Article 1 These Regulations are promulgated pursuant to Article 45-2, Paragraph 3, of the Banking Act. Article 2 "Deposit account" as used in these Regulations means a checking deposit, demand deposit or time deposit account as described in Articles 6 through 8 of the Banking Act. Article 3 Definitions:
1. "Watch-listed account" shall mean a deposit account that a court, public prosecutor’s office, or a judicial police authority has, for the purpose of a criminal investigation, notified a bank to classify as watch-listed.
2. "Derivative watch-listed account" shall mean any other deposit account opened by the deposit account holder of a watch-listed account, including the deposit account opened under the proviso to Subparagraph 5, Paragraph 2, Article 13.
3. "Notification" shall mean an official letter from a court, public prosecutor’s office, or judicial police authority notifying a bank to classify a deposit account as a watch-listed account or rescind such classification. However, in a major and urgent case, notification may be made by telephone, fax or any other feasible means, followed by a confirming official letter and documents which shall be delivered to the bank within five business days. If the letter and documents are not delivered within that period, the bank shall contact the original notifying authority prior to rescinding the watch-listing of the account. Article 4 The criteria for identifying what constitutes a "deposit account with suspicious or unusual transactions" as referred to in these Regulations, and the classification scheme for such accounts, are as follows: 1. Category One: (1) Deposit accounts opened under fake names, (2) Watch-listed accounts, and (3) Derivative watch-listed accounts. 2. Category Two: (1) The applicant frequently applies to open a deposit account or to set up designated accounts over a short period of time without a reasonable explanation. (2) The transaction functions applied for are obviously inconsistent with the customer’s age or background. (3) The contact information provided by the customer cannot be verified by using reasonable measures. (4) The deposit account has been reported by a financial institution or a member of the public as being used by someone suspected of criminal activities. (5) The deposit account has been used for frequent small-amount inward and outward remittances suspected of being probing activities. (6) The user makes frequent use of electronic services or facilities of banks within a short period of time in a manner that is obviously at variance with the normal transaction activities of the customer. (7) An inactive deposit account with unexpected unusual transactions. (8) A non-Taiwanese person who is found by a bank to have had relevant identity certification documents, such as resident certificates provided for verification upon opening a deposit account, revoked prior to expiration, to have overstayed, or to have been reported as missing. (9) A deposit account whose account holder provides the same mobile phone number as that provided by the account holder of another watch-listed account at the same bank, and which is suspected to be used for criminal activity. (10) The virtual account linked to the deposit account has been reported as a watch-listed account several times within a certain period of time. (11) A customer who is verified by a bank to have been reported as a missing person. (12) A domestic deposit account listed by a judicial police authority as suspected of involvement in fraud. (13) Other deposit accounts determined by the competent authority or banks to be suspected of being illegal or obviously abnormal. Article 5 Banks shall adopt the following measures for deposit accounts identified as involving suspicious or unusual transactions based on the categorization standards set out in the preceding Article:
1. Category One:
(1) If a deposit account is opened under a fake name, the bank shall immediately notify a judicial police authority, the Anti-Money Laundering Division of the Investigation Bureau, Ministry of Justice, and the Joint Credit Information Center ("JCIC"). The bank shall also close such account immediately. Any remaining balance shall be processed when a person legally entitled to claim it requests payment.
(2) For a deposit account reported as a watch-listed account, the bank shall suspend all transaction functions of such account. All inward remittances shall be returned to the remitting bank, and notification shall be given to institutions designated by the competent authority in accordance with its regulations.
(3) For a deposit account that is a derivative watch-listed account, the bank shall immediately suspend ATM card functions, fund transfers by telephone banking or Internet banking, and other electronic payment functions of such account. All inward remittances shall be returned to the remitting bank. When processing over-the-counter withdrawals, transfers, or outward remittances, the bank may request the account holder to provide transaction-related information to prove the reasonableness of the transaction; if a reasonable explanation cannot be provided, the bank may refuse to carry out the transaction.
(4) Banks shall take such measures as may be required by other laws and regulations.
2. Category Two:
(1) Banks shall verify and continuously monitor such deposit accounts. Where there is a concern of suspicious or unusual transactions, the bank may, in addition to notifying judicial police authorities, adopt some or all of the measures set forth in the preceding subparagraph. In major or urgent circumstances, the bank may also notify the Taiwan High Prosecutors Office.
