Article 1
These Regulations are enacted pursuant to the front
section of Paragraph 4, Article 7, Paragraph 3 of
Article 8, Paragraph 3 of Article 9 and Paragraph 3 of
Article 10 of the Money Laundering Control Act
(referred to as the “Act” hereunder).

Article 2
Terms used in these Regulations are defined as follows
:
1. The term “agricultural financial institution”
   shall mean credit departments of farmers’
   associations, credit departments of fishermen’s
   associations (collectively referred to as “credit
   departments” hereunder) and Agricultural Bank of
   Taiwan.
2. The term “a certain amount” shall mean NT$500,000
   (including the foreign currency equivalent thereof)
   .
3. The term “cash transaction” shall mean cash
   receipt or payment in a single transaction
   (including all transactions recorded on cash
   deposit or withdrawal vouchers for accounting
   purpose), or the transaction of currency exchange.
4. The term “customer” shall mean the customers of
   agricultural financial institutions.
5. The term “beneficial owner” shall mean a natural
   person who ultimately owns or controls a customer
   and/or the natural person on whose behalf a
   transaction is being conducted, including those
   persons who exercise ultimate effective control
   over a legal person or arrangement.
6. The term “risk-based approach” (RBA) shall mean
   agricultural financial institutions should
   identify, assess and understand the money
   laundering and terrorist financing (ML/TF) risks to
   which they are exposed and take anti-money
   laundering and countering terrorist financing
   (AML/CFT) measures commensurate to those risks in
   order to mitigate them. Based on the RBA,
   agricultural financial institutions should adopt
   enhanced control measures for higher risk
   situations, and adopt relatively simplified control
   measures for lower risk situations to allocate
   resources efficiently, and use the most appropriate
   and effective approach to mitigate the identified
   ML/TF risks.

