I. Date of Decision: February 3, 2020.

II. Sanctioned Target: MasterLink Securities Corp.

III. Legal Basis: Paragraph 5 of Article 7 of Money Laundering Control Act, Article 65 of Securities and Exchange Act, Subparagraph 7 of Article 3 and Subparagraph 1, Paragraph 1 of Article 6 of Regulations Governing Anti-Money Laundering of Financial Institutions, and Paragraph 2 of Article 2 of Regulations Governing Securities Firms.

IV. Facts & Reasons:

(I) Fail to verify the identity of the customer’s beneficial owner and take reasonable measures when conduct the customer due diligence (CDD) on the general corporate accounts and FINI accounts.

(II) Fail to keep taking any enhanced CDD policy against transactions with high-risk customers.

(III) Fail to check the internal personnel’s account or verify whether there is any conflict of interest with the order placed by the customer or make record, when processing the consigned transaction of domestic securities.

(IV) Fail to perform the account data control over the limit of transaction requested by the customer in another branch company, thereby causing the limit of transaction authorized to the customer amount to be more than NT$5 million, while fail to require the financial statement securing 30% of the total transaction amount from the customer.

(V) Fail to record the investigation on subscribers placing order from the same IP address to verify whether they apply for the subscription in the name of another person or under disguise of another person, when processing the public application offer (lots drawing) underwritten by the Company.

V. Consequence: It is fined NT$500,000 pursuant to Paragraph 5 of Article 7 of Money Laundering Control Act, and ordered to correct its misconduct in accordance with Article 65 of Securities and Exchange Act.

 

Contact Unit: Division Director Hsu, Securities Firms Division, Securities and Futures Bureau

Contact No.: 2774-7161

Should you have any questions, please write to:FSCmail