Draft General Explanation for the Amendment of Articles 7, 14, and 18 of the Measures for Anti-Money Laundering and Combating the Financing of Terrorism by Entities or Personnel Providing Virtual Asset Services

The Measures for Anti-Money Laundering and Combating the Financing of Terrorism by Entities or Personnel Providing Virtual Asset Services (hereinafter referred to as "these Measures") are subordinate regulations enacted under the authorization of the Anti-Money Laundering Act and the Counter-Terrorist Financing Act. They were promulgated on June 30, 2021 (Year 110 of the Republic of China), and amended to change their name and all 18 articles on November 26, 2024 (Year 113 of the Republic of China). In view of the rapid development of the virtual asset market, the increasing volume of cross-border transactions and new types of services, and the continuous elevation of international regulatory requirements for anti-money laundering and counter-terrorist financing for Virtual Asset Service Providers (VASPs), this draft amendment is prepared to enhance the transparency and traceability of virtual asset transfer information and to align with international anti-money laundering standards. Reference is made to the Financial Action Task Force (FATF) Revised Recommendation 16 and its accompanying text, as amended on June 18, 2025 (Year 114 of the Republic of China). The key points of the amendment are as follows:

1. In reference to the FATF Revised Recommendation 16 and its accompanying text, Article 7 is amended to require VASPs acting as transferors to obtain necessary information regarding the sender and receiver of the virtual asset transfer. An obligation for VASPs acting as receivers to verify this information is added. Additionally, considering the practical operational needs of VASPs, the scope of application and the timeline for these provisions are to be determined by the Virtual Currency Business Association of the Republic of China and reported to the Financial Supervisory Commission for approval. (Amended Article 7)

2. The implementation date for the amended articles of this draft is added. (Amended Article 18)

Comparison Table of Draft Amended Articles and Current Articles for the Amendment of Articles 7, 14, and 18 of the Measures for Anti-Money Laundering and Combating the Financing of Terrorism by Entities or Personnel Providing Virtual Asset Services