Article 3
An agricultural financial institution shall comply
with the following provisions in undertaking customer
due diligence (CDD) measures:
1. An agricultural financial institution shall not
   accept anonymous accounts or accounts in fictitious
   names for establishing or maintaining business
   relationship.
2. An agricultural financial institution shall
   undertake CDD measures when:
A. establishing business relations with any customer;
B. carrying out occasional transactions with respect
   to:
   (1) a cash transaction above a certain amount or
       multiple apparently related cash transactions
       that is above a certain amount when combined;
       or
   (2) a cross-border wire transfer involving
       NTD30,000 or more (including the foreign
       currency equivalent thereof);
C. there is a suspicion of money laundering or
   terrorist financing; or
D. The agricultural financial institution has doubts
   about the veracity or adequacy of previously
   obtained customer identification data.
3. The CDD measures to be taken by an agricultural
   financial institution are as follows:
A. Identifying and verifying the customer’s identity
   using reliable, independent source documents, data
   or information, and in addition, retaining copies
   of the customer’s identity documents or record the
   relevant information thereon.
B. Verifying that any person purporting to act on
   behalf of the customer is so authorized,
   identifying and verifying the identity of that
   person using reliable, independent source
   documents, data or information where the customer
   opens an account or conducts a transaction through
   an agent, and in addition, retaining copies of the
   person’s identity documents or record the relevant
   information thereon.
C. Taking reasonable measures to identify and verify
   the identity of the beneficial owner of a customer,
   including using reliable source data or information
   .
D. Enquiring information on the purpose and intended
   nature of the business relationship when
   undertaking CDD measures, and obtaining relevant
   information in view of the circumstances.
4. When the customer is a legal person, an
   organization or a trustee, an agricultural
   financial institution shall understand the business
   nature of the customer or trust (including
   trust-like legal arrangements) and obtain at least
   the following information on the customer or the
   trust to identify and verify the identity of the
   customer:
A. Name, legal form and proof of existence of customer
   or trust.
B. The charter or similar power document that
   regulates and binds the customer or the trust,
   except for any of the following circumstances:
   (1) Customers/entities listed under Item C of
       Subparagraph 6 hereof and insurance products
       listed under Item D of Subparagraph 6 hereof
       are free of the situation described in the
       proviso of Subparagraph 3, Article 6 herein.
   (2) The customer who is an organization
       acknowledges that it does not have a charter or
       similar power document.
C. The names of those persons having a senior
   management position in the customer.
D. The address of the registered office of the
   customer, and the address of its principal place of
   business.
5. When the customer is a legal person, an
   agricultural financial institution shall understand
   whether the customer is able to issue bearer shares
   and adopt appropriate measures for customers who
   have issued bearer shares to ensure its beneficial
   owners are kept up-to-date.
6. When the customer is a legal person, an
   organization or a trustee, an agricultural
   financial institution shall, in accordance with
   Item C of Subparagraph 3 hereof, understand the
   ownership or control structure of the customer or
   the trust, and obtain the following information to
   identify the beneficial owners of the customer and
   take reasonable measures to verify the identity of
   such persons:
A. For legal persons or organizations:
   (1) The identity of the natural persons who
       ultimately have a controlling ownership
       interest in a legal person. A controlling
       ownership interest refers to owning more than
       25 percent of a legal person’s shares or
       capital; an agricultural financial institution
       may request the shareholder list or other
       documents from the customer to assist in the
       identification.
   (2) To the extent where no natural person exerting
       control through ownership interests is
       identified or that there is doubt as to whether
       the person(s) with the controlling ownership
       interest are the beneficial owner(s) under (1)
       above, an agricultural financial institution
       should identify the identity of the natural
       persons (if any) exercising control of the
       customer through other means.
   (3) Where no natural person is identified under (1)
       or (2) above, an agricultural financial
       institution shall identify the identity of the
       relevant natural person who holds the position
       of senior managing official.
B. For trustees: the identity of the settlor(s), the
   trustee(s), the trust supervisor, the
   beneficiaries, and any other person exercising
   ultimate effective control over the trust, or the
   identity of persons in equivalent or similar
   positions.
C. Except for situations provided for in the proviso
   of Subparagraph 3 of Article 6 herein or where the
   customer has issued bearer shares, an agricultural
   financial institution is not subject to the
   requirements of identifying and verifying the
   identity of beneficial owner set out under Item C
   of Subparagraph 3 hereof, provided the customer or
   a person having a controlling ownership interest in
   the customer is
   (1) a R.O.C government entity;
   (2) an enterprise owned by the R.O.C government;
   (3) a foreign government entity;
   (4) a public company and its subsidiaries;
   (5) an entity listed on a stock exchange outside of
       R.O.C. that is subject to regulatory disclosure
       requirements of its principal shareholders, and
       the subsidiaries of such entity;
   (6) a financial institution supervised by the
       R.O.C. government, and an investment vehicles
       managed by such institution;
   (7) a financial institution incorporated or
       established outside R.O.C. that is subject to
       and supervised for compliance with AML/CFT
       requirements consistent with standards set by
       the Financial Action Task Force on Money
       Laundering (FATF), and an investment vehicle
       managed by such institution; or
   (8) a fund administered by a R.O.C. government
       entity; or
   (9) an employee stock ownership trust or an
       employee savings trust.
D. Except for situations provided for in the proviso
   of Subparagraph 3 of Article 6 herein, an
   agricultural financial institution is not subject
   to the requirements of identifying and verifying
   the identity of beneficial owner set out under
   Item C of Subparagraph 3 hereof when the customer
   purchases property insurance, accident insurance,
   health insurance or an insurance product that does
   not require policy value reserve.           
7. An agricultural financial institution should not
   establish a business relationship or carry out
   occasional transactions with a customer before
   completing the CDD process. However, an
   agricultural financial institution may first obtain
   information on the identity of the customer and any
   beneficial owner and complete the verification
   following the establishment of business
   relationship, provided that:
A. money laundering and terrorist financing risks are
   effectively managed, including adopting risk
   management procedures with respect to the
   conditions under which a customer may utilize the
   business relationship to complete a transaction
   prior to verification;
B. it would be essential not to interrupt the normal
   conduct of business with the customer; and
C. verification of the identities of customer and
   beneficial owner will be completed as soon as
   reasonably practicable following the establishment
   of business relationship. The agricultural
   financial institution shall terminate the business
   relationship if verification cannot be completed as
   soon as reasonably practicable and inform the
   customer in advance.
8. Where an agricultural financial institution is
   unable to complete the required CDD process on a
   customer, it should consider reporting suspicious
   transactions in relation to the customer.
9. If an agricultural financial institution suspects
   that a customer or transaction may relate to money
   laundering or terrorist financing activities and
   reasonably believes that performing the CDD process
   will tip-off the customer, it may choose not to
   pursue that process and file a suspicious
   transactions report instead.     

