Legislative Yuan passed a third reading amendment to the Anti-Money Laundering Act, unregistered virtual currency exchanges and foreign exchanges could face up to two years imprisonment

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Regulations on Virtual Asset Services and Third-Party Payments to be Implemented

The Taiwan Legislative Yuan today passed amendments to the Anti-Money Laundering Act in the third reading, formally bringing businesses or individuals providing virtual asset services and third-party payment services under regulatory oversight. In the future, these service providers must comply with anti-money laundering measures, service energy registration or filing, or face a maximum penalty of up to 2 years in prison or a fine of up to NT$5 million.

Increased Penalties for General Money Laundering Offenses

This amendment also revised the penalties for general money laundering offenses. The third reading stipulates that those involved in acts listed in Article 2 of the Anti-Money Laundering Act will face imprisonment of 3 to 10 years and a fine of up to NT$100 million. For cases where the laundered property or benefits do not exceed NT$100 million, the penalty will be imprisonment from 6 months to 5 years and a fine of up to NT$50 million. Attempted offenses are also punishable.

Note: Article 2 of the Anti-Money Laundering Act - Concealing or disguising the nature, source, destination, location, ownership, disposal, or other rights or interests of specific crime proceeds.

Legislative Process from Preliminary Review to Third Reading

The Judiciary and Legal Committee of the Legislative Yuan passed the amendment bill in the preliminary review on June 3, but some articles were retained and submitted for party negotiations. On July 12, Legislative Yuan President Han Kuo-yu presided over party negotiations, where only the general money laundering offense penalties were retained. All parties supported the increased penalties. Today, the entire bill was voted on in the Legislative Yuan, and the motion for further amendment proposed by the Kuomintang and Taiwan People's Party Legislative Yuan caucuses was passed.

Regulations for Providing Virtual Asset Services

The third reading specifies that businesses or individuals providing virtual asset services and third-party payment services must complete anti-money laundering measures and service energy registration or filing with the competent authority, or they will not be allowed to provide relevant services. Overseas businesses or individuals providing such services must also register their companies or branches in accordance with the Company Act and complete the aforementioned registration or filing before offering services within Taiwan.

Penalties for Violations

The articles stipulate that those who provide virtual asset services or third-party payment services without completing the registration or filing as required, or continue to provide services after their anti-money laundering registration has been revoked or expired, will face imprisonment of up to 2 years, detention, or a fine of up to NT$5 million.

Special Regulations on Money Laundering Offenses

The third reading also includes regulations for special money laundering offenses, such as using false information to apply for account openings with financial institutions or businesses or individuals providing virtual asset services and third-party payment services, or obtaining and using another person's account by illegal means, punishable by imprisonment from 6 months to 5 years and a fine of up to NT$50 million.

Reduction of Sentence for Self-Reporting

Furthermore, the articles stipulate that those who violate Articles 19 to 21 of the Anti-Money Laundering Act and voluntarily surrender and surrender all proceeds after the crime may have their sentence reduced or exempted; if this leads to the seizure of all money laundering proceeds or benefits by the judicial authorities, or the detection of other principal offenders or accomplices, their sentence may also be exempted.

Prosecutorial Investigation Authority

To investigate money laundering crimes, the articles also specify that prosecutors may, by virtue of their authority or through judicial police officers, submit a request for a controlled investigation plan, along with relevant information, to the chief prosecutor for approval, who will then issue an investigation command.