Following the previous penalty of 1.52 million yuan imposed by the Financial Supervisory Commission (FSC) on ACE Exchange for failing to implement anti-money laundering regulations, another member of the Taiwan Virtual Currency Association has been fined by the FSC for violating the Anti-Money Laundering Act.
According to a press release issued by the FSC, Rybit Limited (Rybit) violated the Anti-Money Laundering Act and the Personal Information Protection Act due to the following deficiencies:
(1) Failure to conduct appropriate risk assessments for corporate clients, failure to establish regular review frequencies and operating procedures for clients with established business relationships, and failure to confirm the identities of customers in accordance with regulations.
(2) Failure to include the sources of virtual currencies provided by virtual currency suppliers in transaction monitoring, and situations involving the accuracy of customer-provided basic information in some transaction monitoring patterns, without verifying the accuracy of such information.
(3) Incomplete retention of customer transaction records, which is insufficient for reconstructing individual customer transactions.
(4) Improper retention of customer personal information in external company systems without appropriate security measures.
In response to these violations, the FSC announced a fine of 1.02 million New Taiwan Dollars on Rybit in accordance with Article 5(2), Article 7(5), Article 8(4) of the Anti-Money Laundering Act, and Article 48(2) of the Personal Information Protection Act.
