Anti-Money Laundering

AML/CFT Policy

KGI Life periodically examines its internal AML/CFT regulations and operations, and reviews monitoring patterns and reporting standards as appropriate, to improve the quality of suspicious transaction reports (STRs), better prevent crimes, and avoid defensive reporting. In 2024, the Company revised the “Guidelines on AML, CFT, and PF”, the “Detailed Guidelines on AML, CFT, and PF”, and the “Guidelines on Information Sharing for AML/CFT”, in alignment with regulatory requirements and practical operational needs.

AML/CFT Organizational Structure

The Company established the AML/CFT risk management framework for corporate governance, system design, controls and procedures, risk management, and independent audits, and incorporated AML/CFT awareness into the corporate culture through information system use, process management, and the development of employees' professional competencies.

To further implement AML/CFT mechanisms, the Chief Compliance Officer serves as the AML/CFT officer and oversees related operations. The AML/CFT officer reports related matters to the Board of Directors and the Audit Committee at least once every six months. The Board of Directors oversees related matters, risk assessments, and project operations. Furthermore, the Company has established a dedicated AML/CFT unit to oversee related operations. Each business unit is assigned a supervisory officer, who is a senior staff member or a supervisor at the section level or above, to oversee the implementation of AML/CFT mechanisms within their respective units, ensuring the effective functioning of the first line of defense.

Continued Improvement of the AML/CFT Process

KGI Life's comprehensive risk assessment methodology for money laundering and terrorism financing references relevant domestic and international risk management reports and trends, and establishes inherent risk indicators and control effectiveness indicators in a replicable, measurable, and comparable manner. The methodology also strengthens the logical basis for assessing residual risks. The indicators serve as the basis for monitoring changes in risk trends, enabling the Company to understand its overall risk exposure and the correlation with national risk assessments. We also formulate risk limits and risk appetite based on the Company's clientele, products, and transaction policies to continuously monitor the Company's risks of money laundering and terrorism financing, building a complete risk profile.

The results of the 2024 comprehensive AML/CFT risk assessment were found to be in line with KGI Life’s risk limit requirements and risk appetite. In accordance with the improvement initiatives outlined in the “Comprehensive ML/TF Risk Assessment Report and Prevention Plan”, the Company implemented Robotic Process Automation (RPA) to browse and extract relevant watchlist-related online news, assisting reviewers in conducting checks and retaining records. Additionally, an “AML One Team” was established, dedicated to performing name screening and other operations for the sales and service units, enabling specialized division of labor and further strengthening the Company’s AML/CFT framework.