The Taiwan Financial Supervisory Commission published its primary examination findings for the first half of 2026, identifying systemic or common deficiencies across 10 sectors, including financial holding companies. The findings center on fraud prevention and AML/CFT/CPF, customer protection, internal management and cyber security, with institutions expected to strengthen preventive controls, monitoring and documentation. Fraud-related weaknesses included inadequate customer due diligence for newly established companies, insufficient scrutiny of abnormal virtual account activity, delayed reporting of watch-listed electronic payment accounts and failures to verify agency relationships or suspicious corporate transactions. Customer protection findings covered weak monitoring for links between customer and salesperson contact details, improper tying or inducement involving mortgage life insurance, incomplete fund disclosures and the sale of Total Loss-Absorbing Capacity bonds to non-professional investors. The commission called for stronger account-opening reviews, ongoing transaction monitoring, immediate reporting to the Joint Credit Information Center and compliant product sales and recommendation practices. Internal management deficiencies involved incomplete related-party records, inadequate pre-transaction checks and improper comparisons of related-party credit terms. Cyber security findings included weak website security, insecure third-party libraries, deficient privileged-access controls, incomplete asset and log management, and gaps in mobile application testing and vulnerability remediation. Institutions should establish security hardening standards, control privileged accounts, maintain complete inventories and audit trails, and test and remediate applications before releasing updates.

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