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, particularly in public procurement, including mandatory property declarations for senior officials and significant penalties for corrupt activities. The government actively enforces these laws, as evidenced by fines imposed for violations, and adheres to international standards such as the UN Convention against Corruption. While corruption exists, especially linked to the intertwining of politics and business, it is not a major barrier for businesses operating in Taiwan, and petty corruption is rare.

Taiwan is a significant player in global trade, ranking among the world's top 20 economies with a GDP that underscores its export-dependent nature. The country boasts a highly skilled workforce and is pivotal in high-technology supply chains, particularly in sectors like semiconductors and telecommunications. Despite its economic strengths, Taiwan faces challenges such as regulatory inconsistencies and limited foreign ownership in sensitive industries.

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 credits and streamlined procedures for foreign investors, while also maintaining a negative list of industries closed to foreign investment due to national security concerns. However, challenges such as excessive regulations, foreign ownership limits in sensitive sectors, and concerns over transparency in the investment approval process remain significant hurdles for potential investors.