Taishin FHC Corporate Social Responsibility Report 2019

35 Sustainable Governance Policy and Authority A former financial advisor of the Xinzhuang Branch of Taishin Bank was involved in themisappropriation ofcustom - er funds and anomalous fund transactions with customers, in violation of Article 45-1, paragraph 1 of the Banking Act. The branch has been barred from accepting new customers for its trust business, and fines were imposed. 1-4 Anti-money Laundering and Countering the Financing of Terrorism (AML/CFT) Management of AML and CFT Penalized Matters Improvement Status 8 Million Complying with the target customer segment management guidelines established by individual relevant subsidiaries according to their own risk assessments. Not engaging in any business activities associated with a new product, service, or type of business until adequate money laundering and terrorist financing assessments and controls have been implemented Not allowing any violation of local regulations against money laundering or terrorist financing. Penalties and Improvements Penalties Unit: TWD Taishin has a "Taishin Financial Holding AML and CFT Policy" in place to combat money laundering and crime while at the same time instill order, transparency and cross-border collaboration in finan - cial services. By enhancing internal AML /CFT mechanisms, we hope to raise employees' anti-money laundering awareness and embrace a sustainable business value that supports our responsibilities as a global citizen. The board of directors of Taishin Financial Holding holds the ultimate authority and responsibility in AML and CFT. The board establishes compliance and risk management cultures throughout this organization, and regularly reviews the organization's AML/CFT practices. Group subsidiaries are responsible for verifying, assessing and establishing the level of money laundering and terrorism financing risks they are exposed to. They are also required to develop ML/TF risk prevention plans and compliance standard operating procedures, and undertake self-audits and internal audits for the purpose of preventing or mitigating ML/TF risks. ● Adequate implementation of internal control systems related to deposits and withdrawals. ● Adequate implementation of the "Inter - nal Control Principles to Prevent Misap - propriation of Customer Monies by Financial Advisors ” to strengthen the protection of our customers’ rights and interests. ● For more details, please refer to “Conduct Enhancement Program for Financial Advisors”on P.131-132. Taishin Bank’s deposit account opening and money launder - ing prevention inspection was found violations of Article 9, paragraph 1, and other provisions of the Money Laundering Control Act, and fines were imposed. 1 Million ● Strengthen the functions of anti-money laundering system reports. ● Adequate implementation of an assess - ment and management mechanism for large-amount notifications from branch - es. Taishin Bank insurance agent business was found violations of the Insurance Act. The Bank shall swiftly carry out corrections and fines were imposed. 0.2 Million ● Internal procedures were updated by adding a confirmationmechanismwhere - by customers acknowledge to have understood the risks concerned. ● Strengthen personnel training and incorpo - rate it into future general education and training courses. ● Established a review mechanism to strengthen internal control measures, and conducted periodical internal announcement to improve the quality of operations. ● Strengthen the system functions and improve the consistency of insurance input data. Zero tolerance Group-wide AML/CFT management Risk assessment and execution of control measures Subsidiary customer management policy Policy Risk Assessment Transaction monitoring Management meeting Training and education Internal/ external audit