Article 4
If there exists any of the following situations in the
CDD process, an agricultural financial institution
should decline to establish business relationship or
carry out any transaction with the customer:
1. The customer is suspected of opening an anonymous
   account or using a fake name, a nominee, a shell
   entity, or a shell corporation to open an account;
2. The customer refuses to provide the required
   documents for identifying and verifying his/her
   identity;
3. Where a customer opens an account through an agent,
   it is difficult to check and verify the facts of
   agency and identity related information;
4. The customer uses forged or altered identification
   documents;
5. The customer only provides photocopies of the
   identification documents; the preceding provision
   does not apply to for businesses where a photocopy
   or image file of the identification document
   supplemented with other control measures are
   acceptable;
6. Documents provided by the customer are suspicious
   or unclear, or the customer refuses to provide
   other supporting documents, or the documents
   provided cannot be authenticated;
7. The customer procrastinates in providing
   identification documents in an unusual manner;
8. The customer is an individual, legal entity or
   organization sanctioned under the Terrorism
   Financing Prevention Act or a terrorist or
   terrorist group identified or investigated by a
   foreign government or an international anti-money
   laundering organization, except for payments made
   under Subparagraphs 2 ~ 4, Paragraph 1, Article 6
   of the Terrorism Financing Prevention Act; or
9. Other unusual circumstances exist in the process of
   establishing business relationship and the customer
   fails to provide reasonable explanations.

Article 5
The CDD measures of an agricultural financial
institution shall include ongoing customer due
diligence and observe the following provisions:
1. An agricultural financial institution shall apply
   CDD measures to existing customers on the basis of
   materiality and risk, and to conduct due diligence
   on such existing relationships at appropriate
   times, taking into account whether and when CDD
   measures have previously been undertaken and the
   adequacy of data obtained. The aforementioned
   appropriate times include at least:
A. When the customer opens a new account or enters new
   business relationships;
B. When it is time for periodic review of the customer
   scheduled on the basis of materiality and risk; and
C. When it becomes known that there is a material
   change to  customer’s identity and background
   information.
2. An agricultural financial institution shall
   scrutinize transactions taken place during its
   business relationship with a customer to ensure
   that the transactions being conducted are
   consistent with the institution’s knowledge of the
   customer, the customer’s business and risk
   profile, including, where necessary, the source of
   funds.
3. An agricultural financial institution shall
   periodically review the adequacy of customer
   identification information obtained in respect of
   customers and beneficial owners and ensure that the
   information is kept up to date, particularly for
   higher risk categories of customers, for whom the
   agricultural financial institution should conduct
   review at least once every year.
4. An agricultural financial institution is entitled
   to rely on the identification and verification
   steps that it has already undertaken. Therefore an
   agricultural financial institution is allowed not
   to repeatedly identify and verify the identity of
   each customer every time that a customer conducts a
   transaction unless it has doubts about the veracity
   or adequacy of that information, discovers that the
   customer is involved in a transaction suspicious of
   money laundering or terrorist financing, or
   discovers that there is a material change in the
   way that the customer’s account is operated, which
   is not consistent with the customer’s business
   profile. In such events, the agricultural financial
   institution shall conduct CDD again in accordance
   with the provisions of Article 3 herein.

Article 6　
An agricultural financial institution shall determine
the extent of applying CDD and ongoing CDD measures
under Subparagraph 3 of Article 3 herein and the
preceding Article using a risk-based approach (RBA)
and observe the following provisions:
1. For higher risk circumstances, an agricultural
   financial institution shall apply enhanced CDD or
   ongoing CDD measures by adopting additionally at
   least the following enhanced measures:
A. Obtaining the approval of senior management before
   establishing or entering a new business
   relationship;
B. Adopting reasonable measures to understand the
   sources of wealth and the source of funds of the
   customer; source of funds means the actual source
   of funds from where the funds are derived; and
C. Adopting enhanced ongoing monitoring of business
   relationship.
2. For customers from high ML/TF risk countries or
   regions, an agricultural financial institution
   shall conduct enhanced CDD measures consistent with
   the risks identified.
3. For lower risk circumstances, an agricultural
   financial institution may adopt simplified CDD
   measures, which shall be commensurate with the
   lower risk factors. However simplified CDD measures
   are not allowed in any of the following
   circumstances:
A. Where the customers are from or in countries or
   regions known to have inadequate AML/CFT regimes,
   including but not limited to those which designated
   by international organizations on AML/CFT as
   countries or regions with serious deficiencies in
   their AML/CFT regime, and other countries or
   regions that do not or insufficiently comply with
   the recommendations of international organizations
   on AML/CFT as forwarded by the Council of
   Agricultural, Executive Yuan (referred to as
  “the Council” hereunder); or
B. Where an agricultural financial institution
   suspects that money laundering or terrorist
   financing is involved.

