Taiwan Country Summary

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 the Act on Property Declaration by Public Servants, which mandates annual property disclosures for senior officials. In 2023, the Control Yuan identified 28 violations, resulting in fines totaling approximately $354,000. The country adheres to the UN Convention against Corruption and has implemented measures for ethical corporate management, while the U.S. government reports no known instances of bribery related to foreign investment approvals.

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. The economy is heavily reliant on exports, particularly in high-technology sectors such as semiconductors and telecommunications, supported by a skilled workforce of 23.5 million people. The government actively promotes foreign direct investment (FDI) through incentives and initiatives aimed at leveraging Taiwan's strengths in advanced technology and manufacturing.

Taiwan's investment climate is characterized by a strong emphasis 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 tightening regulations to prevent circumvention by PRC firms. 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.