| Chapter 2 Standards for Identifying Abnormal Accounts (Account Numbers) and Notification Procedures |
Section 1 Deposit Accounts |
| Article 3 |
The criteria for identifying abnormal deposit accounts or transactions suspected of involvement in fraud are as follows:
1. The applicant frequently applies to open a deposit account or to set up designated accounts over a short period of time without reasonable explanation.
2. The transaction functions applied for are obviously inconsistent with the account holder’s age or background.
3. The contact information provided by the account holder cannot be verified by using reasonable measures.
4. The deposit account has been reported by a financial institution or a member of the public as being used by someone suspected of criminal activities.
5. The deposit account has been used with frequent small amount inward/outward remittances suspected of being probing activities.
6. The user makes frequent use of electronic services or facilities of deposit business institutions within a short period of time in a manner that is obviously at variance with the normal transaction activities of the account holder.
7. An inactive deposit account with unexpected unusual transactions.
8. The telephone number provided by the account holder is the same as a telephone number provided by the account holder of another watch-listed deposit account in the same deposit business institution, suspected to be used for criminal activity.
9. The virtual account linked to the deposit account has been listed as a watch-listed virtual account several times within a certain period of time.
10. A deposit account has transactions suspected of involving fraud, as listed in the Model Guidelines for Banks' Anti-Money Laundering and Counter-Terrorism Financing Policies and Procedures.
11. Other deposit accounts or transactions determined by the competent authorities or deposit business institutions that are suspected of being involved in fraud. |
| Article 4 |
Deposit business institutions shall implement enhanced due diligence to verify the identity of the account holder in cases of abnormal deposit accounts suspected of fraud, and may adopt the following ongoing due diligence measures:
1. Obtaining the approval of senior management before establishing or entering a new business relationship.
2. Taking reasonable measures to understand the sources of wealth and the source of funds of the account holder. The aforementioned source of funds refers to the substantial source from which the funds generate.
3. Conducting enhanced ongoing monitoring of the business relationship. |
| Article 5 |
When deposit business institutions implement control and management measures for abnormal deposit accounts suspected of fraud, as described in the second half of Paragraph 1, Article 8 of the Act, they may send peer notifications to other deposit business institutions by telephone, e-mail, or other means acceptable to the recipient to obtain information about such abnormal deposit accounts suspected of fraud.
The recipient of the inquiry shall provide the following information as requested by the inquiring institution:
1. Account holder’s name of the deposit account and account opening date.
2. The age and occupation of the account holder and the purpose of the account opening or transaction.
3. Whether there are any abnormal transactions in the deposit account and whether the account is being monitored.
In addition to the peer reference items in the preceding paragraph, the recipient of the notification may also provide other necessary information requested by the entity sending the inquiry to implement the control measures in the second half of Paragraph 1, Article 8 of the Act.
The recipient of the notification shall provide the information within five business days. However, this shall not be required if there are practical operational difficulties, which have been explained to the inquiring entity within the preceding period and both parties agree to extend the period for providing the requested information.
The key points or procedures for the confirmation of the inquiring entity by the recipient of the notification under this Article shall be formulated by the Bankers Association of the Republic of China and reported to the competent authority for recordation. |