| Legislative： |
1. Promulgated per Order of the Council of Agriculture No.
Nong-Jin-Zi-1045070340A dated April 30, 2015.
2. Amendment and name change promulgated per Order of the
Council of Agriculture No. Nong-Jin-Zi-1065074299A dated July
26, 2017.
3. The “Directions Governing Internal Controls of the Credit
Departments of Farmers’ and Fishermen’s Associations for
Anti-Money Laundering and Countering Terrorism Financing”
is rescinded effective December 29, 2018 per Order of the
Council of Agriculture No. Nong-Jin-Zi-1075074665A dated
December 27, 2018. |
| 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 establish 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. |