|
|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
Taiwan is a regional financial center. Its modern financial sector,
strategic location on international shipping lanes, expertise in high-
tech sectors, and role as an international trade hub make it
vulnerable to transnational crimes, including money laundering,
drug trafficking, telecom fraud, and trade fraud. Though illegal in
Taiwan, a significant volume of informal financial activity takes
place through unregulated non-bank channels. Taiwan has five
free trade zones and a growing offshore banking sector. There is
no significant black market for smuggled goods in Taiwan.
Domestic money laundering is generally related to tax evasion,
drug trafficking, public corruption, and a range of economic
crimes. Jewelry stores increasingly are being used as a type of
underground remittance system. Jewelers convert illicit proceeds
into precious metals, stones, and foreign currency, and generally
move them using cross-border couriers. The tradition of secrecy
in the precious metals and stones trade makes it difficult for law
enforcement to detect and deter money laundering in this sector,
even though dealers in precious metals and stones are required
to implement know-your-customer rules.
Do Financial instituions engage in currency transactions related to
international narcotics trafficking that include significant amounts
of us currency; currency derived from illegal sales in the u.s; or
that otherwise significantly affect the u.S.:NO
Criminalization of Money Laundering:
"All serious crimes" approach or" list" approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: banks, credit co-operative associations,
credit departments of Farmers’ Associations and Fishermen’s
Association, Department of Savings & Remittances of Chunghwa
Post Co., securities firms, life insurance companies, and dealers
in precious metals and stones
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 5,379 from January to
September 2011
Number of CTRs received and time frame: 65,054 from January to
September 2011
STR covered entities: Banks, credit co-operative associations,
credit departments of Farmers’ Association and Fishermen’s
Association, Department of Savings & Remittances of Chunghwa
Post. Co., securities firms, life insurance companies, jewelry
stores, and members of the National Real Estate Brokering
Agencies Association
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: 20 from January to September 2011
Convictions: Eight from January to September 2011
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Taiwan is a member of the Asia/Pacific Group on Money
Laundering (APG), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: http://www.apgml.org/documents/docs/17/Chinese%
20Taipei%20MER2_FINAL.pdf
Enforcement and implementation issues and comments:
Taiwan continues to strengthen its AML/CFT regime, but is not in
full compliance with international standards on combating terrorist
financing. While Taiwan criminalized the financing of terrorist
activities, it is not an autonomous offense and does not
specifically cover the financing and support of terrorist activities
overseas. Taiwan should pass legislation to criminalize terrorism
and terrorist financing as an autonomous crime, and clarify that
the law covers such activities overseas. The government should
abolish all shell companies and prohibit the establishment of new
shell companies of any type.
Taiwan’s AML/CFT requirements do not apply to several types of
designated non-financial businesses and professions (DNFBPs),
which remain vulnerable to money laundering/terrorist financing
activity. Taiwan should raise awareness of the vulnerabilities of
non-profit organizations to terrorist financing, and should exert
more authority over this sector. Taiwan should take steps to
amend its legislation and regulations to bring all DNFBPs, as
listed in the international standards, and the non-profit sector
within the scope of its AML/CFT coverage. Given the increasing
threat of alternative remittance centers such as the precious
metals and stones sector, Taiwan’s law enforcement should
enhance investigations of underground financial systems.
In September 2011, Taiwan’s Financial Supervisory Commission,
the top financial regulator in Taiwan, directed Taiwan’s financing
institutions to begin implementing enhanced due diligence
procedures for politically exposed persons, through an
established databank for “high profile politician.” Financial
institutions are required to identify, record, and report the
identities of high-profile customers engaging in significant or
suspicious transactions.
In two decisions rendered in 2011, Taiwan’s High Court upheld
earlier convictions and reversed a lower court acquittal against
former President Chen Shui-bian and members of his family for a
range of corruption offenses including money laundering, forgery,
embezzlement and bribery committed while he was in office. The
Court fined him NT$180 million (approximately $5.9 million) and
sentenced him to an additional 18 years in prison, in addition to
his previous 17-year sentence for corruption.
Taiwan is unable to ratify UN conventions because of long-
standing political issues. However, it has enacted domestic
legislation to implement the standards in the 1988 UN Drug
Convention, the UN Convention against Transnational Organized
Crime, and the UN Convention for the Suppression of the
Financing of Terrorism.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Taiwan is not a major transit/transshipment point for illegal drugs
destined for the United States or other countries; however, there
are still instances when illegal drugs transit Taiwan. Because of
Taiwan’s proximity to China, its long coastline, and its large
container port in Kaohsiung, Taiwan is used as a transit and
transshipment point for illegal drugs destined for international
markets.
