Anti-money Laundering and Countering the Financing of Terrorism
Management system and responsible units
To prevent money laundering, combat financial crime, ensure financial stability, promote transparency in financial flows, and strengthen international cooperation, Taishin FHC has established the " AML and CFT Policy", "AML/CFT Information Sharing Management Guidelines", and subsidiaries comply with these policies and regulations issued by their respective authorities by formulating internal guidelines to enhance AML/CFT mechanisms raising employees' anti-money laundering awareness. Taishin upholds a core value of sustainable operations, fulfilling its responsibilities as a global citizen.
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Risk assessment and execution of control measures
Not engaging in any business activities associated with a new product, service, or type of business until adequate money laundering and terrorist financing assessments and controls have been implemented.
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Subsidiary customer management policy
Complying with the target customer segment management guidelines established by individual relevant subsidiaries according to their own risk assessments.
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Zero tolerance
Not allowing any violation of local regulations against money laundering or terrorist financing.
With respect to AML/CFT management, the Board of Directors of Taishin FHC is the highest guidance body of the Group. The responsible unit of Taishin FHC is responsible for establishing the Group's overall control procedures, shaping a corporate culture of legal compliance and risk management, and regularly reviewing and examining the effectiveness of the implementation of AML/CFT.
Group subsidiaries are responsible for verifying, assessing and establishing the level of money laundering and terrorism financing risks they are exposed to. They are also required to develop ML/TF risk prevention plans and compliance standard operating procedures, and undertake self-audits and internal audits for the purpose of preventing or mitigating ML/TF risks.
Five Actions
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01
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Internal regulations and SOP added or modified in terms of the changes in local or foreign external AML/CFT regulations.
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02
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Institution Risk Assessment (IRA) and customer risk assessment.
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03
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Setting the transaction monitoring scenarios.
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04
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Convention of senior management meetings, such as group AML/CFT meeting, AML/CFT committee of the subsidiary bank, and relevant management meetings of other subsidiaries.
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05
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Following the three lines of defense risk management framework, effective controls are ensured. Regular meetings, including second and third lines of defense discussions and parent-subsidiary audit sessions, address regulatory compliance and risk management issues.
Three Lines of Defense
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First line of defense
Business administration departments are required to comprehend the AML/CFT program and adopt relevant practices in daily activities.
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Second line of defense
A responsible unit has been assigned and supported with resources to monitor and assess risk constantly.
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Third line of defense
The internal audit unit conducts regular audits according to internal control measures.
AML and CFT Education
The Company continued to include anti-money laundering and counter terrorism financing training for corporate governance courses for the Directors of Taishin FHC in 2024 for the purpose of enhancing the awareness of the management and general employees for anti-money laundering and counter terrorism financing. The Group also provided significant amounts of training for the Group's AML/CFT officers/personnel with 647 total training hours. The training provided by the Group for Taishin FHC and subsidiaries including Taishin Bank, Taishin Life, Taishin Securities, Taishin Securities Investment Trust, Taishin Securities Investment Advisory, Taishin D. A. Leasing, Taishin Futures, and other subsidiaries, included physical, online e-learning, and external education courses. Total training hours amounted to 41,571.44 hours and employees registered 28,936 attendances in such courses. The course covers money laundering prevention trends, abnormal account management, risk trends of money laundering and financing of terrorism, legal compliance, combating financing of terrorism and proliferation financing, system operation, business execution precautions, suspicious transaction patterns, case sharing, notification instructions and common deficiencies instructions, totaling more than 100 classes. The 2024 AML and CFT training completion rate
was 100%.
AML and CFT training in 2024
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Periodic training courses that share cases (common types of deficiencies, case sharing, etc.)
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6,142
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4,838
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Internal online training courses and tests (AML/CFT regulations and promotion, etc.)
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18,690
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28,284.36
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Online training course offered by the internal compliance/dedicated unit (The latest domestic and foreign AML/CFT related regulations and standards, etc.)
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3,385
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2,214
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In-person training courses offered by the internal compliance/dedicated unit (Introduction to the key points of the Money Laundering Control Act, handling of money laundering control cases, etc.)
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145
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157.5
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In-person training courses provided by external professional institutions (International conferences on financial supervision of AML/CFT and proliferation financing, AML prevention trends and major penalties, analysis of laws on AML prevention and case illustrations, etc.)
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279
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2,235.41
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Required continuing education courses each year (AML/CFT on job training, qualifications training, etc.)
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295
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3,842.17
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Total
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28,936
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41,571.44
Note: As the employees of the Group changed many times in the year, the number of participants is used for calculations.
