Cracking Down on Crypto and Third-Party Payment Illicit Funds! Executive Yuan Approves 3 Major Amendments to Anti-Money Laundering Act – Over 100 Million NTD in Money Laundering Could Lead to 10-Year Sentence

The Executive Yuan meeting today (13) approved the draft partial amendments to the Anti-Money Laundering Act prepared by the Ministry of Justice, which will now be sent to the Legislative Yuan for deliberation. This legislative revision aims to strongly combat fraud and underground finance by formally incorporating unregistered, unlisted, or unauthorized virtual asset and third-party payment service operators into the scope of specific money laundering crimes. For cases involving amounts exceeding 100 million NTD, penalties will be enhanced, with a maximum sentence of up to 10 years in prison. Additionally, an inter-agency consultation mechanism between financial institutions and service providers will be established to comprehensively improve financial transparency and alignment with international standards.

As underground financial activities and fraudulent schemes continue to evolve, many criminal groups exploit virtual assets and third-party payment platforms to launder money, attempting to bypass traditional financial oversight. To close these financial loopholes, the Executive Yuan today finalized the draft amendments to the Anti-Money Laundering Act, aiming to thoroughly crack down on underground remittance and cryptocurrency-based money laundering activities.

Executive Yuan Premier Cho Jung-tai stated that anti-money laundering efforts are a crucial foundation for combating crime and maintaining financial order. As criminal methods and fund transfer techniques rapidly change, relevant laws must continuously advance in line with international standards and practical needs. This legislative revision is designed to strengthen Taiwan’s financial defense network, ensuring greater protection of public assets.

The amendment focuses on three core areas. First, it formally includes criminal acts related to operating unregistered, unlisted, or unauthorized virtual asset and third-party payment services within the scope of specific money laundering offenses. Individuals or entities engaged in such unregistered virtual asset or third-party payment businesses who are involved in money laundering with amounts exceeding 100 million NTD will face imprisonment from three to ten years, significantly increasing deterrence against underground financial operations.

Second, in accordance with international standards set by the Financial Action Task Force (FATF), the amendment clearly defines the legal concept of 'beneficial owners' and adds provisions for reviewing and identifying them. It authorizes the competent central authorities, in coordination with the Ministry of Justice and other relevant agencies, to establish detailed implementation rules, thereby enhancing transparency in corporate and trust structures and preventing bad actors from concealing identities through nominee arrangements or complex equity frameworks.

Third, the amendment establishes cross-agency information sharing and consultation mechanisms between financial institutions and virtual asset service providers, both within and across industries. In the past, criminal groups often exploited information gaps between different sectors to conduct money laundering. Going forward, through real-time data access and inquiry systems, financial institutions and virtual asset operators will be able to conduct timely verification and risk management more efficiently, enabling precise打击 against terrorist financing and money laundering.

After the bill is submitted to the Legislative Yuan, Premier Cho urged the Ministry of Justice to actively communicate with all party caucuses in the legislature to expedite the passage of the amendment. He also instructed the Ministry of Justice, together with the Financial Supervisory Commission and other relevant agencies, to swiftly finalize subordinate regulations and supporting measures, further strengthening inter-agency cooperation to ensure the effective implementation and enforcement of the new law.