Anti-Money Laundering

AML/CFT Policy

KGI Life regularly reviews its internal AML/CFT policies and procedures, and periodically refines its transaction monitoring rules and reporting standards to improve the quality of its suspicious transaction reports (STRs), strengthen its effectiveness in blocking criminal activity, and avoid defensive filing. To align with new regulations and operational practices, KGI Life updated several key documents, including the “Guidelines on AML, CFT, and PF”, the “Policy for Assessing and Preventing Risks of Money Laundering, Terrorist Financing, and Proliferation Financing”, the “Guidelines for Handling the Assessment and Prevention of Risks of Money Laundering, Terrorist Financing, and Proliferation Financing”, and the “Detailed Guidelines on AML, CFT, and PF”.

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 money laundering and terrorist financing risk assessment methodology draws on domestic and international risk management reports and trends. KGI Life has established replicable and comparable indicators for inherent risk and control effectiveness, strengthening the basis for its residual risk assessment. These indicators serve as a baseline for monitoring risk trends, allowing it to understand its overall risk exposure and its connection to the national risk assessment. The Company also defines its risk limits and appetite based on its customer profiles, products, and transaction policies, enabling constant monitoring and the creation of a complete risk profile.

KGI Life also strengthens AML/CFT risk awareness among its directors, senior executives, home office employees, and agents through regular training covering the latest domestic and international AML/CFT rules and standards and trends in money laundering and terrorist financing risk. It also provides customized training for specific units, equipping those staff with the AML expertise their particular roles require.