Taiwan continues to play an important role in international drug
trafficking activities. Specifically, ethnic Chinese trafficking
organizations with connections throughout Southeast Asia meet in
Taiwan to discuss, plan, and organize drug shipments. Taiwanese
drug traffickers operate throughout Southeast Asia, including in
Hong Kong, China, the Philippines, Burma, and Thailand. Unlike
large-scale drug trafficking organizations operating in other parts
of the world, organizations operating at the wholesale and
importation levels in Taiwan are not large, and they may be ad
hoc as opposed to continuing criminal conspiracies.
Taiwan produces methamphetamine and remains a source for
pseudoephedrine combination tablets destined for various Central
American countries. Ketamine usage continues to increase,
reflecting its popularity as a party drug among youth and because
criminal penalties for ketamine usage are minimal.
Nonetheless, Taiwanese authorities continue to strengthen anti-
illicit drug efforts with enhanced airport interdiction, thorough
coast guard and customs inspections, surveillance, and other
investigative methods.
Taiwan is not a member of the United Nations and, therefore, is
not a party to the 1988 UN Convention. However, Taiwan
authorities have amended and passed legislation consistent with
the goals and objectives of the Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Taiwan is a destination, and to a much lesser extent, source and
transit territory for men, women, and children subjected to sex
trafficking and forced labor. Most trafficking victims in Taiwan are
migrant workers from Vietnam, Thailand, Indonesia, mainland
China, Cambodia, the Philippines, Bangladesh, and India
employed through recruitment agencies and brokers to perform
low-skilled work in Taiwan’s manufacturing and fishing industries
and as home caregivers and domestic workers. Many of these
workers fall victim to labor trafficking by unscrupulous brokers and
employers, who force workers to perform work outside the scope
of their contract and often under exploitative conditions. Some
employers of domestic workers and home caregivers forbid their
employees from leaving their residences, except on days off,
making them extremely vulnerable to labor trafficking and other
abuses and unable to seek help. Some women and girls from
China and Southeast Asian countries are lured to Taiwan through
fraudulent marriages and deceptive employment offers for
purposes of sex trafficking and forced labor. Migrant workers are
reportedly charged up to $7,700 in recruitment fees typically in
their home countries, resulting in substantial debt that may be
used by brokers or employers as a coercive tool to subject the
workers to forced labor. Labor brokers often assist employers to
deport “problematic” employees forcibly, thus allowing the broker
to fill the empty quota with new foreign workers who must pay
brokerage fees, which may be used to maintain them in a situation
of forced labor. Brokers used threats and the confiscation of
travel documents as a means to control workers. Some women
from Taiwan are recruited through classified ads for employment
in Japan, Australia, the UK, and the United States, where they are
forced into prostitution. Taiwan is a transit territory for Chinese
citizens who enter the United States illegally and may become
victims of debt bondage and forced prostitution in the United
States.
Taiwan authorities fully comply with the minimum standards for the
elimination of trafficking. During the reporting period, Taiwan
authorities continued to prosecute and punish trafficking offenses,
including both forced labor and forced prostitution. In addition, the
government sustained strong victim protection efforts, continued
to train law enforcement and other government officials, and
raised public awareness on trafficking offenses.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Taiwan is not a member of the United Nations and, therefore, is
not subject to UNSC Resolutions and cannot join UN
counterterrorism conventions and protocols. Nonetheless, Taiwan
sought to implement, to the maximum extent possible, all UN
resolutions related to combating terrorism and terrorist finance
issues. Taiwan continued to provide rapid and thorough
responses on terrorist financing issues to the American Institute in
Taiwan (AIT). The “Antiterrorist Action Law” proposed in 2006 by
Taiwan’s Executive Yuan, is still awaiting action by the Legislative
Yuan. Taiwan revised its Money Laundering Control Act in 2009 to
extend the law’s coverage to the financing of crimes that
intimidate the public or threaten “the government, a foreign
government or institution, or international organization.”
The Taiwan Office of Homeland Security (OHS) coordinated
several large-scale training exercises among law enforcement and
security agencies. Taiwan sought ways to harden and protect its
critical infrastructure, in order to maintain continuity of operations
and government in the event of an attack or disaster. OHS also
coordinated counterterrorism exercises with Taiwan law
enforcement and security agencies prior to the “2009 Kaohsiung
World Games” and the “2009 Taipei Deaf Olympics.”
