| Chapter 2 Standards for Identifying Abnormal Accounts (Account Numbers) and Notification Procedures |
Section 3 Credit Cards |
| Article 9 |
The criteria for identifying abnormal credit cards or transactions suspected of involvement in-fraud are as follows:
1. The applicant frequently applies for credit cards over a short period of time without reasonable explanation.
2. The credit card has been reported by a financial institution or a member of the general public as being used by someone suspected of criminal activity.
3. The credit card has been used with frequent small transactions suspected of being probing activities.
4. The user makes frequent use of credit card transactions within a short period of time in a manner that is obviously at variance with the normal transaction activities of the cardholder.
5. An inactive credit card with unexpected unusual transactions.
6. The telephone number provided by the cardholder is the same as a telephone number provided by a cardholder of another watch-listed credit card settlement number in the same issuer , suspected of criminal activity.
7. A credit card with transactions that show signs of involvement in fraud, as set out in the Template for Directions Governing Anti-Money Laundering and Counter-Financing for Credit Card Business Institutions.
8. Other credit cards or transactions determined by the competent authority or issuers that are suspected of being involved in fraud. |
| Article 10 |
Card issuers shall implement enhanced due diligence to verify the identity of the cardholder in cases of abnormal credit cards 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 cardholder. 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 11 |
When card issuers implement control and management measures for abnormal credit cards suspected of fraud, as described in the second half of Paragraph 1, Article 8 of the Act,they may send peer notifications other credit card business institutions by telephone, e-mail, or other means acceptable to the recipient to obtain information about such abnormal credit cards suspected of fraud.
The recipient of the inquiry shall provide the following information as requested by the inquiring institution:
1. Name of the cardholder and card activation date.
2. The age and occupation of the cardholder.
3. Whether there are any abnormal transactions on the credit card and whether the card 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. |