NCJ Number
202005
Journal
International Journal of Comparative and Applied Criminal Justice Volume: 27 Issue: 1 Dated: Spring 2003 Pages: 107-116
Editor(s)
Mahesh K. Nalla
Date Published
2003
Length
10 pages
Annotation
This paper examines the Republic of China (ROC), Money Laundering Control Act of 1997, the legal basis of the war on money laundering in Taiwan, the role of financial institutions in combating money laundering, and prevention recommendations.
Abstract
Promulgated in October 1996, the Republic of China (ROC), Money Laundering Control Act defined money laundering as concealing or hiding property or benefits obtained from a major crime committed by oneself or by another and the receipt, transportation, storage, deliberate purchase, or taking custody of property or benefits obtained from a major crime committed by another. The act was established to respond to the global problem of money laundering. The act places two obligations on financial institutions in Taiwan: to formulate money laundering prevention guidelines and “To Know Your Customers.” This paper examines Taiwan’s Money Laundering Control Act probing the role of financial institutions in combating money laundering. It examines the bank operations more closely related to money laundering prevention in the way of deposits, domestic remittance, credit, foreign exchange, and the offshore banking unit. The Money Laundering Prevention Center is seen as playing an imperative role in money laundering prevention however, it depends on the collaboration of financial institutions. Several suggestions are offered for winning the war on money laundering with the cooperation of financial institutions: (1) strengthen internal auditing mechanisms; (2) emphasize bank staff training; (3) enhance collaboration; and (4) establish a mechanism for preventing money laundering using cyber-payments. References