# How does the Taiwan (FSC / MODA) regulate AI in banking?

Source: https://www.bankingnewsai.com/ai-regulation/taiwan
Last updated: Nov 12, 2026

Taiwan regulates AI in banking through non-binding guidance from the Financial Supervisory Commission (FSC), set since 2026 inside a national framework law. The FSC published six core principles on 17 October 2023 and the Guidelines for AI Applications in the Financial Industry on 20 June 2024, which describe themselves as 'administrative and non-binding in nature'. The Artificial Intelligence Basic Act, promulgated on 14 January 2026, places its duties on the government: the Ministry of Digital Affairs issued the AI Risk Taxonomy and Assessment Framework on 7 July 2026, and sectoral regulators including the FSC are to set risk-based rules under it where needed, with existing laws to be adapted within two years. In 2026 the FSC also published recommendations on frontier-AI cyberattacks (14 July) and consulted on the security of agentic AI (13 October to 12 November).

## At a glance

| Field | Value |
| --- | --- |
| Full name | Financial Supervisory Commission of Taiwan (FSC), with the Ministry of Digital Affairs (MODA) and the National Science and Technology Council (NSTC) under the Artificial Intelligence Basic Act |
| Jurisdiction | Taiwan (FSC: banks, securities and futures firms and insurers; MODA and NSTC: cross-sector AI governance under the AI Basic Act) |
| Role | Integrated financial supervisor whose AI position is non-binding guidance, working since January 2026 inside a national AI framework law that directs sectoral regulators to set risk-based rules where needed |
| How binding | Supervisory guidance |
| Applies to | Financial institutions supervised by the FSC, including financial holding companies, banks, credit cooperatives, bills finance and credit card companies, electronic payment institutions, securities and futures firms and insurers. The FSC's 2024 AI Guidelines are administrative guidance and non-binding; the AI Basic Act places its duties on the government and on sectoral regulators, not directly on banks |
| Key document | Guidelines for AI Applications in the Financial Industry (FSC, 20 June 2024), read with the Artificial Intelligence Basic Act (promulgated 14 January 2026) |
| Latest move | 13 Oct 2026: the FSC published a consultation document on the security of agentic AI in the financial industry (use-case governance, a four-level L1 to L4 risk classification on three axes, zero-trust controls), with comments taken for 30 days to 12 November 2026; 14 Jul 2026: FSC recommendations on frontier-AI attack risk; 7 Jul 2026: the Ministry of Digital Affairs issued the AI Risk Taxonomy and Assessment Framework under Article 16 of the AI Basic Act. |

## Overview

The FSC's own line runs from principles to guidance. Its October 2023 paper set six core principles (governance and accountability, fairness and human-centred values, privacy and customer interests, system robustness and security, transparency and explainability, sustainable development) and eight supporting policies, among them publishing guidelines, instructing industry associations to draft self-regulatory standards and conducting special financial examinations where necessary. The June 2024 Guidelines turn each principle into a chapter of points to watch across the AI life cycle, applied on a risk basis, with general provisions on risk assessment and on managing third-party providers. They name the institution types they cover, say that industry associations may build them into self-regulatory rules, and cite the Bankers Association's operating regulations on AI as the source of their definitions.

The national layer arrived in 2026. The Legislative Yuan passed the Artificial Intelligence Basic Act on 23 December 2025 and it was promulgated on 14 January 2026, with the National Science and Technology Council as central competent authority. Its 20 articles address the government rather than companies. Article 16 has the Ministry of Digital Affairs set a risk taxonomy and assessment framework, issued on 7 July 2026, and has each sectoral regulator follow it when setting risk-based management rules; Article 17 attaches liability, relief and insurance mechanisms to high-risk AI; Article 18 gives the government two years to adapt existing laws. In its October 2026 report to the Legislative Yuan the ministry dated that deadline to 13 January 2028 and said it had reached consensus with eight agencies, the FSC among them, which it expects to complete the framework's process by the end of 2026.

Frontier and agentic AI moved the FSC into security guidance during 2026. Its July paper on AI-enabled attacks takes Anthropic's Claude Mythos Preview as the trigger and asks institutions to accelerate zero trust, continuous monitoring, supplier governance and patch triage under senior-management leadership. Its October consultation document on agentic AI proposes managing agents by use case, a four-level risk classification and zero-trust controls that treat an agent as a non-human identity. Both are advisory and were published in Chinese. The July paper builds on the FSC's existing cyber-resilience policy; the October document states that it does not replace existing law, supervisory rules, outsourcing management or internal controls.