(2) Banks shall take such measures as may be required by the Money Laundering Control Act and other applicable laws and regulations. Article 6 In addition to the measures listed in the preceding Article, banks shall also take the following internal measures:
1. Notify the responsible department in the head office or group headquarters in accordance with applicable internal procedures;
2. Report the measures that have been and will be adopted to the responsible department of the head office or group headquarters in accordance with applicable internal procedures;
3. Make a note in the bank's internal information system to remind each branch to take precautions. Article 7 Deleted Article 8 If a deposit account is reported as a watch-listed account by a court, public prosecutor’s office, or judicial police authority after the funds in such deposit account have been ordered attached or prohibited from being disposed of, such account shall still be marked as a watch-listed account, but such funds shall be handled with priority in accordance with the attachment order or the order prohibiting disposition. Article 9 The watch-list period of a watch-listed account shall automatically expire two years after the date the deposit account is reported as a watch-listed account. If such deposit account still needs to be watch-listed, the original notifying authority shall issue a new notification to continue watch-listing the account prior to the expiry of the two-year period, and the watch-list period may be extended only once for up to one year.
If the account holder of a watch-listed account has any questions or objections regarding his/her deposit account being classified as a watch-listed account, he/she shall contact the original notifying authority to handle the matter and the bank shall provide assistance as necessary. Article 10 Banks may not remove restrictions on a watch-listed account until they have received a notification from the original notifying authority, or the watch-list period has expired. For derivative watch-listed accounts and other deposit accounts with transactions identified as suspicious or unusual under the criteria set forth in Article 4, Subparagraph 2, a bank shall immediately rescind relevant restrictions after it verifies that the suspicious or unusual situation has been eliminated. If restrictions on a watch-listed account are removed pursuant to a notification from the original notifying authority, or if the original notifying authority again notifies the bank to continue watch-listing in accordance with Paragraph 1 of the preceding Article, the bank shall notify institutions designated by the competent authority in accordance with its regulations. Article 11 For deposit accounts reported as watch-listed accounts on or before March 31, 2025, if the bank confirms that the reason for the notification involves a fraud case and unwithdrawn funds remitted (transferred) by victims remain in the account, the bank shall, using the account opening information, contact the account holder and negotiate with such account holder regarding the return of remaining funds in the watch-listed account. If the account holder cannot be contacted, the bank may request the police authority to assist in locating the account holder for one month. If a bank carrying out the procedures described in the preceding paragraph is unable to contact the account holder, it shall notify the victims through the remitting (transferring) banks to prepare the following documents. Thereafter, based on the chronological order of inward remittances (transfers), the bank shall identify, transaction by transaction, the portions that have not yet been withdrawn, and return the remaining funds held in the watch-listed account to victims, starting from the amount of the last remittance (transfer) and working backward until the balance of the watch-listed account reaches zero: 1. Identity certification document; 2. A certificate or document of case acceptance (processing) issued by the judicial police authority; and 3. An undertaking issued by the victim stating that he/she will bear all liability for any damages incurred by the bank due to untrue information provided by such victim. With respect to returning the remaining funds held in a watch-listed account pursuant to the preceding two paragraphs, if any of the following occurs, a bank may close the account and record such remaining funds as other payables, to be processed when a person legally entitled to claim such funds requests payment. However, the bank shall not rescind the effect of the watch-listing on the account holder until it has been notified to lift the watch-listing, or the watch-list period expires: 1. The account balance is below a certain amount, such that the cost of returning would make such return not worthwhile; 2. The bank is unable to contact the account holder or the victim(s) more than three months after receipt of the notification; or 3. The victim(s) is (are) unwilling to report the case or to claim the funds. The bank shall appoint a deputy general manager or officer of equivalent level to supervise the handling of remaining funds held in watch-listed accounts. Cases that the bank identifies as suspected of involving transaction disputes or as otherwise complicated shall be handled through judicial procedures, and the provisions regarding the return of remaining funds under Paragraphs 1 to 3 shall not apply thereto. If the bank contacts the account holder in accordance with Paragraph 1 and the account holder refuses to appear, the bank may advise the victim(s) to contact a judicial police authority to issue a written notification to the bank to process the return of remaining funds in accordance with the Regulations Governing Fraud Crime Hazard Prevention by Financial Institutions and Businesses or Personnel Providing Virtual Asset Services. For deposit accounts reported as watch-listed accounts on or after April 1, 2025, where unwithdrawn funds remitted (transferred) by victims remain in the account, the remaining funds shall be handled in accordance with the Regulations Governing Fraud Crime Hazard Prevention by Financial Institutions and Businesses or Personnel Providing Virtual Asset Services, and the provisions of the preceding six paragraphs shall not apply. Article 12 Banks shall establish clear Know-Your-Customer policies and procedures, including standards for accepting customers’ applications to open deposit accounts, identification of customers, monitoring and control of deposit accounts and transactions, and necessary training, etc.
