Cabinet passes draft to strengthen crypto money laundering controls

Taipei, Aug. 13 (CNA) The Executive Yuan on Thursday passed draft amendments to the Money Laundering Control Act aimed at strengthening oversight of cryptocurrency-related activities and stablecoins and preventing them from being used for money laundering.

Under the amendments, providing virtual asset services or third-party payment services without registration, as well as issuing stablecoins without authorization, would be designated as "specified unlawful activities" for the purposes of money laundering offenses.

The draft also incorporates international standards by establishing a legal definition of a beneficial owner as a person who ultimately owns or controls a client or a transaction, or a natural person who exercises ultimate effective control over a legal entity or legal arrangement.

It would also authorize the central competent authorities overseeing relevant industries to establish inspection and identification measures for beneficial owners in consultation with other government agencies.

To strengthen cross-agency cooperation on money laundering prevention, the draft would allow relevant government agencies to access necessary information on financial institutions and designated nonfinancial businesses and professions within specified limits.

It would also establish a mechanism allowing financial institutions and virtual asset service providers (VASPs) to share information with peers and entities in other industries when necessary to prevent money laundering or combat the financing of terrorism.

The draft amendments will be sent to the Legislature for review before they can take effect as law.

At a post-Cabinet meeting press conference, Cabinet spokesperson Michelle Lee (李慧芝) quoted Premier Cho Jung-tai (卓榮泰) as saying that preventing money laundering is a critical foundation for combating crime and maintaining financial stability.

As criminal methods and means of transferring funds continue to evolve rapidly, legislation must also be updated in line with international standards and practical needs, Cho said. He added that supporting measures and implementation rules should also be completed, while cross-agency cooperation and information sharing should be strengthened.