Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of Banking Business and Other Financial Institutions Designated by the Financial Supervisory Commission Article 9

A banking business and other financial institutions designated by the FSC shall establish screening procedures to ensure high standards when hiring employees, including examining whether the prospective employee has character integrity and the professional knowledge required to perform its duty.The chief AML/CFT compliance officer, the personnel of dedicated AML/CFT unit and the AML/CFT supervisors of domestic business units of a banking business and other financial institutions designated by the FSC shall possess one of the following qualification requirements in three (3) months after appointment/assignment to the position and the financial institution shall set out relevant control mechanism to ensure compliance with the provisions hereof:1. Having served as a legal compliance officer or AML/CFT personnel on a full-time basis for at least three (3) years;2. Having attended at least 24 hours of courses offered by institutions recognized by the FSC, passed the exams, and received completion certificates therefor. But personnel who have met the qualification requirement for the legal compliance officer are deemed to meet the qualification requirement under this Subparagraph after they have attended at least 12 hours of training on AML/CFT offered by institutions recognized by the FSC; or3. Having received an AML/CFT professional certificate issued by an international or a domestic institution recognized by the FSC.The chief AML/CFT compliance officer, AML/CFT personnel and the AML/CFT supervisor of domestic business units of a banking business and other financial institutions designated by the FSC shall annually attend at least 12 hours of training on AML/CFT offered by internal or external training units consented by the chief AML/CFT compliance officer mentioned in Paragraph 1of Article 7herein.The training shall cover at least newly amended laws and regulations, trends and typologies of ML/TF risks. If the person has obtained an AML/CFT professional certificate issued by an international or a domestic institution recognized by the FSC in a year, the certificate may be used to substitute the training hours for the year.The AML/CFT supervisor and the AML/CFT compliance officer and personnel of foreign business units of a banking business and other financial institutions designated by the FSC shall possess professional knowledge on AML/CFT, be well informed in relevant local regulations, and annually attend at least 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 units consented by the chief AML/CFT compliance officer mentioned in Paragraph 1 of Article 7herein.A banking business and other financial institutions designated by the FSC shall annually arrange appropriate hours and contents of orientation and on-the-job training on AML/CFT for its directors (council members), supervisors, president, legal compliance personnel, internal auditors, and business personnel in view of the nature of its business, to familiarize them with their AML/CFT duties and equip them with the professional knowhow to perform their duties.Foreign migrant worker remittance companies shall be required to arrange pre-job training and on-the-job training on AML/CFT with suitable contents and appropriate number of hours for related personnel each year based on the characteristics of their business, ML/TF risks, and common deficiencies found in foreign migrant worker remittance transactions. The regulations from Paragraph 2 to the preceding paragraph do not apply.