| Chapter 2 Standards for Identifying Abnormal Accounts (Account Numbers) and Notification Procedures |
Section 2 Electronic Payment Accounts |
| Article 6 |
The criteria for identifying abnormal electronic payment accounts or transactions suspected of involvement in fraud are as follows:
1. The applicant frequently applies to open an e-payment account over a short period of time without reasonable explanation.
2. The transaction functions applied for are obviously inconsistent with the user's age or background.
3. The contact information provided by the user cannot be verified by using reasonable measures.
4. The e-payment account has been reported by a financial institution or a member of the general public as being used by someone suspected of criminal activity
5. The e-payment 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 electronic payment institutions within a short period of time in a manner that is obviously at variance with the normal transaction activities of the user.
7. An inactive account with unexpected unusual transactions.
8. The telephone number provided by the user is the same as a telephone number provided by the user of another watch-listed electronic payment account, suspected of criminal activity.
9. Accounts with transactions that show signs of involvement in fraud, as set out in the Template for Directions Governing Anti-Money Laundering and Counter-Financing of Terrorism of Electronic Payment Institutions.
10. Other e-payment accounts or transactions determined by the competent authority or electronic payment institutions that are suspected of being involved in fraud. |
| Article 7 |
Electronic payment institutions shall implement enhanced due diligence to verify the identity of users in cases of abnormal electronic payment 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 source of funds of the user. 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 8 |
When electronic payment institutions implement control measures for abnormal electronic payment 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 electronic payment institutions by telephone, e-mail, or other means acceptable to the recipient to obtain information about such abnormal electronic payment accounts suspected of fraud.
The recipient of the inquiry shall provide the following information as requested by the inquiring institution:
1. Account name of the electronic payment account and account opening date.
2. The user's age.
3. Whether there are any abnormal transactions in the electronic payment 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. |