Article 7
An agricultural financial institution should perform
its own CDD operation. However if it is otherwise
permitted by law or the Council that an agricultural
financial institution may reply on third parties to
perform the identification and verification of the
identities of customers, agents and beneficial owners
or the purpose and intended nature of the business
relationship, the agricultural financial institution
relying on the third party shall still bear the
ultimate responsibility for CDD measures and comply
with the following provisions:
1. An agricultural financial institution relying on a
   third party should be able to immediately obtain
   the necessary CDD information.
2. An agricultural financial institution should take
   adequate steps to satisfy itself that copies of
   identification data and other relevant
   documentation relating to the CDD requirements will
   be made available from the third party upon request
   without delay.
3. An agricultural financial institution shall make
   sure that the third party it relies on is
   regulated, supervised or monitored, and has
   appropriate measures in place for compliance with
   CDD and record-keeping requirements.
4. An agricultural financial institution shall make
   sure that the jurisdiction at where the third party
   it relies on is based has AML/CFT regulations in
   place that are consistent with the standards set
   out by the FATF.

Article 8
Agricultural financial institutions shall observe the
following provisions in checking the names of
customers and trading counterparties:
1. An agricultural financial institution shall
   establish policies and procedures for checking the
   names of customers and trading counterparties using
   a risk-based approach to detect, match and filter
   customers, senior managerial officers or beneficial
   owners of customers, or trading counterparties that
   are individuals, legal entities or organizations
   sanctioned under the Terrorism Financing Prevention
   Act or terrorists or terrorist groups identified or
   investigated by a foreign government or an
   international anti-money laundering organization.
2. The policies and procedures for checking the names
   of customers and trading counterparties of an
   agricultural financial institution shall include at
   least matching and filtering logics, implementation
   procedures and inspection standards, and shall be
   documented.
3. An agricultural financial institution shall
   document its name and account checking operations
   and maintain the records for a time period in
   accordance with Article 11 herein.

Article 9
Agricultural financial institutions shall observe the
following provisions for ongoing monitoring of
accounts or transactions:
1. An agricultural financial institution shall use a
   database to consolidate basic information and
   transaction information on all customers for
   inquiries for AML/CFT purpose so as to strengthen
   the institution’s account or transaction
   monitoring ability. An agricultural financial
   institution shall also establish internal control
   procedures for requests and inquiries as to
   customer information made by various entities, and
   shall exercise care to ensure the confidentiality
   of the information.
2. An agricultural financial institution shall
   establish policies and procedures for account or
   transaction monitoring using a risk-based approach
   and utilize information system to assist in the
   detection of suspicious ML/FT transactions.
3. An agricultural financial institution shall review
   its policies and procedures for account or
   transaction monitoring based on AML/CFT
   regulations, nature of customers, business size and
   complexity, money laundering and terrorist
   financing related trends and information obtained
   from internal and external sources, and the results
   of internal risk assessment, and update those
   policies and procedures periodically.
4. The policies and procedures for account or
   transaction monitoring of an agricultural financial
   institution shall include at least the procedures
   for establishing a complete monitoring system, and
   carrying out the setting of parameters, threshold
   amounts, alerts and monitoring operations, the
   procedures for checking the monitored cases and
   reporting standards, and shall be documented.
5. A complete monitoring system mentioned in the
   preceding Subparagraph shall include the patterns
   published by the trade associations in the case of
   Agricultural Bank of Taiwan and patterns published
   by the Agricultural Bank of Taiwan as well as
   additional monitoring patterns in reference to the
   money laundering and terrorist financing risk
   assessment or daily transaction information of the
   agricultural financial institution itself in the
   case of credit departments.
6. An agricultural financial institution shall
   document its ongoing account or transaction
   monitoring operation and maintain the records for a
   time period in accordance with Article 11 herein.

