Taiwan payment union joins government to boost anti-money laundering efforts
台灣第三方支付公會攜手政府加強防制洗錢工作
| TAIPEI (Taiwan News) — Taiwan Third-Party Payment Services Industry Association Chair Liu Shih-wei (劉士維) said the group is cooperating with government agencies to strengthen efforts against money laundering and illicit financial activity.
A third-party payment is a transaction where an intermediary handles money transfers between buyers and sellers. This service lets businesses accept online payments without a bank merchant account, making transactions faster and easier. The collaboration involves the Ministry of Digital Affairs, the Ministry of Justice, the Financial Supervisory Commission, and the Taiwan High Prosecutors Office, per CNA. The alliance, founded in August, comprises around 40 companies, including Green World FinTech Service Co., Line Pay, and Momo. At a press conference on Monday, Liu said that third-party payment services play a crucial role in Taiwan’s digital economy. The group aims to help small and medium-sized enterprises expand e-commerce by providing a safer and more reliable payment environment. The association has introduced new measures, including stricter identity verification and enhanced reviews for high-risk clients. It will also cooperate with government agencies to report suspicious transactions and share intelligence on financial crimes. In addition, a rigorous merchant screening system has been set up to keep gambling and pornographic websites off its platforms. Digital Minister Lin Yi-ching (林宜敬) noted that while the service provides a convenient transaction method, many users may not fully understand how it works or the risks involved. He said some fraud groups exploit the service for money laundering, creating numerous companies that exist only on paper or are not genuinely operating. To combat such misuse, Lin said the ministry has worked with the Financial Supervisory Commission to inspect 53 third-party payment service providers since July 2023. The authorities fined eight companies a total of NT$2.73 million (US$85,000) and revoked the licenses of three others. Lin added that some scammers create fake online stores to trick third-party payment providers into accepting users’ deposits. He said the ministry will tighten its review process, and any company that fails the checks will not be allowed to offer third-party payment services. |
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| Carol Yang Taiwan News, Staff Writer | |
| 2025-10-28 |
