The full text of the Money Laundering Control Act was comprehensively amended and officially promulgated by the President on July 31, 2024. Articles 6 and 11, however, will take effect later on November 30, as determined by the Executive Yuan. This marks the fourth full-scale revision of the law since its enactment in 1996 and comes roughly seven years after the last comprehensive revision at the end of 2016.
The latest amendments introduce stricter regulations on virtual asset service providers (“crypto vendors”) and third-party payment operators, tighten oversight of non-trustee fiduciaries, revise sentencing for general money laundering offenses, increase corporate liability, and incentivize self-reporting and upstream investigations. The key changes are as follows:
1. Stricter Regulations on Crypto Trade and Third-Party Payment Operators:
The amended Act requires virtual asset service providers and third-party payment operators to complete anti-money laundering (AML) compliance procedures and register their operational capacity (overseas entities must also register in accordance with the Company Act).
Failure to register as required will prohibit these entities from offering services and may result in criminal penalties of up to two years of imprisonment and/or a fine of up to NT$5 million. Corporate violators may face fines up to ten times that amount.
2. Enhanced Oversight of Non-Trustee Fiduciaries:
Non-trustee fiduciaries are now required to report and update relevant information to regulatory authorities.
They must also obtain the latest trust-related information from settlors and retain it for at least five years after termination of the trust.
Violations may result in fines ranging from NT$50,000 to NT$5 million, with penalties assessed on a per-instance basis.
3. Revised Sentencing Guidelines for General Money Laundering Offenses:
Sentencing for general money laundering now varies based on whether the illicit proceeds exceed NT$100 million. For cases below NT$100 million, offenders face 6 months to 5 years imprisonment and fines of up to NT$50 million. For cases equal to or exceeding NT$100 million, offenders face 3 to 10 years imprisonment and fines up to NT$100 million.
Previously, the maximum sentence was 7 years with no eligibility for imprisonment-fine conversion. Under the revised law, offenders in cases under NT$100 million may now qualify to convert imprisonment into fine.
4. Increased Corporate Liability:
Penalties against legal personalities have been significantly increased, with maximum fines raised to ten times the original amount.
However, if a company can demonstrate that it has taken all reasonable preventative measures, it may be exempt from liability.
5. Incentives for Self-Reporting and Upstream Investigations:
A new “whistleblower clause” has been added. Offenders who voluntarily confess and assist in tracing the source of illegal funds may receive reduced or even waived sentences.
(This article was authored by Attorney Cheng Jen-Hao of ToMoDaChi Attorneys-At-Law.)
