| Chapter 2 Standards for Identifying Abnormal Accounts (Account Numbers) and Notification Procedures |
Section 4 Virtual Asset Accounts |
| Article 12 |
The criteria for identifying abnormal virtual asset accounts or transactions suspected of involvement in-fraud are as follows:
1. The applicant frequently applies for virtual asset accounts over a short period of time without reasonable explanation.
2. The transaction functions requested by the customer are obviously inconsistent with the customer's age or background.
3. The contact information provided by the customer cannot be verified by using reasonable measures.
4. The virtual asset account has been reported by a virtual asset service provider or a member of the general public as being used by someone suspected of criminal activity.
5. The virtual asset account has been used with frequent small amount inward/outward remittances suspected of being probing activities.
6. The customer makes frequent use of the services or facilities of virtual asset service providers within a short period of time in a manner that is obviously at variance with the normal transaction activities of the customer.
7. An inactive virtual asset account with unexpected unusual transactions.
8. A virtual asset account with transactions that show signs of involvement in fraud, as set out in the Anti-Money Laundering, Counter-Terrorism Financing, and Anti-Fraud Crime and Industry Joint Defense Mechanisms and other self-regulatory rules of the Taiwan Virtual Asset Service Provider Association.
9. Other abnormal virtual asset accounts or transactions deemed suspicious by the competent authority or virtual asset service providers that aresuspected of being involved in fraud. |
| Article 13 |
Virtual asset service providers shall implement enhanced customer due diligence to verify the identity of the customer in cases of abnormal virtual asset accounts suspected of fraud, and may adopt the following ongoing customer due diligence measures:
1. Obtaining the approval of senior management of the virtual asset service provider 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 customer; 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 14 |
When virtual asset service providers implement control measures for abnormal virtual asset 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 virtual asset service providers by telephone, e-mail, or other means acceptable to the recipient to obtain information about such abnormal virtual asset accounts suspected of fraud.
The recipient of the inquiry shall provide the following information as requested by the inquiring institution:
1. Name of the customer of the virtual asset account and opening date of the virtual asset account.
2. The age and occupation of the customer and the purpose of the virtual asset account opening or transaction.
3. Whether there are any abnormal transactions in the virtual asset 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 Taiwan Virtual Asset Service Provider Association and reported to the competent authority for recordation. |