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On May 6, 2026, Taiwan's Financial Supervisory Commission (FSC) issued an amendment to the Regulations on the Implementation of Internal Control and Audit Systems for Financial Holding Companies and Banks (金融控股公司及銀行業內部控制及稽核制度實施辦法). This amendment represents the latest in a series of modifications to the regulations governing internal control and audit frameworks for Taiwan's financial institutions. The FSC has been progressively updating these rules since their initial establishment in 2010, with previous amendments occurring in 2012, 2014, 2015, 2016, 2017, 2018, and 2021. The regulations establish mandatory internal control and audit system requirements applicable to financial holding companies and banking institutions operating in Taiwan. The amendment was preceded by a draft announcement on February 13, 2026, which provided stakeholders with an opportunity to review and comment on the proposed changes. An earlier draft announcement had also been issued on April 17, 2025. These consultation periods allow financial institutions and other interested parties to provide feedback before the FSC finalises regulatory modifications. The specific provisions amended in this iteration have not been detailed in the available source material. However, the ongoing refinement of these regulations reflects the FSC's commitment to maintaining robust governance standards within Taiwan's banking and financial holding company sectors. Financial holding companies and banks operating in Taiwan should review the updated regulations to ensure compliance with the new requirements. The amendment is effective as of May 6, 2026.

The Financial Supervisory Commission (FSC) of Taiwan has released amendments to the implementation rules of internal audit and internal control system of financial holding companies and banking industries. The amendments prescribe: Internal control framework and whistleblowing establishing a three lines of defense model encompassing self-inspection, dedicated risk/compliance/security units, and internal audit, and mandating a comprehensive whistleblowing system that ensures whistleblower protection and avoids conflicts of interest during investigations. Dedicated units and executive roles requiring financial holding companies and banking industries to establish dedicated units for compliance, risk management, and information security, all reporting directly to the president, and mandating the appointment of a chief compliance officer, chief risk officer, and chief information security officer at the vice president level or equivalent. Internal audit and external review stipulating that the internal audit unit must report directly to the board of directors and be led by a chief auditor, while also requiring banks to commission certified public accountants (CPAs) to conduct special audits on their internal control systems, compliance, personal data protection, and anti-money laundering mechanisms. The amendments come into immediate effect, with the exception of specific structural requirements such as the establishment of the three lines of defense, dedicated units, and chief officer roles which are granted a grace period for compliance until December 31, 2028.

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Taiwan's Financial Supervisory Commission Amends Internal Control and Audit System Rules for Financial Holdings and Banks

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Taiwan's Financial Supervisory Commission Amends Internal Control and Audit System Rules for Banks and Financial Holding Companies