The primary service provided by third-party payment providers is acting as an intermediary for payments and collections. In online transactions, they facilitate money transfers between buyers (payers) and sellers (payees). Currently, third-party payment operations in Taiwan are not exclusive or franchise based. However, to prevent such services from becoming tools for fraud or money laundering, Taiwan’s Digital Ministry Industry Agency has established the “Regulations for Anti-Money Laundering and Service Capability Registration for Businesses or Personnel Providing Third-Party Payment Services.” These regulations officially came into effect on November 30, 2024.

Third-party payment service providers applying to the Taiwan Ministry of Digital Affairs for anti-money laundering and service capability registration must meet the following qualifications:

1. Applicants must have legally completed business registration as a company, limited partnership, sole proprietorship, or partnership, or registered as a branch of a foreign company. Foreign entities established outside Taiwan that are not registered as companies or branches under the Company Act and have not completed anti-money laundering and service capability registration are prohibited from providing services within Taiwan.
2. The business item should include “Third Party Payment” services.

Moreover, company representatives and ultimate beneficiary owners must not be involved in the following serious criminal offenses such as organized crime, fraud, corruption, or similar violations, where less than five year or three years have elapsed since the final judgement; bankruptcy without restoration of rights; or unfit conduct resulting from dishonest behaviour. This regulation aims to strengthen financial management and ensure compliance and security within the third-party payment market.

The amounts received and paid through energy registrants acting as agents must either be fully deposited into a trust account or secured with a full performance guarantee from a bank.

After the application is submitted, experts and scholars are appointed as committee members to conduct review meetings. Taiwan’s Industry Agency has begun the review process, focusing on the following key aspects:

1. The financial health of the applicant.
2. The staffing and expertise of personnel exclusively handling third-party payment services.
3. The ability to provide third-party payment services effectively.
4. The capability to implement effective management practices.
5. The robustness and functionality of internal control and audit systems.
   
   
   

Applications will be denied registration, or existing registrations will be revoked, under the following circumstances:

1. False or fraudulent information in the application.
2. Non-compliance with conditions outlined in Article 3 by company executives, partners, or ultimate beneficial owners.
3. Negative net asset value.
4. Failure to pay due taxes.
5. Lack of specific or effectively implemented internal control and audit systems.
6. Business operations that potentially violate laws or regulations.
7. Services being used for fraud, money laundering or terrorist financing.
8. Inability of the company, its executives, or partners to sustainably and responsibly operate a third-party payment service.

At present, a total of 70 entities have been approved and listed, with the list updated periodically to serve as a reference for future collaborations. The registration for third-party payment service capabilities is valid for two years, after which applicants can reapply. Upon successful review, the registration may be renewed for another two years on a rolling basis.