Anti-money Laundering and Countering the Financing of Terrorism
Management of AML and CFT
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 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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Zero tolerance
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Not allowing any violation of local regulations against money laundering or terrorist financing.
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Risk assessment and execution of control measures
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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
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Complying with the target customer segment management guidelines established by individual relevant subsidiaries according to their own risk assessments.
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
To enhance the management’s and employees’ understanding of anti-money laundering and combating the financing of terrorism (AML/CFT), the total training hours are 705 of AML and CFT for Board of Directors and AML officers/ employees in 2019. Also, our education and training methods in 2019 provided to the staff in our holding, subsidiaries, banks, securities, investment banking, investment consulting, insurance agency and leasing, included offline and online internal training as well as external education and training courses. The total number of education and training hours was 9,996 and the number of participating employees was 15,509. The course content of nearly 60 sessions covered legal compliance, auditing and communication, trends in counter-proliferation of weapons, AML/CFT, customer risk assessment, system operations, points of attention during business operations, suspicious transaction patterns, case studies and clarification of notifications, and explanations for common oversights. The Company achieved 100% completion rate for AML/CFT training in 2019.
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Board of Directors and AML officers/employees
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33
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705
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100
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100
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All staff
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15,509
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9,996
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100
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100
Note: Anti-Money Laundering Division (AMLD) of Investigation Bureau, AMLD is the Financial Intelligence Unit in Taiwan. AMLD will accept the STRs by financial institutions to analysis and distribute these STRs to the related responsible units.