____________________________________________________
Links:
Anti-Money Laundering Division (AMLD)
Worldwide AML Legislation (International Bar Association)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
Taiwan is a regional financial center. Its modern financial sector,
strategic location on international shipping lanes, expertise in high-
tech sectors, and role as an international trade hub make it
vulnerable to transnational crimes, including money laundering,
drug trafficking, telecom fraud, and trade fraud. Though illegal in
Taiwan, a significant volume of informal financial activity takes
place through unregulated non-bank channels. Taiwan has five
free trade zones and a growing offshore banking sector. There is
no significant black market for smuggled goods in Taiwan.
Domestic money laundering is generally related to tax evasion,
drug trafficking, public corruption, and a range of economic
crimes. Jewelry stores increasingly are being used as a type of
underground remittance system. Jewelers convert illicit proceeds
into precious metals, stones, and foreign currency, and generally
move them using cross-border couriers. The tradition of secrecy
in the precious metals and stones trade makes it difficult for law
enforcement to detect and deter money laundering in this sector,
even though dealers in precious metals and stones are required
to implement know-your-customer rules.
Do Financial instituions engage in currency transactions related to
international narcotics trafficking that include significant amounts
of us currency; currency derived from illegal sales in the u.s; or
that otherwise significantly affect the u.S.:NO
Criminalization of Money Laundering:
"All serious crimes" approach or" list" approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: banks, credit co-operative associations,
credit departments of Farmers’ Associations and Fishermen’s
Association, Department of Savings & Remittances of Chunghwa
Post Co., securities firms, life insurance companies, and dealers
in precious metals and stones
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 5,379 from January to
September 2011
Number of CTRs received and time frame: 65,054 from January to
September 2011
STR covered entities: Banks, credit co-operative associations,
credit departments of Farmers’ Association and Fishermen’s
Association, Department of Savings & Remittances of Chunghwa
Post. Co., securities firms, life insurance companies, jewelry
stores, and members of the National Real Estate Brokering
Agencies Association
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: 20 from January to September 2011
Convictions: Eight from January to September 2011
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Taiwan is a member of the Asia/Pacific Group on Money
Laundering (APG), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: http://www.apgml.org/documents/docs/17/Chinese%
20Taipei%20MER2_FINAL.pdf
Enforcement and implementation issues and comments:
Taiwan continues to strengthen its AML/CFT regime, but is not in
full compliance with international standards on combating terrorist
financing. While Taiwan criminalized the financing of terrorist
activities, it is not an autonomous offense and does not
specifically cover the financing and support of terrorist activities
overseas. Taiwan should pass legislation to criminalize terrorism
and terrorist financing as an autonomous crime, and clarify that
the law covers such activities overseas. The government should
abolish all shell companies and prohibit the establishment of new
shell companies of any type.
Taiwan’s AML/CFT requirements do not apply to several types of
designated non-financial businesses and professions (DNFBPs),
which remain vulnerable to money laundering/terrorist financing
activity. Taiwan should raise awareness of the vulnerabilities of
non-profit organizations to terrorist financing, and should exert
more authority over this sector. Taiwan should take steps to
amend its legislation and regulations to bring all DNFBPs, as
listed in the international standards, and the non-profit sector
within the scope of its AML/CFT coverage. Given the increasing
threat of alternative remittance centers such as the precious
metals and stones sector, Taiwan’s law enforcement should
enhance investigations of underground financial systems.
In September 2011, Taiwan’s Financial Supervisory Commission,
the top financial regulator in Taiwan, directed Taiwan’s financing
institutions to begin implementing enhanced due diligence
procedures for politically exposed persons, through an
established databank for “high profile politician.” Financial
institutions are required to identify, record, and report the
identities of high-profile customers engaging in significant or
suspicious transactions.
In two decisions rendered in 2011, Taiwan’s High Court upheld
earlier convictions and reversed a lower court acquittal against
former President Chen Shui-bian and members of his family for a
range of corruption offenses including money laundering, forgery,
embezzlement and bribery committed while he was in office. The
Court fined him NT$180 million (approximately $5.9 million) and
sentenced him to an additional 18 years in prison, in addition to
his previous 17-year sentence for corruption.
Taiwan is unable to ratify UN conventions because of long-
standing political issues. However, it has enacted domestic
legislation to implement the standards in the 1988 UN Drug
Convention, the UN Convention against Transnational Organized
Crime, and the UN Convention for the Suppression of the
Financing of Terrorism.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Taiwan is not a major transit/transshipment point for illegal drugs
destined for the United States or other countries; however, there
are still instances when illegal drugs transit Taiwan. Because of
Taiwan’s proximity to China, its long coastline, and its large
container port in Kaohsiung, Taiwan is used as a transit and
transshipment point for illegal drugs destined for international
markets.
