VZCZCXYZ0004
RR RUEHWEB

DE RUEHIN #0360/01 0450344
ZNR UUUUU ZZH
R 140344Z FEB 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 4113
INFO RUEATRS/DEPT OF TREASURY WASHDC
RHMCSUU/FBI WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

UNCLAS AIT TAIPEI 000360 
 
SIPDIS 
 
SIPDIS, SENSITIVE 
 
STATE PLEASE PASS NSC and OFAC 
DEPARTMENT OF HOMELAND SECURITY CENTER WASHINGTON DC 
STATE FOR EB/ESC/TFS (KATHERINE LEAHY), EB/ESC/TFS (LEANNE CANNON, 
S/CT (PATTY HILL), S/CT FINANCE GALER AND NOVIS 
 
E.O. 12958: N/A 
TAGS: ETTC KTFN EFIN PTER LE PREL TW
SUBJECT: TERRORIST FINANCE: USG CONCERN OVER ILLICIT CASH COURIERS 
 
REF: SECSTATE 16120 
 
¶1.  (SBU) SUMMARY.  Per reftel, AITOFF recently shared U.S. concern 
over illicit cash couriers with Taiwan officials.  Taiwan officials 
responded positively, described current compliance with 
recommendations of the Financial Action Task Force (FATF), and 
indicated they will enhance compliance efforts in the future.  These 
officials asked if the conventions cited in reftel could be grounds 
for the United States to share information with Taiwan regarding a 
recent money laundering case.  Action request para 10.  END 
SUMMARY. 
 
Compliance 
---------- 
 
¶2.  (U) On February 12, AITOFF demarched Taiwan Ministry of Justice 
(MOJ) officials on U.S. concern over illicit cash couriers (reftel). 
 According to MOJ officials, although Taiwan has been barred from 
Financial Anti-Terror Task Force (FATF) training, it has made great 
efforts to comply with FATF standards and guidance for monitoring 
cross-border transportation of illicit currency and other 
bearer-negotiable instruments. 
 
¶3.  (U) Taiwan requires both inbound and outbound passengers to 
declare local and foreign currencies as well as gold. The currencies 
and gold are subject to separate limits as follow: 
--60,000 NT Dollar, 
--20,000 RMB, 
--10,000 US Dollar equivalent in USD and other foreign currencies, 
--US$20,000 gold. 
 
¶4.  (U) Currencies exceeding the limits without declaration will be 
confiscated.  False declarations can also lead to confiscation.  For 
gold exceeding the limit, passengers are required to obtain prior 
import/export permit in addition to the declaration, and failure to 
comply can lead to confiscation and fines. 
 
¶5.  (U) Any currency declaration for an amount exceeding NT$1.5 
million (US$45,000) is referred to the MOJ Money Laundering 
Prevention Center (MLPC) for investigation of whether there is any 
connection to money laundering and other illegal activities. 
 
Cooperation with United States 
------------------------------ 
 
¶6.  (U) In July 2005, Taiwan joined the Container Security 
Initiative (CSI) program which contributed to seizure in August 2005 
of US$2 million in counterfeit US$ notes in a container in transit 
from the PRC to the United States.  With assistance from the U.S. 
Secret Service over the past two years, Taiwan has conducted 
 
SIPDIS 
numerous counterfeit US$ note identification training programs for 
banking regulators, officers and law enforcement officials. 
 
Additional Efforts 
------------------ 
 
¶7.  (U) MOJ officials told AITOFF that Taiwan will continue to 
improve its compliance with FATF recommendations.  The MOJ will 
amend laws to restrict carrying bank checks and traveler checks 
across the border.  MOJ officials will continue their training 
efforts and welcome any U.S. training that can fill the gap left by 
Taiwan's exclusion from FATF training. 
 
Information Sharing 
------------------- 
 
¶8.  (U) The MOJ officials said Taiwan will continue to cooperate 
with the United States in information sharing under the Mutual Legal 
Assistance Agreement (MLAA). 
 
¶9.  (SBU) The MOJ officials also asked if the UN International 
Convention for the Suppression of Terrorism, Article 18, 2(b) (cited 
reftel) which calls for information sharing on cross-border cash 
couriers and related FATF recommendations could be grounds for the 
United States to share information related to the undeclared 
US$100,000 that U.S. Customs officials seized on February 3 when 
China Rebar Pacific Group Chairman Wang You-theng attempted to 
re-enter the United States.  Wang has been indicted in Taiwan for 
embezzlement of huge sums (US$ hundreds of millions) from publicly 
listed companies and MOJ officials suspect that the US$100,000 was 
part of the embezzled money.  They believe that some of the 
documents surrendered by Wang to U.S. Customs related to his 
embezzlement and money laundering operations in Taiwan and could aid 
in ongoing investigations here. 
 
¶10.  (SBU) AIT requests advice from EB/ESC/TFSS and S/CT on whether 
the FATF recommendation for enhancing and sustaining systemic 
intelligence sharing could be another basis for U.S. agencies to 
share information, including documents seized, on this high-profile 
embezzlement/money laundering case, and, if so, could the request be 
made through the Asia Pacific Group on Money Laundering, where 
Taiwan serves on the steering committee? 
 
YOUNG