1.    FSC Issues Regulations Governing Anti-Money Laundering Registration of Enterprises or Persons Providing Virtual Asset Services
To strengthen Taiwan’s anti-money laundering regulation and supervision of enterprises or persons providing virtual asset services, the Financial Supervisory Commission (FSC), on 26 November 2024, issued the Regulations Governing Anti-Money Laundering Registration of Enterprises or Persons Providing Virtual Asset Services. The Regulations standardize VASP business categories and business registration systems, registration conditions and procedures, management, and transitional provisions, and are in force from 30 November 2024. Enterprises or persons wishing to provide virtual asset services are required to apply for anti-money laundering registration in accordance with relevant provisions. Anyone who provides virtual asset services without completing registration will face a criminal penalty of fixed-term imprisonment for up to two years.
2.    FSC Issues Order Amending Article 4-1 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises, Article 19-1 of the Regulations Governing Securities Investment Trust Enterprises, Article 19-2 of the Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises, and Order Relating to Article 77, Paragraph 2 of the Securities Investment Trust and Consulting Act and Article 14, Paragraphs 3 and 5 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises
To strengthen the audit function of securities investment trust enterprises (SITEs) so as to effectively implement self-regulatory mechanisms, the amendments expressly provide that in addition to certain qualifications, a SITE’s chief internal audit officer is required to hold a position equivalent to deputy general manager or an equivalent position. A time limit is set for making any adjustments necessary for compliance: SITEs that do not meet the requirements must make the necessary adjustments within one year from the date the amendments take force. Also, to strengthen mechanisms for prevention of trades involving conflicts of interest by personnel of SITEs and of Securities Investment Consulting Enterprises (SICEs) that conduct discretionary investment business, the amendments require SITEs, as well as SICEs conducting discretionary investment business, to establish rules governing the use of information and communications equipment and to specify conflicts of interest prevention measures in their internal control systems and scrupulously implement the measures.
Under Article 77, paragraph 2 of the Securities Investment Trust and Consulting Act and Article 14, paragraphs 3 and 5 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises, the requirement is added that responsible persons, department heads, branch managers, fund managers, and investment managers of SITEs, as well as their related parties, must report the specifics of any transactions they engage in that involve stock or equity derivatives to their respective SITEs prior to executing the transactions.