Taiwan continues to play an important role in international drug
trafficking activities. Specifically, ethnic Chinese trafficking
organizations with connections throughout Southeast Asia meet in
Taiwan to discuss, plan, and organize drug shipments. Taiwanese
drug traffickers operate throughout Southeast Asia, including in
Hong Kong, China, the Philippines, Burma, and Thailand. Unlike
large-scale drug trafficking organizations operating in other parts
of the world, organizations operating at the wholesale and
importation levels in Taiwan are not large, and they may be ad
hoc as opposed to continuing criminal conspiracies.
Taiwan produces methamphetamine and remains a source for
pseudoephedrine combination tablets destined for various Central
American countries. Ketamine usage continues to increase,
reflecting its popularity as a party drug among youth and because
criminal penalties for ketamine usage are minimal.
Nonetheless, Taiwanese authorities continue to strengthen anti-
illicit drug efforts with enhanced airport interdiction, thorough
coast guard and customs inspections, surveillance, and other
investigative methods.
Taiwan is not a member of the United Nations and, therefore, is
not a party to the 1988 UN Convention. However, Taiwan
authorities have amended and passed legislation consistent with
the goals and objectives of the Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Taiwan is a destination, and to a much lesser extent, source and
transit territory for men, women, and children subjected to sex
trafficking and forced labor. Most trafficking victims in Taiwan are
migrant workers from Vietnam, Thailand, Indonesia, mainland
China, Cambodia, the Philippines, Bangladesh, and India
employed through recruitment agencies and brokers to perform
low-skilled work in Taiwan’s manufacturing and fishing industries
and as home caregivers and domestic workers. Many of these
workers fall victim to labor trafficking by unscrupulous brokers and
employers, who force workers to perform work outside the scope
of their contract and often under exploitative conditions. Some
employers of domestic workers and home caregivers forbid their
employees from leaving their residences, except on days off,
making them extremely vulnerable to labor trafficking and other
abuses and unable to seek help. Some women and girls from
China and Southeast Asian countries are lured to Taiwan through
fraudulent marriages and deceptive employment offers for
purposes of sex trafficking and forced labor. Migrant workers are
reportedly charged up to $7,700 in recruitment fees typically in
their home countries, resulting in substantial debt that may be
used by brokers or employers as a coercive tool to subject the
workers to forced labor. Labor brokers often assist employers to
deport “problematic” employees forcibly, thus allowing the broker
to fill the empty quota with new foreign workers who must pay
brokerage fees, which may be used to maintain them in a situation
of forced labor. Brokers used threats and the confiscation of
travel documents as a means to control workers. Some women
from Taiwan are recruited through classified ads for employment
in Japan, Australia, the UK, and the United States, where they are
forced into prostitution. Taiwan is a transit territory for Chinese
citizens who enter the United States illegally and may become
victims of debt bondage and forced prostitution in the United
States.
Taiwan authorities fully comply with the minimum standards for the
elimination of trafficking. During the reporting period, Taiwan
authorities continued to prosecute and punish trafficking offenses,
including both forced labor and forced prostitution. In addition, the
government sustained strong victim protection efforts, continued
to train law enforcement and other government officials, and
raised public awareness on trafficking offenses.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Taiwan is not a member of the United Nations and, therefore, is
not subject to UNSC Resolutions and cannot join UN
counterterrorism conventions and protocols. Nonetheless, Taiwan
sought to implement, to the maximum extent possible, all UN
resolutions related to combating terrorism and terrorist finance
issues. Taiwan continued to provide rapid and thorough
responses on terrorist financing issues to the American Institute in
Taiwan (AIT). The “Antiterrorist Action Law” proposed in 2006 by
Taiwan’s Executive Yuan, is still awaiting action by the Legislative
Yuan. Taiwan revised its Money Laundering Control Act in 2009 to
extend the law’s coverage to the financing of crimes that
intimidate the public or threaten “the government, a foreign
government or institution, or international organization.”
The Taiwan Office of Homeland Security (OHS) coordinated
several large-scale training exercises among law enforcement and
security agencies. Taiwan sought ways to harden and protect its
critical infrastructure, in order to maintain continuity of operations
and government in the event of an attack or disaster. OHS also
coordinated counterterrorism exercises with Taiwan law
enforcement and security agencies prior to the “2009 Kaohsiung
World Games” and the “2009 Taipei Deaf Olympics.”
____________________________________________________
Links:
Anti-Money Laundering Division (AMLD)
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| TAIWAN |
| KnowYourCountry |
| KnowYourCountry |
|
|
| Last Updated: 16 April 2012 |