Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of Financial Leasing Enterprises Article 5

A financial leasing enterprise shall be equipped with adequate AML/CFT resources appropriate to the size and risks of its business. The board of directors of the financial leasing enterprise shall appoint an AML/CFT compliance officer at the management level and vest the officer full authority in coordinating and supervising AML/CFT implementation and shall ensure that the officer do not hold concurrent positions that may have a conflict of interest with the AML/CFT responsibilities.The AML/CFT compliance officer mentioned in the preceding paragraph shall be charged with the following duties:1. Coordinating and supervising the planning and implementation of policies and procedures for identifying, assessing and understanding ML/TF risks, and monitoring and controlling ML/TF risks.2. Developing an AML/CFT program and coordinating and supervising the implementation of the program.3. Confirming compliance with AML/CFT regulations, including the relevant specimen or self-regulatory rules formulated by the related leasing association and accepted by the FSC for recordation.4. Supervising the reporting on suspicious ML/TF transactions and on the properties or property interests and location of individuals or legal entities designated by the Counter-Terrorism Financing Act to the Investigation Bureau, Ministry of Justice.5. Other matters related to AML/CFT.The AML/CFT compliance officer mentioned in Paragraph 1 hereof shall report to the board of directors, and supervisors or the audit committee at least annually, or whenever a major AML regulatory violation is discovered.