Article 10
When conducting CDD, an agricultural financial
institution should use self-established database or
information obtained from external sources to
determine whether a customer or beneficial owner or
senior managerial officer of a customer is a person
who is or has been entrusted with a prominent function
by a R.O.C. government, a foreign government or an
international organization (referred to as politically
exposed persons (PEPs) hereunder) and observe the
following provisions:
1. For a customer or beneficial owner determined to be
   a current PEP of a foreign government, an
   agricultural financial institution shall treat the
   customer directly as a high-risk customer, and
   adopt enhanced CDD measures under Subparagraph 1 of
   Article 6 herein.
2. For a customer or beneficial owner determined to be
   a current PEP of a R.O.C. government or an
   international organization, an agricultural
   financial institution shall assess risks when .
   establishing business relationship with the person
   and conduct annual review thereafter. In case of
   higher risk business relationship with such
   customers, the institution shall adopt enhanced CDD
   measures under Subparagraph 1 of Article 6 herein.
3. For a senior managerial officer of a customer
   determined to be a current PEP of a R.O.C.
   government, a foreign government or an
   international organization, an agricultural
   financial institution shall determine whether to
   apply the enhanced CDD measures under Subparagraph
   1 of Article 6 by considering the level of
   influence the officer has on the customer.
4. For former PEPs of R.O.C. or foreign governments or
   international organizations, an agricultural
   financial institution shall the level of influence
   that the individual could still exercise by
   considering relevant risk factors and determine
   whether to apply the provisions of the preceding
   three Subparagraphs based on the RBA.
5. The preceding four Subparagraphs apply to family
   members and close associates of PEPs. The scope of
   family members and close associates mentioned above
   will be determined in a manner stipulated in the
   latter section of Paragraph 4, Article 7 of the Act
   .
Provisions of the preceding Paragraph do not apply
when the beneficial owner or senior managerial officer
of a customer specified under sub-items (1) ~ (3) and
(8) of Item C, Subparagraph 6, Article 3 herein is a
PEP.

Article 11
An agricultural financial institution shall keep
records on all business relations and transactions
with its customers in hard copy or electronical form
and in accordance with the following provisions:
1. An agricultural financial institution shall
   maintain all necessary records on transactions,
   both domestic and international, for at least five
   years or a longer period as otherwise required by
   law.
2. An agricultural financial institution shall keep
   all the following information for at least five
   years or a longer period as otherwise required by
   law after the business relationship is ended, or
   after the date of the occasional transaction:
A. All records obtained through CDD measures, such as
   copies or records of official identification
   documents like passports, identity cards, driving
   licenses or similar documents.
B. Account files or contract files.
C. Business correspondence, including inquiries to
   establish the background and purpose of complex,
   unusual large transactions and the results of any
   analysis undertaken.
3. Transaction records maintained by an agricultural
   financial institution must be sufficient to permit
   reconstruction of individual transactions so as to
   provide, if necessary, evidence for prosecution of
   criminal activity.
4. An agricultural financial institution shall ensure
   that information on transaction records and CDD
   information will be swiftly made available to the
   competent authorities when such requests are made
   with appropriate authority.

Article 12
Agricultural financial institutions shall comply with
the following provisions with respect to cash
transactions above a certain amount:
1. Verify the identity of the customer and keep
   relevant transaction records.
2. Conduct CDD measures in accordance with the
   following provisions:
A. Check the identity (ID) document or passport
   provided by the customer and record the customer’s
   name, date of birth, address, telephone, account
   number, amount of transaction, and ID number.
   Notwithstanding the foregoing, in case that the
   customer is confirmed to be exactly the
   accountholder, it should be clearly noted in the
   transaction record rather than undertaking a
   repeated ID verification.
B. If the transaction is conducted by an agent, check
   the identity of the agent by checking his or her ID
   document or passport and record the name, date of
   birth, address, and telephone of the agent, account
   number, amount of transaction, and ID number.
C. For occasional transactions, verify the identity of
   the customer in accordance with Subparagraph 3 of
   Article 3 herein.
3. Except for situations specified in Article 13
   herein, report the transaction to the Investigation
   Bureau, Ministry of Justice (referred to as
  “Investigation Bureau” hereunder) in a format
   prescribed by the Investigation Bureau via
   electronic media in five business days after the
   completion of transaction. If an agricultural
   financial institution is unable to file a report
   via electronic media with a legitimate reason, the
   institution may file a written report after
   obtaining the consent of the Investigation Bureau.
4. Keep the data reported to the Investigation Bureau
   and relevant transaction records in accordance with
   Article 11 herein.

