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Laws Against Money Laundering Become More Strict

Laws Against Money Laundering Become More Strict

The Financial Supervisory Commission under the Cabinet announced Tuesday that from Aug. 1, all banks in Taiwan handling domestic remittances of NT$30,000 (US$922) or more in funds must record the name, ID number and telephone number of the client.

At present, Article 8 of the Money Laundering Control Act says that a bank should report a remittance only when the funds transferred by a client within the same day exceed NT$1 million.

A recently uncovered series of corruption scandals involving President Chen Shui-bian's son-in-law, Chao Chien-ming, show that he took advantage of the loophole by keeping each amount of funds laundered in a single day under NT$1 million.

The Bankers Association of the Republic of China held a meeting in late June in which its Board of Directors and Board of Supervisors approved a proposal to tighten up the laws against money laundering.

Although the association favored NT$700,000 as the threshold for applying the anti-money laundering law for fear of causing inconvenience to customers, it agreed to abide by the Financial Supervisory Commission's final decision.