| Legislative： |
1.Promulgated on April 30 , 2015
2.Amended on July 26, 2017 |
| Content： |
1. These Directions are adopted to strengthen the
anti-money laundering and countering terrorism
financing (AML/CFT) regime of the Republic of
China (R.O.C.), and to enhance soundness of the
internal control and internal audit system of the
credit departments of farmers’ and fishermen’s
associations (collectively referred to as the
“credit departments” hereunder).
2. In matters related to AML/CFT internal controls, a
credit department shall comply with these
Directions as well as relevant provisions in the
“Money Laundering Control Act”,“ Terrorism
Financing Prevention Act”, “Regulations Governing
the Deposit Accounts and Suspicious or Unusual
Transactions” and “Directions for Confirming
Customer Identity in Domestic Remittance Operations
of Financial Institutions.”
3. A credit department should assess the money
laundering or terrorist financing risks that may
arise in relation to the development of new
products or services or new business practices
(including new delivery mechanisms, use of new
technologies for pre-existing or new products or
business practices) and est ablish relevant risk
management measures to mitigate those risks.
4. Credit departments shall observe the following
provisions when conducting wire transfers：
(1) A credit department shall provide information on
the originator and the beneficiary by any of the
means below when conducting domestic wire
transfers involving NTD:
A. Include in the wire transfer information on the
originator and the beneficiary; or
B. Include in the wire transfer the account number
or a unique transaction reference number which
permits traceability of the transaction and
make information on the originator and the
beneficiary available within three(3) business
days of receiving a request from the
beneficiary financial institution or from
appropriate competent authorities. However when
a prosecutors office or judicial police office
requests the provision of relevant information
immediately, the credit department shall
respond accordingly.
(2) A credit department shall maintain all information
on the originator and the beneficiary.
(3) The aforementioned originator information shall
include: name of the originator, the originator
account number where such an account is used to
process the transaction (if not available, a
unique transaction reference number that permits
traceability), the originator’s address, or
national identity number, or date and place of
birth.
(4) The aforementioned beneficiary information shall
include: name of the beneficiary and the
beneficiary account number (if not available, a
unique transaction reference number that permits
traceability).
(5) A credit department that fails to conduct wire
transfers in compliance with the preceding four
subparagraphs are not allowed to carry out wire
transfer business.
5. Rules regarding internal control system:
(1) The AML/CFT internal control system established by
a credit department and its amendments thereafter
shall be approved by its board of directors and
contain the following particulars:
A. The policies and procedures to identify, assess
and manage its money laundering and terrorist
financing risks;
B. An AML/CFT program established based on money
laundering and terrorist financing risks and
business size to manage and mitigate identified
risks, which also includes enhanced control
measures for higher risk situations; and
C. Standard operational procedures for monitoring
compliance with AML/CFT regulations and for the
implementation of AML/CFT program, which shall
be included in the self-inspection and internal
audit system, and enhanced if necessary.
(2) The money laundering and terrorist financing risk
identification, assessment and management
mentioned in Item A of the preceding subparagraph
should cover at least customers, geographic areas,
products and services, transactions and delivery
channels and observe the following provisions:
A. A risk assessment report should be produced.
B. Risk assessment should consider all risk
factors to determine the level of overall risk,
and appropriate measures to mitigate the risks.
C. There should be a risk assessment update
mechanism in place to ensure that risk data are
kept up-to-date.
D. When risk assessment is completed or updated,
the risk assessment report shall be submitted
to the Council of Agricultural, Executive Yuan
(referred to as the “Council” hereunder) for
recordation.
(3) The AML/CFT program mentioned in Item B of
Subparagraph (1) shall include the following
policies, procedures and controls:
A. Verification of customer identity;
B. Checking of names of customers and trading
counterparties;
C. Ongoing monitoring of accounts and
transactions;
D. Correspondent banking business;
E. Record keeping;
F. Reporting of currency delivery above a certain
amount;
G. Reporting of suspicious transactions;
H. Appointment of a chief compliance officer to
take charge of AML/CFT compliance matters;
I. Employee screening and hiring procedure;
J. Ongoing employee training program;
K. An independent audit function to test the
effectiveness of AML/CFT system; and
L. Other matters required by the AML/CFT
regulations and the Council.
(4) The board of director of a farmers’or
fishermen’s association should ensure the
establishment and maintenance of an appropriate
and effective AML/CFT internal control system. The
board of directors and secretary-general should
understand its money laundering and terrorist
financing risks and the operation of its AML/CFT
program, and adopt measures to create a culture of
AML/CFT compliance.
6. Rules regarding the chief AML/CFT compliance
officer of farmers’ and fishermen’s associations
are as follows:
(1) A credit department should be staffed with
adequate manpower and resources dedicated to
AML/CFT that are appropriate to the size and risks
of the business. The secretary-general of a
farmers’ or fishermen’s association shall
appoint a senior officer to act as the chief
AML/CFT compliance officer and vest the officer
full authority in AML/CFT implementation, and make
sure that the chief AML/CFT compliance officer
does not hold concurrent posts that may have a
conflict of interest with their AML/CFT
responsibilities.