## Documents (6)

- Oct 13, 2026 — [Taiwan FSC Agentic AI Security Consultation](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-fsc-agentic-ai-security-2026): Consultation Document on the Security of Agentic AI in the Financial Industry (金融業運用代理AI安全諮詢文件) (Comment period open)
- Jul 14, 2026 — [Taiwan FSC AI Attack Recommendations](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-fsc-ai-attack-recommendations-2026): Challenges and Strategic Recommendations for the Financial Industry in Responding to AI Attacks (金融業應對AI攻擊的挑戰與策略建議) (Final)
- Jul 7, 2026 — [Taiwan AI Risk Taxonomy and Assessment Framework](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-moda-ai-risk-framework-2026): Artificial Intelligence Risk Taxonomy and Assessment Framework (Version 1.0) (In force)
- Jan 14, 2026 — [Taiwan AI Basic Act](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-ai-basic-act-2026): Artificial Intelligence Basic Act (人工智慧基本法) (In force)
- Jun 20, 2024 — [Taiwan FSC AI Guidelines](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-fsc-ai-guidelines-2024): Guidelines for Artificial Intelligence (AI) Applications in the Financial Industry (Final)
- Oct 17, 2023 — [Taiwan FSC AI Core Principles](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-fsc-ai-core-principles-2023): Core Principles and Policies for Artificial Intelligence (AI) Applications in the Financial Industry (Final)

## Timeline

- Jan 13, 2028 — [End of the two-year period for Taiwan's government to adapt existing laws to the AI Basic Act](https://www-api.moda.gov.tw/File/Get/moda/zh-tw/KXkO5R5KZEr5ZLK) — Article 18 gives the government two years from the Act's effective date to enact, amend or repeal laws and administrative measures that do not comply with it. The Ministry of Digital Affairs' October 2026 report to the Legislative Yuan puts the deadline at 13 January 2028 and says eight agencies, including the Financial Supervisory Commission, are expected to complete the risk framework's process by the end of 2026.
- Oct 13, 2026 — [Taiwan FSC Agentic AI Security Consultation](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-fsc-agentic-ai-security-2026): Taiwan FSC Agentic AI Security Consultation — Consultation Document on the Security of Agentic AI in the Financial Industry (金融業運用代理AI安全諮詢文件) — On 13 October 2026 Taiwan's Financial Supervisory Commission published a consultation document on the security of agentic AI in the financial industry (金融業運用代理AI安全諮詢文件) and took comments for 30 days, to 12 November 2026, on the government's public participation platform.
- Jul 14, 2026 — [Taiwan FSC AI Attack Recommendations](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-fsc-ai-attack-recommendations-2026): Taiwan FSC AI Attack Recommendations — Challenges and Strategic Recommendations for the Financial Industry in Responding to AI Attacks (金融業應對AI攻擊的挑戰與策略建議) — On 14 July 2026 Taiwan's Financial Supervisory Commission published recommendations on how financial institutions should prepare for attacks enabled by frontier AI models, in a paper dated 13 July 2026 (金融業應對AI攻擊的挑戰與策略建議).
- Jul 7, 2026 — [Taiwan AI Risk Taxonomy and Assessment Framework](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-moda-ai-risk-framework-2026): Taiwan AI Risk Taxonomy and Assessment Framework — Artificial Intelligence Risk Taxonomy and Assessment Framework (Version 1.0) — Taiwan's Ministry of Digital Affairs issued Version 1.0 of the Artificial Intelligence Risk Taxonomy and Assessment Framework on 7 July 2026, effective the same day, under Article 16 of the AI Basic Act.
- Jun 23, 2026 — [National AI Strategic Committee holds its first meeting](https://www.ey.gov.tw/Page/9277F759E41CCD91/e7954aaa-25ce-4b85-9747-f70d06da9ef5) — Premier Cho Jung-tai chaired the first meeting of the committee that the Executive Yuan set up under Article 6 of the AI Basic Act to coordinate national AI affairs. The meeting approved the draft National AI Development Guidelines in principle, subject to revisions and Executive Yuan approval.
- Jan 14, 2026 — [Taiwan AI Basic Act](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-ai-basic-act-2026): Taiwan AI Basic Act — Artificial Intelligence Basic Act (人工智慧基本法) — Taiwan's Artificial Intelligence Basic Act was passed by the Legislative Yuan on 23 December 2025 and promulgated on 14 January 2026, which under Article 20 is also the date it takes effect.
- Dec 23, 2025 — [Legislative Yuan passes the Artificial Intelligence Basic Act in third reading](https://moda.gov.tw/en/press/press-releases/18316) — The Legislative Yuan passed the Act on 23 December 2025; the President promulgated it on 14 January 2026. The Ministry of Digital Affairs' English press release calls it the Artificial Intelligence Fundamental Act; the official English title in the Laws and Regulations Database is Artificial Intelligence Basic Act.
- Jun 20, 2024 — [Taiwan FSC AI Guidelines](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-fsc-ai-guidelines-2024): Taiwan FSC AI Guidelines — Guidelines for Artificial Intelligence (AI) Applications in the Financial Industry — Taiwan's Financial Supervisory Commission published the Guidelines for AI Applications in the Financial Industry on 20 June 2024.
- Oct 17, 2023 — [Taiwan FSC AI Core Principles](https://www.bankingnewsai.com/ai-regulation/documents/taiwan-fsc-ai-core-principles-2023): Taiwan FSC AI Core Principles — Core Principles and Policies for Artificial Intelligence (AI) Applications in the Financial Industry — Taiwan's Financial Supervisory Commission published the Core Principles and Policies for AI Applications in the Financial Industry on 17 October 2023.