Article 13
An agricultural financial institution is not required
to file a report on any of the following cash
transactions above a certain amount with the
Investigation Bureau, provided the financial
institution verifies the identity of the customer and
keeps the transaction records thereof:
1. Deposits into the accounts opened by government
   agencies, state-run enterprises, institutions
   acting with governmental power (within the scope of
   mandate), public and private schools, public
   enterprises and government funds established where
   relevant regulations or contractual relationships
   so provide and their transactions with the
   agricultural financial institution.
2. Receivables and payables collected and made by an
   agricultural financial institution on behalf of
   government treasuries.
3. Transactions and fund arrangements between
   financial institutions. Notwithstanding the
   foregoing, payables to another financial
   institution’s customer paid through an inter-bank
   deposit account, such as a customer cashing the
   check issued by another financial institution,
   shall be handled as required, provided the cash
   transaction of the same customer exceeds a certain
   amount.
4. Funds paid by a lottery merchant for purchasing
   lottery tickets.
5. Payments collected on behalf of a third party
   (excluding payments deposited in designated stock
   subscription accounts and credit card payments
   collected) where the payment notice expressly bears
   the name, ID Card number (including the code which
   enables tracking of counterparty’s identity), and
   type and amount of transaction. Nevertheless, the
   duplicate copy of the payment notice shall be kept
   as the transaction record.
In case of non-individual accounts such as those
opened by department stores, megastores, supermarket
chains, gas stations, hospitals, transportation
businesses and hotels and restaurants which must
deposit cash amounting to over a certain amount
constantly or routinely in line with business needs,
an agricultural financial institution may, after
verifying the actual business needs, submit the name
list to the Investigation Bureau. Verification and
reporting of transactions on a case-by-case basis may
be waived for such an account unless the Investigation
Bureau responds to the contrary within ten days from
the receipt of the name list. An agricultural
financial institution shall examine the counterparties
to the transactions exempted from reporting on a
case-by-case basis at least once every year, and
report to the Investigation Bureau for recordation if
a counterparty no longer has business dealing as
mentioned in this paragraph with it.

Article 14
Agricultural financial institutions shall file
suspicious transaction reports in accordance with
following provisions:
1. For transactions related to the monitoring patterns
   under Subparagraph 5 of Article 9 herein or other
   situations that are deemed as suspicious money
   laundering activities, an agricultural financial
   institution shall file a suspicious transaction
   report (STR) with the Investigation Bureau,
   regardless of the amount of transaction and
   regardless whether the transaction was completed or
   not.
2. Within ten (10) business days upon discovery of a
   transaction suspected of money laundering or
   terrorist financing, an agricultural financial
   institution shall promptly file a STR with the
   Investigation Bureau in a format prescribed by the
   Bureau after the report has been approved by the
   responsible chief compliance officer at the
   institution.
3. For obviously significant suspected money
   laundering transactions of urgent nature, an
   agricultural financial institution should file a
   report as soon as possible to the Investigation
   Bureau by fax or other available means and follow
   it up with a written report. The agricultural
   financial institution is not required to submit a
   follow-up written report, provided the
   Investigation Bureau has acknowledged the receipt
   of report by sending a reply by fax. In such event,
   the agricultural financial institution shall retain
   the faxed reply.
4. The formats of STR and faxed reply mentioned in the
   preceding two subparagraphs shall be prescribed  by
   the Investigation Bureau.
5. The data reported to the Investigation Bureau and
   relevant transaction records shall be kept in
   accordance with Article 11 herein.

Article 15
These Regulations shall enter into force on June 28,
2017.