Regulations Governing Internal Audit and Internal Control System of Anti-money Laundering and Countering Terrorism of Agricultural Financial Institutions Article 3

The Agricultural Bank of Taiwan shall establish specific policies and procedures for correspondent banking and other similar relationships, including at least:1. Gather sufficient publicly available information to fully understand the nature of the respondent institution’s business and to determine its reputation and quality of management, including whether it has complied with anti-money laundering and countering financing of terrorism (AML/CFT) regulations and whether it has been investigated or received administrative sanction in connection with money laundering or terrorist financing (ML/TF);2. Assess whether the respondent institution has adequate and effective AML/CFT controls;3. Obtain approval from senior management before establishing relationships with a respondent institution;4. Document the respective AML/CFT responsibilities of each party;5. Where a correspondent relationship involves in “payable–through accounts”, it should be satisfied that the respondent institution has performed customer due diligence (CDD) on customers who have direct access to the accounts of the correspondent bank and is able to provide relevant CDD information to the correspondent bank upon request;6. The banking business is prohibited from entering into correspondent relationship with shell banks or respondent institutions that permit their accounts to be used by shell banks;7. For a respondent institution that is unable to provide the aforementioned information upon the request of Agricultural Bank of Taiwan, Agricultural Bank of Taiwan may decline its application to open an account, suspend transactions with it, file a suspicious ML/TF transaction report or terminate business relationship with it.