Taiwan Tati Cultural and Educational Foundation

US president-elect Donald Trump’s telephone conversation with President Tsai Ing-wen (蔡英文) on Friday last week made the headlines at home and abroad, with some accusing Trump of committing a diplomatic faux pas that rattled China, while others commended his decision to take Tsai’s call and described it as a significant landmark in Taiwan-US relations.

As political pundits and policymakers continue to debate whether it was a simple telephone call or a momentous mistake, while others try to decipher whether Trump’s move hints at the direction of his future policy in the Asia-Pacific region, one thing at least is certain: Taiwan’s diplomatic morale has been greatly boosted as a result of the historic call.

Earlier this year, Mega International Commercial Bank’s New York branch was punished with a fine of US$180 million by the US Department of Financial Services for breaching the US Bank Secrecy Act and money-laundering laws. The news shocked the nation.

Taiwan’s Money Laundering Control Act (洗錢防制法) lags far behind international standards: It does not punish unsuccessful attempts at money laundering, touch on criminal liability of legal entities, its regulations on financial inspection and law enforcement are incomplete, penalties for violations are mild and reporting obligations are low. In addition, confiscation powers are inadequate, making it impossible to completely seize illegal profits.