Taiwan revises money laundering act to include digital assets

Taiwan is bolstering its anti-money laundering regulations through amendments to its Money Laundering Control Act, as the island aligns its laws with international standards set by the Asia/Pacific Group on Money Laundering (APG).

The key focus of the amendments is to bring virtual assets and virtual asset service providers firmly under the oversight 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 the authorities for anti-money laundering purposes and demonstrate their service capabilities. Failure to comply will result in criminal penalties. Maximum fines for designated non-financial businesses or personnel that violate the regulations are also being raised, with the ability to impose penalties per violation.

To combat cross-border money laundering, the amendments require passengers entering or leaving Taiwan to declare any foreign currencies, Hong Kong or Macau-issued currencies, New Taiwan Dollars, securities, gold, or other items above a certain amount. Customs will have the power to seize any undeclared amounts exceeding the specified limit.

To encourage self-policing, the revised law increases fines on corporations involved in money laundering while also providing exemptions from liability if the company had taken preventive measures. Sentence reductions are also possible for individuals who surrender illicit gains and assist in investigations.

The strengthening of Taiwan’s anti-money laundering laws comes as the island seeks to address gaps identified by the APG in previous evaluations. By extending oversight to the digital assets 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.