Taiwan Enacts New Anti-Terrorism Finance Law

UNCLAS AIT TAIPEI 000509 SIPDIS SENSITIVE BUT UNCLASSIFIED STATE FOR INS, NEA/IR, EEB/ESC/TFS/LINDA RECHT, NEA/I/JKONDOS, AND S/CT/TDROZDENKO TREASURY FOR TFFC LADAN ARCHIN E.O. 12958: N/A TAGS: EFIN KTFN PTER ETTC PHUM EAID ECON SL TW SUBJECT: Taiwan Enacts New Anti-Terrorism Finance Law ¶1. (SBU) SUMMARY. On April 14, Taiwan's legislature passed a bill that authorizes financial regulators to take enhanced action against terrorist financing, including freezing bank accounts and financial transactions associated with designated terrorists, entities, and countries. In the past, only prosecutors were authorized to take similar actions against terrorist financing activities. END SUMMARY. ¶2. (U) On April 14, the Legislative Yuan (LY) passed the bill to amend the Foreign Exchange Control Act and the Offshore Banking Act. President Ma Ying-jeou promulgated the amended law on April 29. According to the law's provisions, the Financial Supervisory Commission (FSC) is authorized to take necessary actions to combat terrorist financing, including freezing bank accounts and financial transactions with individuals, entities, territories, and countries designated by the United Nations. The legislation also applies to actions required to further international cooperation, including requests for action by the U.S. ¶3. (U) The legislation requires the FSC to obtain Executive Yuan approval before taking action. In addition, the FSC is required to seek the LY's subsequent concurrence within ten days after any actions are taken. The FSC, however, has to abandon the actions if the LY rejects them. COMMENT -------------- ¶4. (SBU) The legislation gives the FSC, in addition to prosecutors, a solid legal basis on which to take action against terrorists and entities designated by the United Nations and the United States. The FSC, the Central Bank of the ROC, and the Ministry of Justice Investigation Bureau have all been cooperative with past requests on terrorist financing issues, but tend to focus primarily on search and investigation. Taiwan's Money Laundering Prevention Law already authorizes prosecutors to seize and freeze assets and financial transactions involved in terrorist activities. The new law increases Taiwan's ability to investigate such activities. YOUNG