(2) The chief AML/CFT compliance officer mentioned in
the preceding subparagraph shall be charged with
the following duties:
A. Supervising the planning and implementation of
policies and procedures for identifying,
assessing and monitoring money laundering and
terrorist financing risks.
B. Coordinating and supervising association-wide
AML/CFT risk identification and assessment.
C. Monitoring and controlling money laundering and
terrorist financing risks.
D. Developing an AML/CFT program.
E. Coordinating and supervising the implementation
of AML/CFT program.
F. Confirming compliance with AML/CFT regulations,
including the relevant compliance template or
self-regulatory rules produced by the
Agricultural Bank of Taiwan and approved by the
Council.
G. Supervising the reporting on suspicious
transactions and on the properties or property
interests and location of individuals or legal
entities designated by the Terrorism Financing
Prevention Act to the Investigation Bureau,
Ministry of Justice.
(3) The chief AML/CFT compliance officer mentioned in
Subparagraph 1 hereof should report to the board
of directors and the board of supervisors at least
semiannually, or promptly report to the board of
directors, the board of supervisors and the
secretary-general whenever a major regulatory
violation is discovered.
7. Rules regarding the implementation, audit and
statement of internal AML/CFT control system are as
follows:
(1) A credit department and its sub-departments shall
appoint a senior manager to act as the supervisor
to take charge of supervising the AML/CFT related
matters and self-inspection conducted by the
credit department and sub-departments.
(2) The internal auditors of farmers and fishermen’s
associations shall audit the following matters and
produce audit opinions:
A. Whether the money laundering and terrorist
financing risk assessment and the AML/CFT
program meet the regulatory requirements and
are vigorously implemented; and
B. The effectiveness of AML/CFT program.
(3) The secretary-general of a farmers’or
fishermen’s association should oversee that its
credit department and sub-departments prudently
evaluate and review the implementation of internal
AML/CFT control system. The chairman,
secretary-general, internal auditor and chief
AML/CFT compliance officer shall jointly issue a
statement on internal AML/CFT control (see
attached), which shall be submitted to the board
of directors for approval, and disclosed on the
website of the farmers’ or fishermen’s
association and filed via a website designated by
the Council in three (3) months after the end of
each fiscal year.
8. Rules regarding the employee hiring and training:
(1) A credit department should establish prudent and
appropriate procedures for employee screening and
hiring, including examining whether the
prospective employee has character integrity and
the professional knowledge required to perform
their duties.
(2) The chief AML/CFT compliance officer and AML/CFT
personnel of a farmers’ or fishermen’s
association, and the AML/CFT supervisor of its
credit department and sub-departments shall
possess one of the following qualification
requirements in three(3) months after appointment/
assignment to the post and the credit department
shall set out relevant control mechanism to ensure
compliance with the provisions hereof:
A. Having served as AML/CFT personnel on a
full-time basis for at least three (3) years;
B. Having attended not less than 24 hours of
courses offered by institutions recognized by
the Council or offered by Agricultural Bank of
Taiwan, and passed the exams and received
completion certificates therefor; or
C. Having received a domestic or international
AML/CFT professional certificate issued by an
institution recognized by the Council.
(3) Personnel mentioned in the preceding subparagraph
who are appointed/assigned to the post prior to
December 31, 2017 may be deemed as qualified if he
or she meets any of the qualification requirements
below:
A. Meeting the qualification requirement set out
in Item A or Item C of the preceding
subparagraph prior to December 31, 2017.
B. Meeting the qualification requirement set out
in item 2 of the preceding subparagraph within
the time periods specified below:
a. For the chief AML/CFT compliance officer and
AML/CFT personnel of a farmers’ or
fishermen’s association, meeting the
qualification requirement before December 31,
2017 or within six (6) months after
appointment/assignment to the post.
b. For the AML/CFT supervisor of credit
department and its sub-departments, meeting
the qualification requirement before December
31, 2017 or within six (6) months after
appointment/assignment to the post.
(4) The chief AML/CFT compliance officer and AML/CFT
personnel of a farmers’ or fishermen’s
association, and the AML/CFT supervisor of its
credit department and sub-departments shall attend
not less than 12 hours of training on AML/CFT
offered institutions recognized by the Council or
by the Agricultural Bank of Taiwan or internal or
external training units accepted by the chief
AML/CFT compliance officer mentioned in
Subparagraph 1 of Point 6 herein every year. The
training shall cover at least newly amended laws
and regulations, trends and patterns of money
laundering and terrorist financing risks. If the
person has obtained a domestic or international
AML/CFT professional certificate issued by an
institution recognized by the Council in a year,
the certificate may be used to offset the training
hours for the year.
(5) A farmers’ or fishermen’s association shall
arrange appropriate hours of training of suitable
contents on AML/ CFT in view of the nature of its
business for its directors, supervisors,
secretary-general, internal auditors and business
personnel of credit department to familiarize them
with their AML/CFT duties and equip them with the
professional knowhow to perform their duties.
9. If a farmers’ or fishermen’s association violates
these Directions, the Council may take appropriate
sanctions commensurate with the seriousness of the
violations in accordance with Article 33 of the
Agricultural Finance Act to which Articles 61-1 of
the Banking Act applies mutatis mutandis as well as
Subparagraph 2, Paragraph 2 of Article 50 and
Article 51 of the Agricultural Finance Act.
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