui-chi, spokesman of the Chinese Association of Chinese real estate agents, stressing that his industry intends To comply fully with the regulations.
"The housing market is already in bad shape and the new regulations will exacerbate things, making the real estate transaction process more complicated. More or less, everyone in our industry complains that," he said. .
Now as Mega Financial, companies around Taiwan are working to get the staff and systems are accelerated after the island passed laws consistent with international standards against money laundering and was delisted From Asia-Pacific group of money laundering.
"Unfortunately, Taiwan has earned a name as a money laundering paradise," said Deputy Minister of Justice Tsai Pi-chung.
Money laundering and cybercrime connections in Taiwan, which is also advancing a cybersecurity bill, have become the global leader.
Some money from the $ 170 million cybercombo from India Bank of India Union was transferred through the Chinese Bank SinoPac. A network of international crimes used malware to steal 2.6 million dollars from the first bank in Taiwan.
Taiwan was one of the six most targeted countries in the Wannacry rannies attack earlier this year, according to Avast security company.
Since 2011, 800 people from mainland China and Taiwan have been expelled from Cambodia for suspicion of telecommunications fraud.
As a result of his fine in the United States, Mega Financial said that cleaning up his act was a priority.
US authorities said the Mega branch had been "indifferent" to the risks associated with transactions involving Panama, a high-risk area for money laundering.
"What happened at our New York branch was terrible," said Robert Tsai, Senior Executive Vice President, referring to the fine and resulting scandal.
"Half of our 6,000 employees have been certified with money laundering training, and how each of our branches enforces the rules and ensures proper training is the top priority of our company.
In order to gain international confidence in its anti-money laundering measures, Taiwan will have to prove that it is enforcing the laws. The APG will review Taiwan in 2018.
"The visit will focus on how Taiwan will effectively enforce anti-money laundering rules," said Liang Hung-lieh, a partner at PricewaterhouseCoopers Taiwan.
"The on-site examination of the CPA will be new for the most valued institutions, including banks, non-financial financial institutions, particularly non-financial institutions such as attorneys, accountants and other professional services providers."
Under anti-money laundering laws, these financial professionals must report suspicious transactions, including bank transfers in excess of NT $ 500,000 (US $ 16,600).
They will have to determine where the money comes from, provide details about the client and report back to the newly established Taiwan Anti-Money Laundering Office.
These are similar to those of countries that have adhered to anti-money laundering rules, overseen by the Financial Action Task Force, have adopted.
The cost to companies of implementing the new rules can be important because they start processes, workers and data systems.
"There is much more to be done now than determining the identity of the beneficiaries of their clients," said an official with the Financial Supervisory Commission, the island's regulatory authority. He refused to be identified in the absence of permission to talk to the media.
"They still do not know exactly what to do and to what extent they will be considered to comply with the new regulations. It will take time to digest all these new rules," he said.
Possible costs and greater difficulty in carrying out transactions with the new rules relate to the real estate market, Wong said Jui-chi, spokesman of the Chinese Association of Chinese real estate agents, stressing that his industry intends To comply fully with the regulations.
"The housing market is already in bad shape and the new regulations will exacerbate things, making the real estate transaction process more complicated. More or less, everyone in our industry complains that," he said. .
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