Amended Articles	Current Articles	Explanation
Article 7; ; Virtual Asset Service Providers; ; When acting as the transferor in a virtual asset transfer, they shall handle the following matters:; ; 1. They shall obtain necessary and accurate information on the virtual asset sender and necessary information on the virtual asset receiver.; ; 2. They shall immediately and securely provide the necessary information on the virtual asset sender and receiver to the receiver of the virtual asset transfer.; ; 3. The necessary information on the sender and receiver in the preceding two paragraphs shall include the name of the sender and receiver, and the wallet information for the transfer and receipt of virtual assets; when the value of the virtual asset transfer exceeds NT$30,000, it shall also include the following information:; ; (1) If the sender is a natural person: date of birth and address of domicile.; ; (2) If the sender is a legal person: official identification number and address of the place of registration.; ; (3) If the receiver is a natural person: country and city name of their domicile.; ; (4) If the receiver is a legal person: official identification number and country and city name of the place of registration.; ; 4. Virtual Asset Service Providers that fail to handle the matters in the preceding three paragraphs shall not execute the transfer of virtual assets.; ; When acting as the receiver, Virtual Asset Service Providers shall handle the following matters:; ; 1. They shall take appropriate measures to identify virtual asset transfers lacking the necessary information in paragraph 3 of the preceding article.; ; 2. When the value of the virtual asset transfer exceeds NT$30,000, they shall verify the name or title of the receiver and the wallet information for the receipt of virtual assets, as provided by the transferor, against the information they hold.; ; 3. For abnormal situations discovered in executing the measures in the preceding two paragraphs, they shall have risk-based policies and procedures to determine when to execute, refuse, or suspend the relevant virtual asset transfer, and to take appropriate follow-up actions.; ; 5. When executing a virtual asset transfer, Virtual Asset Service Providers shall confirm that the regulatory framework applicable to the counterparty (receiver or transferor) is consistent with the anti-money laundering and counter-terrorist financing standards set by the Financial Action Task Force (FATF).; ; 6. The scope of application and timeline for the provisions in the preceding five paragraphs shall be determined 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; if amended, the same procedure applies.; ; 7. Virtual Asset Service Providers shall save the information on the sender and receiver obtained in accordance with the provisions of paragraphs 1 and 2 of Article 10; when requested by competent
authorities to provide the aforementioned information, they shall ensure that it can be provided promptly.	Article 7; ; Virtual Asset Service Providers; ; When acting as the transferor in a virtual asset transfer, they shall handle the following matters:; ; 1. They shall obtain necessary and accurate information on the client transferring the virtual asset (hereinafter referred to as "sender") and necessary information on the client receiving the virtual asset (hereinafter referred to as "receiver"), and save the aforementioned information in accordance with the provisions of Article 10, and shall immediately and securely provide the aforementioned information to the entity acting as the receiver. When judicial police organs or procuratorial organs request immediate provision, they shall cooperate.; ; 2. The necessary information on the sender and receiver in the preceding paragraph shall include:; ; (1) Sender information shall include: sender's name, wallet information for the transfer of virtual assets, and one of the following information on the sender:; ; 1. Official ID document number.; ; 2. Address.; ; 3. Date of birth and place of birth.; ; (2) Receiver information shall include: receiver's name, wallet information for the receipt of virtual assets.; ; 3. Virtual Asset Service Providers that fail to handle the matters in the preceding two paragraphs shall not execute the transfer of virtual assets.; ; When acting as the receiver in a virtual asset transfer, Virtual Asset Service Providers shall handle the following matters:; ; 1. They shall take appropriate measures to identify virtual asset transfers lacking the necessary information in paragraph 2 of the preceding article.; ; 2. They shall have risk-based policies and procedures to determine when to execute, refuse, or suspend virtual asset transfers lacking the necessary information in paragraph 2 of the preceding article, and to take appropriate follow-up actions.; ; 3. They shall save the information on the sender and receiver obtained in accordance with the provisions of Article 10.; ; 4. When executing a virtual asset transfer, Virtual Asset Service Providers shall confirm that the regulatory framework applicable to the counterparty (receiver or transferor) is consistent with the anti-money laundering and counter-terrorist financing standards set by the Financial Action Task Force (FATF).; ; 5. The scope of application and timeline for the provisions in the preceding three paragraphs shall be determined by the Virtual Currency Business Association of the Republic of China and reported to the Financial Supervisory Commission for approval.; ; 6. Virtual Asset Service Providers shall save the information on the sender and receiver obtained in accordance with the provisions of paragraphs 1 and 2 of Article 10; when requested by competent authorities to provide the aforementioned information, they shall ensure that it can be provided promptly.	1. To comply with the Financial
Action Task Force (FATF) Revised Recommendation 16 and its accompanying text, to enhance the transparency and traceability of virtual asset transfer information, and to align with international anti-money laundering and counter-terrorist financing norms, this article is amended.; ; 2. The current provisions in Paragraph 1, Item 1 regarding the obtaining, saving, and providing of information are adjusted according to the article structure. The provision regarding the obligation to save information is moved to Paragraph 5, and the obligation to provide information is moved to Paragraph 1, Item 2, to clearly distinguish the obligations of obtaining, providing, and saving information.; ; 3. The current Paragraph 1, Item 2 is moved to Paragraph 1, Item 3, and the items of necessary information to be obtained from the sender and receiver are adjusted in reference to Paragraphs 8 and 9 of the accompanying text of the FATF Revised Recommendation 16. When the value of the virtual asset transfer does not exceed NT$30,000, the name or title of the sender and receiver, and the wallet information for the transfer and receipt of virtual assets (such as account numbers) shall be obtained; when the value of the virtual asset transfer exceeds NT$30,000, in addition to the aforementioned information, additional information on the sender and receiver shall be obtained, including date of birth and official identification number (such as the unified business number for domestic legal persons), etc., to enhance transaction traceability and anti-money laundering regulatory measures. The current Paragraph 1, Item 3 is moved to Paragraph 1, Item 4 with textual adjustments.; ; 4. In accordance with Paragraph 30 of the accompanying text of the FATF Revised Recommendation 16, an obligation for the receiver to verify information for transactions above a certain amount is added. Paragraph 1, Item 2 of the new Paragraph 2 is added to clarify that when the value of the virtual asset transfer exceeds NT$30,000, the receiver shall verify the name or title of the receiver and the wallet information for the receipt of virtual assets, as provided by the transferor, against the information they hold, to strengthen information accuracy and risk control mechanisms. The current Paragraph 2, Item 2 is moved to Paragraph 2, Item 3 with textual adjustments.; ; 5. Considering that the information transmission mechanism and technical standards for virtual asset transfers involve matters such as information system interfacing between domestic and foreign operators, standardization of message formats, and practical industry operations, relevant operations require a certain period for construction and adjustment. Therefore, Paragraph 4 is added to clarify that the scope of application and timeline for Paragraphs 1 to 3 shall be determined by the Virtual Currency Business Association of the Republic of China and reported to the Financial Supervisory Commission for approval, to retain flexibility
in practical operations.	; ; Article 14; ; Virtual Asset Service Providers shall take appropriate actions to identify, assess, and understand their money laundering and terrorist financing risks, covering at least the aspects of clients, countries or regions, products and services, transactions or payment channels, and shall handle the following matters:; ; 1. They shall produce a risk assessment report annually and submit it to this Commission for record by the end of March of the following year.; ; 2. They shall consider all risk factors to determine the overall risk level and appropriate measures to reduce risks.; ; 3. They shall ensure the regular update of the risk assessment report.	Article 14; ; Virtual Asset Service Providers shall take appropriate actions to identify, assess, and understand their money laundering and terrorist financing risks, covering at least the aspects of clients, countries or regions, products and services, transactions or payment channels, and shall handle the following matters:; ; 1. They shall produce a risk assessment report annually and submit it to the Financial Supervisory Commission (hereinafter referred to as "this Commission") for record by the end of March of the following year.; ; 2. They shall consider all risk factors to determine the overall risk level and appropriate measures to reduce risks.; ; 3. They shall ensure the regular update of the risk assessment report.	Textual adjustments are made in coordination with the amendment of Article 7.	; ; Article 18; ; Except for Article 7, which shall have its implementation date separately determined by this Commission, these Measures shall be implemented on November 30, 2024 (Year 113 of the Republic of China).; ; The amended articles of these Measures shall be implemented from the date of promulgation.	Article 18; ; Except for Article 7, which shall have its implementation date separately determined by this Commission, these Measures shall be implemented on November 30, 2024 (Year 113 of the Republic of China).	Paragraph 2 is added to clarify the implementation date for the amended articles of this draft.