Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Subject: 
The obligations of the  cover intermediary bank, the originator bank and 
beneficiary bank mentioned in SWIFT MT202COV are  stipulated as follows, and will 
take effect starting November 1, 2010.
Explanation: 
The obligations of the  originator bank, intermediary bank and beneficiary bank are 
described as follows: 
1. The originator bank:
(1)An originator bank must verify the cover payment message, including full name, 
　 account number and address of the remitter, and follow the instructions provided 
　 in the Money Laundering Control Act and the Regulations Governing Cash 
　 Transaction Reports (CTR) and Suspicious Transaction Reports (STR)  from 
　 Financial Institutions.
(2)An originator bank should practice KYC vigorously to understand the basic 
　 information and profile of remittance applicant and its responsible person, the 
　 applicant’s line of business and the parties the applicant deals with, and try
　 to understand the nature of the remittance, review relevant documents and 
　 information of the beneficiary.
(3)If cover payment format is used, a originator bank should send MT202COV message 
　 in place of MT202, not only to verify the information of the originator and the 
　 beneficiary, but also to make sure the content of MT202COV is consistent 
　 with that of MT103 sent to the beneficiary bank.
2. The intermediary bank:
(1)An intermediary bank should establish clear policy and procedure to make sure 
　 the originator and beneficiary fields in the MT202COV are not left blank. Where 
　 an MT202COV contains a blank field or it is manifestly meaningless,the 
　 intermediary bank should take one or more of the following  measures:
　 a. Declining to process the transaction;
　 b. Obtain missing information from the  originator bank or the precedent 
　　　intermediary bank; 
　 c. File a suspicious transaction report (STR) to the anti-money laundering 
　　　authority.
　The decisions taken and the reasons for them should be properly documented. 
(2)An intermediary bank should establish automatic risk-based monitoring 
　 mechanisms, and undertake necessary check and detection of anti-money laundering 
　 information according to the regulations of the county where it is located or 
　 its home country, or at the request of the competent authority, and if any 
　 irregularity is found, cooperate in related actions.
3.The beneficiary bank:
(1)When releasing funds, a beneficiary bank should verify the beneficiary’s 
　 identity in accordance with the requirements in the Money Laundering Control Act
　 and the Regulations Governing Cash Transaction Reports (CTR) and Suspicious 
　 Transaction Reports (STR)  from Financial Institutions.
(2)A beneficiary bank should establish a risk management procedure to handle 
　 remittances with inadequate originator and beneficiary information and consider 
　 restricting or even terminating their relationship with correspondent banks that
　 fail to provide adequate originator and beneficiary  information.