Anti-money Laundering and Countering the Financing of Terrorism
Management of AML and CFT
Taishin has the " 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 financial 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.
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Risk assessment and execution of control measures
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.
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Subsidiary customer management policy
Complying with the target customer segment management guidelines established by individual relevant subsidiaries according to their own risk assessments.
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Zero tolerance
Not allowing any violation of local regulations against money laundering or terrorist financing.
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.
Five Actions
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01
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Internal regulations and SOP added or modified in terms of the changes in local or foreign external AML/CFT regulations.
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02
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Institution Risk Assessment (IRA) and customer risk assessment.
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03
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Setting the transaction monitoring scenarios.
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04
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Convention of senior management meetings, such as group risk management committee meeting, group AML/CFT meeting, AML/CFT committee of the subsidiary bank, risk management committee of the subsidiary securities, and relevant management meetings of other subsidiaries.
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05
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The organization adopts three lines of defense to ensure the effectiveness of its controls. The Compliance officer convenes monthly meetings to discuss issues concerning compliance, risk management and the 2nd and 3rd lines of defense, whereas the Chief Auditor convenes quarterly audit seminars involving the parent company and subsidiaries.
Three Lines of Defense
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First line of defense
Business administration departments are required to comprehend the AML/CFT program and adopt relevant practices in daily activities.
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Second line of defense
A responsible unit has been assigned and supported with resources to monitor and assess risk constantly.
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Third line of defense
The internal audit unit conducts regular audits according to internal control measures.
Results in AML and CFT
The Company continued to include anti-money laundering and counter terrorism financing training for corporate governance courses for the Directors of Taishin FHC in 2022 for the purpose of enhancing the awareness of the management and general employees for anti-money laundering and counter terrorism financing. The Group also provided significant amounts of training for the Group's AML/CFT officers/personnel with 798 total training hours. The training provided by the Group for Taishin FHC and subsidiaries including Taishin Bank, Taishin Securities, Taishin Securities Investment Trust, Taishin Securities Investment Advisory, and Taishin D. A. Leasing included physical, online e-learning, and external education courses. Total training hours amounted to 32,558.01 hours and employees registered 21,069 attendances in such courses. The course contents encompassed reflections and outlook of anti-money laundering risk management, compliance and audit education, anti-proliferation of weapons of mass destruction, customer risk review, system operations, due care in business operations, suspicious transaction patterns, cases, and reporting, and explanation of common errors with more than 100 courses. The 2022 AML and CFT training completion rate was 100%.
AML and CFT training in 2022
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Periodic training courses that share cases (common types of deficiencies, case sharing, etc.)
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6,082
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5,007.77
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Internal online training courses and tests (AML/CFT regulations for the financial
industry and communication)
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10,380
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19,658.96
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Online training course offered by the internal compliance/dedicated unit (international sanctions on proliferation financing, US OFAC sanctions, customer due diligence, and investigation of suspected ML/TF)
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2,867
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1,819.39
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In-person training courses offered by the internal compliance/dedicated unit
(domestic and overseas regulations, national risk assessment report on ML/TF
and proliferation financing, and sharing of practices)
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1,245
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1,639.05
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In-person training courses provided by external professional institutions (international conferences on financial supervision of AML/CFT and proliferation financing, types of AML, and FinTech and AML)
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145
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728
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Required continuing education courses each year (introduction to laws and
regulations, investigation of suspicious transactions, analysis of crimes, anti-corruption, etc.)
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350
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3,704.84
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Total
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21,069
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32,558.01
Note: As the employees of the Group changed many times in the year, the number of participants is used for calculations.
The Investigation Bureau investigated the significant increase in cases of suspected money laundering reported by Taishin Bank based on incentives (as shown in the table below). Taishin Bank discovered online banking fraud patterns and provided the Investigation Bureau with information for issuing notices to all financial institutions as reference at the end of 2022. The actions demonstrated Taishin Bank's hard work in AML/CFT operations.
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Number of feedback incentive cases of the Investigation Bureau
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111
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87
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90
