Offshore banking branches may rely on the assistance of intermediaries to perform CDD on offshore customers in accordance with these Rules and Money Laundering Control Act or criteria no less stringent than the aforementioned regulations and in compliance with the provisions below. Offshore banking branches shall also report to the FSC of the implementation plan and the list of intermediaries:
1. The act of an intermediary assisting an offshore banking branch in performing CDD conforms to or does not violate the laws and regulations at where the intermediary is located.
2. The intermediary in the latest audit on its anti-money laundering and combatting terrorism financing operation by the competent authority at where it is located or byan external institution receives a rating of “satisfactory”, “no downgrade” or “no material deficiency”, or it has taken improvement actions against the deficiency which are accepted as satisfactory by the competent authority or the external institution, or its downgraded rating has been raised. If the intermediary is subsequently downgraded by the competent authority at where it is located or by an external institution or subject to disciplinary action imposed by the competent authority at where it is located due to some material deficiency, the offshore banking branch should suspend the service of the intermediary in performing CDD.
3. An offshore banking branch should sign an agreement with the intermediary it intends to rely on. The agreement should specify the extent of assistance to be rendered by the intermediary in CDD process and proper measures to be taken by the intermediary for confidentiality and maintenance of customer data, and rights and obligations of the parties. The intermediary shall keep the records obtained in performing CDD and provide in a timely manner any document or information obtained in the course of performing CDD upon the request of the offshore banking branch.
4. An offshore banking branch should use a risk-based approach to audit and supervise on a regular and an as-needed basis the intermediary’s implementation of CDD process and the intermediary’s use, processing and control of customer information; an offshore banking branch may carry out such audit through an appointed externalinstitution.
The term “intermediary” referred to in the preceding paragraph means an overseas branch or subsidiary of a domestic bank, the head office or a branch directly under the head office of the branch of a foreign bank in Taiwan, the parent bank ora branch directly under the parent bank of the branch of a foreign bank in Taiwan.
The content of “implementationplan” referred to in Paragraph 1 herein shall include at least the scope of CDD performed by anintermediary and intermediary’s internal control system for the confidentiality and maintenance of customer data.
Offshore banking branches should review the results of CDD performed by intermediaries and bear the ultimate responsibility for the CDD process and data maintenance.