The Financial Supervisory Commission (FSC) of Taiwan announced its inspection priorities for 2024, focusing primarily on combating fraud, enhancing anti-money laundering measures, and, notably, including Virtual Asset Service Providers (VASPs) for the first time in financial inspections.
The FSC released nearly a hundred inspection items on Tuesday (19th), emphasizing efforts against fraudulent activities and bolstering measures against money laundering. Of particular significance, VASPs will be subject to inspections next year, marking a significant regulatory step.
There are currently 25 virtual currency businesses under FSC supervision. Earlier, in late September, the FSC officially issued guidelines for managing VASPs, requiring self-regulation by operators and strengthened customer protection measures.
According to FSC statistics, Taiwan currently hosts 1.8 million virtual asset trading accounts. Of the 27 trading platform operators originally signed up for anti-money laundering compliance, 25 have merged, with 19 others still under review or submission phases.
The FSC emphasized that while non-compliant entities won’t face financial inspections immediately, they remain subject to regulatory obligations. Future amendments to anti-money laundering laws are expected to impose stricter requirements on virtual currency asset trading platforms.
Additionally, in traditional finance, the FSC’s 2024 inspection priorities cover fraud prevention measures at banks, credit unions, securities firms, and investment trusts. This includes enhancing scrutiny for new account openings, managing high-risk services like online banking and ATMs, and boosting staff education and awareness.
Moreover, the FSC highlighted concerns about corporate governance, consumer rights protection, domestic and overseas real estate credit risk management, and information and communication security. Particularly in consumer rights protection, the focus will be on personal data protection, safeguarding rights for individuals with disabilities and elderly clients, and controlling sales operations by financial planners.
Overall, the FSC’s 2024 financial inspections prioritize cybersecurity, consumer protection, and fraud prevention across various sectors of the financial industry. Risk management for real estate loans will extend beyond domestic concerns to encompass overseas real estate credit risks as well.