Model examination procedures for processing deposit account opening applications under the preceding paragraph shall be promulgated by the Bankers Association of the Republic of China and reported to the competent authority for reference. Article 13 When processing a deposit account opening application, a bank shall verify the identity of the applicant by the following methods, and check the ID card issuance, replacement, and reissuance records, reported case records, and supplemental notation information through the JCIC:
1. For over-the-counter applicants, a bank shall verify the identity of the applicant using dual identification documents that suffice to authenticate the identity of the applicant.
2. For online applicants, a bank shall verify the identity of the applicant using the real-name authentication methods prescribed by the Bankers Association of the Republic of China and reported to the competent authority for reference.
A bank shall verify the identity of a customer before processing his/her deposit account opening application. A bank shall reject a customer's account opening application if:
1. The customer is suspected of using a fake name, a nominee, a shell company, or a shell legal person/organization to open a deposit account.
2. The customer uses forged or altered identification documents or only provides photocopies of the identification documents.
3. Documents provided by the customer are suspicious or unclear, or the customer refuses to provide other supporting documents, or the documents provided cannot be authenticated.
4. The customer procrastinates in providing identification documents in an unusual manner.
5. Another deposit account opened by the same customer has been reported as a watch-listed account and remains on the watch list, except for any of the following circumstances:
(1) The account is opened for salary transfer and the applicant has provided an employment certificate or documents issued by his/her employer;
(2) The account is opened for disbursement of a loan to the applicant that has been approved by the bank; or
(3) The account is permitted to be opened under other provisions of law.
6. Other unusual circumstances exist and the customer fails to provide a reasonable explanation. Article 14 A bank shall use a database to consolidate basic information and transaction information on all its deposit customers for inquiries by the head office and branches, establish internal control procedures for requests and inquiries as to customer information made by various entities, and exercise care to ensure the confidentiality of the information. Article 15 For transactions processed through professional intermediary institutions on behalf of customers, applicants seeking to open accounts under the proviso to Subparagraph 5, Paragraph 2, Article 13, or other deposit customers or transactions identified as high risk, a bank shall, in addition to the regular customer due diligence procedures, establish suitable risk control measures, including:
1. The opening of such accounts shall be approved by a higher-level supervisor;
2. The reasonableness of the sources and destinations of their wealth and funds shall be verified; and
3. The bank shall conduct ongoing monitoring of transactions in such accounts. Article 16 A bank shall establish a mechanism supported by information systems to detect unusual deposit account transactions. It shall also establish early warning indicators focusing on transaction amounts exceeding a certain threshold, transaction amounts clearly inconsistent with average account balances, or frequent use over a short period of electronic transaction functions, and shall assign dedicated personnel to check and follow up at least once per day, and prepare records, which shall be delivered in accordance with internal procedures to the responsible supervisor for review.
The records referred to in the preceding paragraph, and data pertaining thereto, shall be maintained for at least five years, and may be provided to the competent authority, relevant units, and internal audit units for review. Article 17 Overseas branches and subsidiary banks of a bank shall comply with these Regulations to the extent permitted by the laws and regulations of the country where such branches or subsidiary banks are located. If the laws and regulations of such country conflict with these Regulations, the bank shall report such fact to the competent authority for reference. Article 18 Banks shall establish internal procedures pursuant to these Regulations. Such internal procedures shall include, at a minimum, the standards for determining what constitutes an account with suspicious or unusual transactions and the measures to be taken, designation of the dedicated department as referred to in Article 6, Subparagraph 1, the "certain amount" as referred to in Article 11, Paragraph 3, Subparagraph 1, establishment of early warning indicators as referred to in Article 16, Paragraph 1, handling of disputes, personnel training, and audit functions. Article 19 Banks shall incorporate the aforesaid internal procedures into their internal control and audit systems, and conduct internal audits and self-inspections in accordance with the Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries. Article 20 These Regulations shall become effective from the date of promulgation, with the exception of the amended Paragraph 1 of Article 9 promulgated on August 20, 2014, which shall become effective on January 1, 2015. |