Taiwan’s Financial Supervisory Commission (FSC) announced its focus areas for financial inspections in 2024, emphasizing combatting fraud, strengthening anti-money laundering measures, and for the first time, including Virtual Asset Service Providers (VASPs) in their regulatory scrutiny.
The FSC released its inspection priorities on Tuesday, covering nearly a hundred areas. Particularly highlighted are efforts to combat fraud and enhance anti-money laundering measures. Notably, Virtual Asset Platforms and Transaction Businesses (VASPs) will be subject to regulatory oversight starting next year.
Twenty-five virtual currency businesses are slated for heightened FSC supervision in 2024. The FSC previously issued the “Guidelines for Managing Virtual Asset Platforms and Transaction Businesses” at the end of September, stressing self-regulation among operators and bolstering customer protection measures.
According to FSC statistics, Taiwan currently has 1.8 million virtual asset trading accounts. Among the 27 trading platform operators originally committed to anti-money laundering compliance, 25 have undergone consolidation, while 19 are still in review or submission stages.
The FSC also underscored that although non-compliant entities will not currently undergo financial inspections, they are still obliged to adhere to regulations. Future legislative amendments are expected to impose stricter requirements on virtual asset trading platforms in terms of anti-money laundering compliance.
Enhancing traditional financial fraud prevention and anti-money laundering measures is also a key focus for the FSC in 2024. This includes implementing stringent new account opening procedures, managing high-risk operations like internet banking and ATMs, and enhancing employee education and awareness.
Additionally, the FSC highlighted concerns regarding corporate governance, safeguarding financial consumer rights, managing domestic and overseas real estate lending risks, and ensuring information and communication security.
Overall, the FSC’s 2024 financial inspections will prioritize cybersecurity, consumer protection, and fraud prevention across various sectors of the financial industry. Overseas real estate lending risks will also be included in the inspection scope, not limited to domestic concerns.
