General Explanation of the Amendments to Articles 7, 14 and 18 of the Regulations Governing Anti-Money Laundering and Countering the Financing of Terrorism for Businesses or Persons Providing Virtual Asset Services

The Regulations Governing Anti-Money Laundering and Countering the Financing of Terrorism for Businesses or Persons Providing Virtual Asset Services (hereinafter referred to as "these Regulations") are subordinate legislation authorized and enacted under the Money Laundering Control Act and the Counter-Terrorism Financing Act. They were enacted and promulgated on June 30, 2011, and were amended and promulgated on November 26, 2024, with the name and all 18 articles amended. In view of the rapid development of the virtual asset market, the increasing cross-border transactions and new types of services, and the continuous raising of international anti-money laundering and counter-terrorism financing supervisory requirements for virtual asset service providers (VASPs), and in order to strengthen the transparency and traceability of virtual asset transfer information and to align with international anti-money laundering standards, these Regulations are proposed to be amended by reference to the Financial Action Task Force (FATF) revised Recommendation 16 of June 18, 2025 and its interpretive notes. The key points of the amendments are as follows:

By reference to the FATF revised Recommendation 16 and its interpretive notes, the provisions are amended so that a VASP acting as the transferor shall obtain the necessary information on the transferor and transferee of the virtual asset transfer, and a new obligation is added for a VASP acting as the transferee to verify the information; in addition, taking into account the practical operational needs of VASPs, it is added that the scope of application and the timetable shall be prescribed by the Virtual Currency Business Association of the Republic of China and reported to the Financial Supervisory Commission for approval. (Amended Article 7)
The effective date of the amended provisions is added. (Amended Article 18)

Comparison Table of the Amendments to Articles 7, 14 and 18 of the Regulations Governing Anti-Money Laundering and Countering the Financing of Terrorism for Businesses or Persons Providing Virtual Asset Services

