Taiwan is strengthening its anti-money laundering regulations through changes to the Money Laundering Control Act, as the island aligns its laws with international standards set by the Asia/Pacific Group on Money Laundering (APG).
The main focus of the changes is to bring virtual assets and virtual asset service providers firmly under the supervision of Taiwan’s anti-money laundering regime. The revised law adds clear definitions for “virtual assets” and “virtual asset service providers” to close previous gaps.
Virtual asset service providers must now register with authorities for anti-money laundering purposes and demonstrate their service capabilities. Failure to comply will result in criminal penalties. The maximum fines for designated non-financial companies or staff who violate the regulations will also be increased, with the option to impose fines per violation.
To combat cross-border money laundering, the changes require passengers entering or leaving Taiwan to declare foreign currency, Hong Kong or Macao-issued currency, new Taiwan dollars, securities, gold or other items above a certain amount. Customs will have the authority to confiscate undeclared amounts in excess of the specified limit.
To encourage self-policing, the revised law increases fines for companies involved in money laundering, while also providing exemptions from liability if the company has taken preventive measures. Penalty reductions are also possible for people who hand in illegal profits and cooperate in investigations.
The strengthening of Taiwan’s anti-money laundering laws comes as the island tries to address gaps identified by the APG in previous reviews. By expanding supervision to the digital asset sector and encouraging better corporate governance, Taiwan aims to make its financial system more resilient to money laundering threats as it further integrates with the global economy.
