FATF status

Taiwan is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Taiwan was undertaken in 2019. According to that Evaluation, Taiwan was deemed Compliant for 10 and Largely Compliant for 26 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 7 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Taiwan has established various laws and regulations to combat corruption, including the Act on Property Declaration by Public Servants, which mandates annual disclosures from senior officials. In 2023, the Control Yuan identified 28 violations, imposing fines totaling $354,000. While corruption is not a significant barrier for businesses in Taiwan, reports of official corruption persist, particularly in public procurement, although petty corruption is rare.

Taiwan is a significant player in global trade, ranking among the world's top 20 economies by GDP and serving as the United States' 8th largest trading partner. With a population of 23.5 million, its economy is heavily reliant on exports, particularly in high-technology sectors such as semiconductors and telecommunications, supported by a skilled workforce. The government is actively promoting economic growth through domestic investment and foreign direct investment (FDI), while also tightening regulations to safeguard national security.

Taiwan's investment climate is characterized by a strong focus on attracting foreign direct investment (FDI), particularly in advanced technology and manufacturing sectors. The government offers various incentives, including tax breaks and streamlined processes for foreign investors, while also implementing strict screening measures to safeguard national security, especially against investments from the People's Republic of China. Despite these efforts, challenges such as regulatory inconsistencies and foreign ownership limits in sensitive industries remain concerns for potential investors.