Amended Article	Current Article	Explanation
Article 7 Where a virtual asset service provider acts as the transferor of a virtual asset transfer, it shall handle matters in accordance with the following provisions: 1. It shall obtain the necessary and correct information of the virtual asset transferor and the necessary information of the virtual asset transferee. 2. It shall immediately and securely provide the necessary information of the virtual asset transferor and transferee to the transferee of the virtual asset transfer. 3. The necessary information of the transferor and transferee referred to in the preceding two subparagraphs shall include the name or title of the transferor and transferee and the wallet information for transferring and receiving the virtual asset; where the value of the virtual asset transferred exceeds NT$30,000, it shall also include the following information: (1) Where the transferor is a natural person: date of birth and the address of its domicile. (2) Where the transferor is a legal person: official identification number and the address of its place of establishment and registration. (3) Where the transferee is a natural person: the country and city name of its domicile. (4) Where the transferee is a legal person: official identification number, and the country and city name of its place of establishment and registration. 4. Where a virtual asset service provider is unable to handle matters in accordance with the preceding three subparagraphs, it shall not execute the virtual asset transfer. Where a virtual asset service provider acts as the transferee, it shall handle matters in accordance with the following provisions: 1. It shall take appropriate measures to identify virtual asset transfers that lack the necessary information referred to in subparagraph 3 of the preceding paragraph. 2. Where the value of the virtual asset transferred exceeds NT$30,000, it shall verify the information it holds against the name or title of the transferee and the wallet information for receiving the virtual asset provided by the transferor. 3. With respect to abnormal circumstances discovered in executing the measures in the preceding two subparagraphs, it shall have risk-based policies and procedures to determine when to execute, refuse or suspend the relevant virtual asset transfer, and appropriate follow-up action. Where a virtual asset service provider executes a virtual asset transfer, it shall confirm that the supervisory regulations applicable to the counterparty (the transferee or transferor) are consistent with the anti-money laundering and counter-terrorism financing standards set by the Financial Action Task Force (FATF). The scope of application and timetable of the preceding three paragraphs shall be prescribed by the Virtual Currency Business Association of the Republic of China and reported to the Financial Supervisory Commission (hereinafter referred to as this Commission) for approval; the same applies when they are amended. A virtual asset service
provider shall, in accordance with Article 10, retain the transferor and transferee information obtained in accordance with paragraphs 1 and 2; when a competent authority requests the provision of the above information, it shall ensure that it can be provided promptly.	Article 7 Where a virtual asset service provider acts as the transferor of a virtual asset transfer, it shall handle matters in accordance with the following provisions: 1. It shall obtain the necessary and correct information of the customer transferring out the virtual asset (hereinafter referred to as the transferor) and the necessary information of the customer receiving the virtual asset (hereinafter referred to as the transferee), and shall retain the above information obtained in accordance with Article 10, and shall immediately and securely provide the above information to the business acting as the transferee. When a prosecuting authority or judicial police authority requests immediate provision, it shall cooperate. 2. The necessary information of the transferor and transferee referred to in the preceding subparagraph shall include: (1) The transferor information shall include: the transferor's name, the wallet information for transferring out the virtual asset, and one of the following items of transferor information: 1. Official identity document number. 2. Address. 3. Date of birth and place of birth. (2) The transferee information shall include: the transferee's name, and the wallet information for receiving the virtual asset. 3. Where a virtual asset service provider is unable to handle matters in accordance with the preceding two subparagraphs, it shall not execute the virtual asset transfer. Where a virtual asset service provider acts as the transferee of a virtual asset transfer, it shall handle matters in accordance with the following provisions: 1. It shall take appropriate measures to identify virtual asset transfers that lack the necessary information referred to in subparagraph 2 of the preceding paragraph. 2. It shall have risk-based policies and procedures to determine when to execute, refuse or suspend virtual asset transfers that lack the necessary information referred to in subparagraph 2 of the preceding paragraph, and appropriate follow-up action. 3. It shall, in accordance with Article 10, retain the transferor and transferee information obtained. Where a virtual asset service provider executes a virtual asset transfer, it shall confirm that the supervisory regulations applicable to the counterparty (the transferee or transferor) are consistent with the anti-money laundering and counter-terrorism financing standards set by the Financial Action Task Force (FATF).	1. In order to cooperate with the Financial Action Task Force (FATF) revised Recommendation 16 and its interpretive notes, strengthen the transparency and traceability of virtual asset transfer information, and align with international anti-money laundering and counter-terrorism financing
norms, this Article is amended. 2. The provisions of the current paragraph 1, subparagraph 1 concerning the acquisition, retention and provision of information are adjusted in line with the structure of the provisions; the provisions concerning the obligation to retain information are moved to paragraph 5, and the obligation to provide information is moved to paragraph 1, subparagraph 2, so as to clearly distinguish the obligations of information acquisition, provision and retention. 3. The current paragraph 1, subparagraph 2 is moved to paragraph 1, subparagraph 3, and by reference to paragraphs 8 and 9 of the interpretive notes to the FATF revised Recommendation 16, the items of necessary information of the transferor and transferee to be obtained are adjusted. Where the value of the virtual asset transferred does not exceed NT$30,000, the name or title of the transferor and transferee and the wallet information for transferring and receiving the virtual asset (such as account number coding, etc.) shall be obtained; where the value of the virtual asset transferred exceeds NT$30,000, in addition to the above information, additional information of the transferor and transferee shall also be obtained, including date of birth and official identification number (such as the uniform number of a domestic legal person, etc.), so as to strengthen transaction traceability and anti-money laundering supervisory measures. The current paragraph 1, subparagraph 3 is moved to paragraph 1, subparagraph 4, with textual amendments made as appropriate. 4. In order to cooperate with paragraph 30 of the interpretive notes to the FATF revised Recommendation 16, which adds a transferee obligation to verify information for transactions above a certain amount, a new paragraph 2, subparagraph 2 is added, expressly providing that where the value of the virtual asset transferred exceeds NT$30,000, the transferee shall verify the information it holds against the name or title of the transferee and the wallet information provided by the transferor, so as to strengthen information accuracy and risk control mechanisms. The current paragraph 2, subparagraph 2 is moved to paragraph 2, subparagraph 3, with amendments made as appropriate. 5. In consideration of the fact that the virtual asset transfer information transmission mechanism and technical standards involve information system interconnection between domestic and foreign businesses, message format standardization and industry operational practices, and that the relevant operations require a certain period for establishment and adjustment, a new paragraph 4 is added, expressly providing that the scope of application and timetable of paragraphs 1 to 3 shall be prescribed by the Virtual Currency Business Association of the Republic of China and reported to the Financial Supervisory Commission for approval, so as to preserve flexibility for practical operations.
Article 14 A virtual asset service provider shall take appropriate measures to identify, assess and understand its money laundering and terrorism financing risks, covering at least the dimensions of customers, countries or territories, products and services, and transactions or payment channels, and shall handle matters in accordance with the following provisions: 1. It shall produce a risk assessment report each year and submit it to this Commission by the end of March of the following year for recordation. 2. It shall consider all risk factors to determine the overall risk level and appropriate measures to reduce risk. 3. It shall ensure that the risk assessment report is regularly updated.	Article 14 A virtual asset service provider shall take appropriate measures to identify, assess and understand its money laundering and terrorism financing risks, covering at least the dimensions of customers, countries or territories, products and services, and transactions or payment channels, and shall handle matters in accordance with the following provisions: 1. It shall produce a risk assessment report each year and submit it to the Financial Supervisory Commission (hereinafter referred to as this Commission) by the end of March of the following year for recordation. 2. It shall consider all risk factors to determine the overall risk level and appropriate measures to reduce risk. 3. It shall ensure that the risk assessment report is regularly updated.	In cooperation with the amendment to Article 7, textual amendments are made as appropriate.
Article 18 These Regulations, except for Article 7, the effective date of which shall be separately prescribed by this Commission, shall take effect on November 30, 2024. The amended provisions of these Regulations shall take effect on the date of promulgation.	Article 18 These Regulations, except for Article 7, the effective date of which shall be separately prescribed by this Commission, shall take effect on November 30, 2024.	A new paragraph 2 is added to expressly provide the effective date of the amended provisions.