## What to watch next

- The FSC's response to the agentic AI security consultation, whose comment period ran to 12 November 2026: the FSC says the comments will inform later policy, guidance and supervisory communication.
- Risk-based management rules for financial-sector AI under Article 16 of the AI Basic Act, and whether the 2024 Guidelines are revised or replaced: the Ministry of Digital Affairs expects the FSC and seven other agencies to complete the risk framework's process by the end of 2026 and a first round of law adaptation across ministries by June 2027, and the Act's two-year adaptation period ends on 13 January 2028.
- Any FSC determination that a financial-sector AI use is high-risk, which would bring in the warning-label, liability and relief provisions of Articles 5 and 17 of the Act.
- Executive Yuan approval and issue of the National AI Development Guidelines, approved in principle by the National AI Strategic Committee on 23 June 2026, and the Ministry of Digital Affairs' periodic review of the risk types in its framework.
- Follow-up to the FSC's July 2026 recommendations on frontier-AI attack risk, whose direction the FSC says it will keep under rolling review.

## FAQ

### Does Taiwan have an AI law that applies to banks?

Taiwan has a national AI law, the Artificial Intelligence Basic Act, promulgated on 14 January 2026, but it is a framework statute whose 20 articles place duties on the government rather than on companies. For banks the operative text is still the FSC's Guidelines for AI Applications in the Financial Industry of 20 June 2024, which are administrative guidance and non-binding. Under Article 16 of the Act the FSC, as the competent authority for the financial industry, is to set risk-based management rules where needed, following the Ministry of Digital Affairs' risk framework of 7 July 2026.

### Are the Taiwan FSC AI Guidelines binding?

No. The Guidelines state that they are 'administrative and non-binding in nature'. Institutions may choose risk-mitigation measures suited to their own risks, and industry associations may build the Guidelines into self-regulatory rules. The FSC's 2023 policy paper adds that it may conduct special financial examinations where necessary to check how institutions manage risk in their use of AI.

### What has Taiwan's FSC said about agentic AI?

On 13 October 2026 the FSC published a consultation document on the security of agentic AI in the financial industry and took comments for 30 days, to 12 November 2026. It proposes managing agents by use case, a four-level (L1 to L4) risk classification based on data sensitivity, action impact and capability boundary, and zero-trust controls that treat an agent as a non-human identity. The FSC says the document does not replace existing laws, supervisory rules, outsourcing requirements or internal controls.

### Do the FSC AI Guidelines cover foreign bank branches in Taiwan?

A footnote to the Guidelines' preface says that if branch offices of foreign groups in Taiwan are provided with AI applications by the group, 'they may be processed in accordance with group regulations'. Otherwise the Guidelines address the institution types the FSC supervises, banks included.

Related authorities: [Japan FSA](https://www.bankingnewsai.com/ai-regulation/japan-fsa), [HKMA](https://www.bankingnewsai.com/ai-regulation/hkma), [MAS](https://www.bankingnewsai.com/ai-regulation/mas), [FSB](https://www.bankingnewsai.com/ai-regulation/fsb).

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