Regulations Governing Anti-money Laundering of Agricultural Financial Institutions Article 2

Terms used in these Regulations are defined as follows:1. The term “agricultural financial institution” shall mean credit departments of farmers’ associations, credit departments of fishermen’s associations (collectively referred to as “credit departments” hereunder) and Agricultural Bank of Taiwan.2. The term “a certain amount” shall mean NT$500,000 (including the foreign currency equivalent thereof).3. The term “cash transaction” shall mean cash receipt or payment in a single transaction (including all transactions recorded on cash deposit or withdrawal vouchers for accounting purpose), or the transaction of currency exchange.4. The term “customer” shall mean the customers of agricultural financial institutions.5. The term “beneficial owner” shall mean a natural person who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted, including those persons who exercise ultimate effective control over a legal person or arrangement.6. The term “risk-based approach” (RBA) shall mean agricultural financial institutions should identify, assess and understand the money laundering and terrorist financing (ML/TF) risks to which they are exposed and take anti-money laundering and countering terrorist financing (AML/CFT) measures commensurate to those risks in order to mitigate them. Based on the RBA, agricultural financial institutions should adopt enhanced control measures for higher risk situations, and adopt relatively simplified control measures for lower risk situations to allocate resources efficiently, and use the most appropriate and effective approach to mitigate the identified ML/TF risks.