Following the ACE exchange’s previous fine of 1.52 million yuan by the Securities and Futures Bureau of the Financial Supervisory Commission for failing to implement anti-money laundering regulations, another member of the Taiwan Virtual Currency Association was fined by the Securities and Futures Bureau for violating the Money Laundering Prevention Law.
According to a press release issued by the Securities and Futures Bureau of the Financial Supervisory Commission, Rybit Co., Ltd. (Rybit) violated the relevant laws and regulations of the Money Laundering Prevention Act and the Personal Data Protection Act due to the following deficiencies:
(1) Regarding customer review measures, there are situations such as failure to properly conduct risk assessments for corporate customers, failure to specify the frequency and operating procedures of regular reviews for customers with whom business relationships have been established, failure to confirm the identity of customers in accordance with regulations, etc.
(2) The continuous monitoring of transactions has not included the source of virtual currency provided by the virtual currency supplier into the scope of transaction monitoring. Some transaction monitoring situations involve the accuracy of the basic information filled in by the customer. However, the accuracy of such basic information The accuracy has not been verified.
(3) Regarding record keeping, customer transaction records are not completely retained and are insufficient to reconstruct individual customer transactions.
(4) Customer personal information is retained in an external company system without appropriate security measures.
In response to the violations, the Financial Supervisory Commission announced that it will impose new sanctions on the company in accordance with Article 5, paragraph 2, Article 7, paragraph 5, and Article 8, paragraph 4, of the Money Laundering Prevention Act and Article 48, paragraph 2, of the Personal Data Protection Act. A fine of NT$1.02 million was imposed.
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