Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of Securities and Futures Business and Other Financial Institutions Designated by the Financial Supervisory Commission Article 7

Securities and futures business and other financial institutions designated by the FSC shall establish procedures to ensure high standards for employee screening and hiring, including examining whether the prospective employee has integrity of character and the professional knowledge required to perform their duties.The dedicated AML/CFT personnel, the chief AML/CFT officer, and the domestic-business-unit AML/CFT supervisory officer of securities and futures business and other financial institutions designated by the FSC shall meet one of the following qualification requirements within three months after appointment, and the securities and futures business and other financial institutions designated by the FSC shall adopt relevant control mechanisms to ensure compliance:1.Having served as an officer or AML/CFT personnel on a full-time basis for at least 3 years.2.The dedicated AML/CFT personnel, and the chief AML/CFT officer shall have attended not less than 24 hours of courses organized by an institution recognized by the FSC, passed the exams and received completion certificates therefor. The AML/CFT supervisory officer of domestic business units shall have attended not less than 12 hours of courses organized by an institution recognized by the FSC, passed the exams and received completion certificates therefor. A chief compliance officer concurrently holding the post of chief AML/CFT officer, or a compliance personnel concurrently holding a post as a dedicated AML/CFT personnel will be deemed to have met the qualification requirements under this subparagraph after having attended 12 hours of education and training organized by an institution recognized by the FSC.3.Having received a domestic or international AML/CFT professional certificate issued by an institution recognized by the FSC.The dedicated personnel chief officer, and domestic-business-unit supervisory officer referred to in the preceding paragraph shall at least attend 12 hours of AML/CFT training organized by internal or external training institutions approved by the chief officer under Article 5, paragraph 1 every year. The training shall cover at least newly amended laws and regulations, and trends and patterns of money laundering and terrorism financing risks. If the person has obtained a domestic or international AML/CFT professional certificate issued by an institution recognized by the FSC in a given year, the certificate may be used to offset the training hours for the year.The AML/CFT supervisory officer and the AML/CFT officer and personnel of foreign business units of securities and futures business and other financial institutions designated by the FSC shall have expertise in anti-money laundering, and be familiar with relevant local laws and regulations, and shall at least attend 12 hours of training on AML/CFT offered by foreign competent authorities or relevant institutions. If no such training is available, the personnel may attend training courses offered by internal or external training institutions approved by the chief officer under Article 5, paragraph 1.Securities and futures business and other financial institutions designated by the FSC shall arrange appropriate hours of education and on-the-job training of suitable contents on AML/CFT in view of the nature of their business for their directors, supervisors, general managers, legal compliance personnel, internal auditors, and associated persons to familiarize them with their AML/CFT duties and equip them with the professional knowhow to perform their duties.