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

105.04.28

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.

The obligations of the originator bank, intermediary bank and beneficiary bank are described as follows:

1. The originator bank:

(1)When releasing funds, a beneficiary bank should verify the beneficiay’s identity in accordance with the requirements in the Money Laundering Control Actand the Regulations Governing Cash Transaction Reports (CTR) and Suspicious Transaction Reports (STR) from Financial Institutions.

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)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 thatfail to provide adequate originator and beneficiary information.

(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)When releasing funds, a beneficiary bank should verify the beneficiay’s identity in accordance with the requirements in the Money Laundering Control Actand 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 thatfail to provide adequate originator and beneficiary information.

3.The beneficiary bank:

(1)When releasing funds, a beneficiary bank should verify the beneficiay’s identity in accordance with the requirements in the Money Laundering Control Actand 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 thatfail to provide adequate originator and beneficiary information.