TAIPEI, Taiwan -- The Anti-Money Laundering Office (洗錢防制辦公室) was officially opened Thursday, with the Justice Ministry announcing that regulations to monitor specific government officials, lawmakers and individuals with close ties could be rolled out to crack down on crime.
A newly revised Money Laundering Control Act was passed by the Legislature this January and will come into effect on June 28. The office will form part of the Tsai administration's latest efforts to roll out measures in order to force adherence to the law
Government officials have noted the need to open such an office due to Taiwan's poor performance in the Asia/Pacific Group on Money Laundering review.
Taiwan fell short in the group's second evaluation round — which began in 2005 and ended in 2012 — due to its anti-money laundering laws not aligning with international standards and because of the country's failure to criminalize terrorist financing.
Mega Financial Holding's inability to abide by anti-money laundering regulations and subsequent hefty fine is viewed with worry by government officials, who believe the scandal could put a dent on Taiwan's evaluation, reports say.
Office Director and Deputy Justice Minister Tsai Pi-chung (蔡碧仲) told local media that an "anti-laundering restriction list" could be set up to include sitting and former government heads, lawmakers and close confidants as well as family members or friends living at the same address.
Tsai said the office will serve as a task force with a three-year mandate. Nineteen officials will be enlisted under the office, which is located at the ex-headquarters of the now-scrapped Special Investigation Division.
Concerns were raised regarding whether monitoring not only government officials but also people close to them could be construed as a violation of human rights.
Deputy Justice Minister Chen Ming-tang (陳明堂), addressing these concerns at a post-Cabinet press conference, said other countries had similar methods in place and that the government would announce specific regulations before June 28, when the newly revised Money Laundering Control Act will take effect.
"Not all politicians will be regulated. Whether close confidants or family members will be included is still up for discussion ... the principle of proportionality will be considered."
Go Cash-free?
In hopes of stemming money laundering, plans to roll out cash-free policies are being discussed, Chen said, saying that the ratio of purchases by cash in Taiwan were still relatively high at 70 percent — 30 to 40 percent more than in other developed countries.
Initial plans include restricting big-sum purchases, such as properties, diamonds or designer handbags, Chen said, but stressed that no specific details had been decided since such measures would affect consumers' purchasing habits.
Research as to whether such measures would hinder economic growth are still required, he said.
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