Taiwan's Financial Supervisory Commission is cracking down again! Maicoin and BitOasis are fined 1.5 million New Taiwan Dollars each for anti-Money Laundering deficiencies

In October, the Financial Supervisory Commission of Taiwan announced that four VASP (Virtual Assets Service Provider) operators inspected last year were found to have deficiencies in anti-money laundering measures. In addition to ACE, the flagship exchange, and Rybit, which have announced fines, the Financial Supervisory Commission announced today that Maicoin Group (Modern Wealth Technology Co., Ltd.) and Bito Group have been fined NT$1.5 million.

Previously, ACE, the ace exchange, was fined 1.52 million TWD for inadequate measures to prevent Money Laundering, becoming the operator with the highest fine. Rybit was fined 1.02 million TWD for violating the regulations on Money Laundering prevention and personal data protection. Maicoin, BitoEX, and the ACE involved in the fraud case, the fine was only 20,000 TWD apart.

Maicoin Money Laundering防制缺失遭罰 150 萬新台幣

In December 2023, the Financial Supervisory Commission of Taiwan conducted an anti-Money Laundering and counter-terrorism financing inspection on Maicoin, and found multiple violations, resulting in a fine of NTD 1.5 million imposed on the company on November 25, 2024.

Maicoin violation facts

1. Failure to implement customer due diligence: Modern Wealth has not implemented customer due diligence and enhanced measures as required, indicating inadequate risk management. 2. Inadequate transaction monitoring: Suspicious transaction patterns are not effectively monitored, and the threshold for transaction setting lacks specificity. 3. Incomplete transaction records: Incomplete records of customer transactions are not properly maintained. 4. Inadequate response to abnormal transactions: Faced with abnormal customer transactions, insufficient investigation is conducted or suspicious transaction reports are not promptly filed with the Department of Justice Investigation Bureau.

Based on Articles 5, 7, 8, and 10 of the Money Laundering Prevention Act, the FSC has fined Modern Wealth 1.5 million New Taiwan Dollars for the aforementioned deficiencies, warning companies to strengthen their Money Laundering prevention management.

Bitfinex's lack of Money Laundering prevention also resulted in a fine of 1.5 million New Taiwan dollars

Also in the project inspection in December 2023, Bito Technology Co., Ltd. was found to have multiple deficiencies in preventing Money Laundering, and was fined 1.5 million New Taiwan dollars on November 25, 2024.

Fact of BitStorage violation

1. Inadequate customer due diligence: The company did not conduct a thorough review of the source of wealth for high-risk customers, and there were also shortcomings in identifying the ultimate beneficial owners of corporate clients. 2. Inadequate transaction monitoring: The continuous review of whether transactions match customer risk profiles did not meet the standards. 3. Data retention gaps: Failure to fully record customer transaction-related information. 4. Improper handling of suspicious transactions: Failure to promptly trigger alerts or conduct further investigations for transactions that meet internal suspicious transaction patterns.

Under the same legal provisions, the FSC imposed a fine of 1.5 million NTD on the currency trust company, emphasizing the importance of regulatory compliance.

Regulations must not be ignored, and the Financial Supervisory Commission urges the industry to strengthen internal controls.

The FSC emphasizes that enterprises should continuously strengthen internal control measures when facing relevant regulations on anti-money laundering and combating the financing of terrorism. The punishment of Modern Wealth and Cointrust Company this time highlights the regulatory authority’s steadfast position on financial market stability and international cooperation.

According to ChainNews, the relevant industry believes that these VASP exchanges have been operating for a long time. Before international and Taiwanese regulations were clearly explained in the past, omissions were inevitable. Therefore, it is difficult to meet the standards when reviewing past records under today's standards.

This article Taiwan Gold Control Commission will open the guillotine again! Maicoin, Money Laundering lack of control, each fined NT$1.5 million First appeared in chain news ABMedia.