Taipei: The Executive Yuan has approved draft amendments to the Money Laundering Control Act, focusing on enhancing the regulation of cryptocurrency-related activities and stablecoins to prevent their use in money laundering schemes.
According to Focus Taiwan, the proposed amendments classify the provision of virtual asset services or third-party payment services without proper registration, along with the unauthorized issuance of stablecoins, as "specified unlawful activities" under money laundering offenses. The draft aims to align with international standards by defining a beneficial owner as an individual who ultimately holds ownership or control over a client, transaction, legal entity, or arrangement.
The amendments empower central competent authorities to develop inspection and identification measures for beneficial owners with input from other government bodies. To improve inter-agency collaboration on money laundering prevention, the proposal permits government entities to access vital information from financial institutions and designated nonfinancial sectors within set boundaries.
Furthermore, the draft introduces a mechanism enabling financial institutions and virtual asset service providers (VASPs) to exchange information with peers and other industries to counter money laundering and terrorist financing. The amendments will be submitted to the Legislature for review and approval before becoming law.
Cabinet spokesperson Michelle Lee, in a post-Cabinet meeting press conference, cited Premier Cho Jung-tai's emphasis on the significance of preventing money laundering as a cornerstone for crime prevention and financial stability. Cho highlighted the need for legislative updates to keep pace with evolving criminal tactics and international standards, alongside the completion of supporting measures, implementation rules, and enhanced cross-agency cooperation and information sharing.