News Risk Management13 Jul 2018

Taiwan:Mutual evaluation of Asia/Pacific Group on Money Laundering to be conducted in Nov

13 Jul 2018

There will be a mutual evaluation of the Asia/Pacific Group on Money Laundering (APG) to be held in November 2018.

The public and private sectors have been devoting themselves on Anti-Money Laundering /Countering the Financing of Terrorism (AML/CFT) matters to make a better financial environment for Taiwan, says Cathay Life Insurance.

Cathay Life has clarified that its chief compliance officer, Kung Tu-chih, at the Insurance Anti-Fraud Institute (IAFI) Conference on 6 July, had shared with delegates the prevalent compliance weaknesses in the market as mentioned in published mutual evaluation reports of 45 other countries.

The weaknesses include:

  • lack of dedication toward money laundering prevention among the top executives at life insurers,
  • discrepancies in the definition of ultimate beneficiary and the conditions that warrant an STR filing between life insurers and the Asia/Pacific Group on Money Laundering (APG),
  • the number of STRs being submitted is far lower than what is considered normal for an insurance market of a country,
  • lacking a sound real-time transaction monitoring system, and
  • having not subscribed to international databases on politically exposed persons (PEP), which led to an over-reliance on client declarations.

He stressed that these weaknesses are not true for Taiwan.

The clarification was made in response to media reports, “IAFI calls on insurers to improve compliance” published by Taipei Times on 9 July 2018 and “Taiwan:More commitment needed to prevent money laundering” by Asia Insurance Review on 10 July 2018.


 


 

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