VZCZCXYZ0010
RR RUEHWEB

DE RUEHIN #0509 1190959
ZNR UUUUU ZZH
R 290959Z APR 09
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1467
RUEATRS/DEPT OF TREASURY WASHDC
RUCNDT/USMISSION USUN NEW YORK 0117

UNCLAS AIT TAIPEI 000509 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
STATE FOR INS, NEA/IR, EEB/ESC/TFS/LINDA RECHT, NEA/I/JKONDOS, AND 
S/CT/TDROZDENKO 
TREASURY FOR TFFC LADAN ARCHIN 
 
E.O. 12958: N/A 
TAGS: EFIN KTFN PTER ETTC PHUM EAID ECON SL TW
SUBJECT:  Taiwan Enacts New Anti-Terrorism Finance Law 
 
¶1. (SBU) SUMMARY.  On April 14, Taiwan's legislature passed a bill 
that authorizes financial regulators to take enhanced action against 
terrorist financing, including freezing bank accounts and financial 
transactions associated with designated terrorists, entities, and 
countries.  In the past, only prosecutors were authorized to take 
similar actions against terrorist financing activities.  END 
SUMMARY. 
 
¶2. (U) On April 14, the Legislative Yuan (LY) passed the bill to 
amend the Foreign Exchange Control Act and the Offshore Banking Act. 
 President Ma Ying-jeou promulgated the amended law on April 29. 
According to the law's provisions, the Financial Supervisory 
Commission (FSC) is authorized to take necessary actions to combat 
terrorist financing, including freezing bank accounts and financial 
transactions with individuals, entities, territories, and countries 
designated by the United Nations.  The legislation also applies to 
actions required to further international cooperation, including 
requests for action by the U.S. 
 
¶3. (U) The legislation requires the FSC to obtain Executive Yuan 
approval before taking action. In addition, the FSC is required to 
seek the LY's subsequent concurrence within ten days after any 
actions are taken.  The FSC, however, has to abandon the actions if 
the LY rejects them. 
 
COMMENT 
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¶4. (SBU) The legislation gives the FSC, in addition to prosecutors, 
a solid legal basis on which to take action against terrorists and 
entities designated by the United Nations and the United States. 
The FSC, the Central Bank of the ROC, and the Ministry of Justice 
Investigation Bureau have all been cooperative with past requests on 
terrorist financing issues, but tend to focus primarily on search 
and investigation.  Taiwan's Money Laundering Prevention Law already 
authorizes prosecutors to seize and freeze assets and financial 
transactions involved in terrorist activities.  The new law 
increases Taiwan's ability to investigate such activities. 
 
YOUNG