UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01 Other Events.
On November 29, 2021, Law Insurance Broker Co., Ltd. (“Law Broker”), a wholly owned subsidiary of Law Enterprise Co. Ltd. (“Law Enterprise”) which in-turn is a majority-owned subsidiary of China United Insurance Services, Inc. (the “Company”), received a decision letter (the “Decision Letter”) dated November 25, 2021 from the Financial Supervisory Commission (Taiwan) (the “FSC”) stating that Law Broker was fined NTD 200,000 (equivalent to approximately $7,227 USD) (the “Fine”) and one month correction period (the “Correction Period,” collectively with the Fine, the “Penalty”) by the FSC for violating Article 163 Sections 4 and 8 of the Insurance Act of Taiwan (the “Act”) Taiwan and Section 23 of Article 49 of the Regulations Governing Insurance Brokers (the “Regulation”). The FSC found that one of Law Broker’s insurance agents, within a short period of time, solicited the same customer for insurance policies from different insurance companies but the financial information of the customer in such agent’s report was different. The insurance agent and Law Broker were not able to verify the reason behind such discrepancy.
Further, the FSC found that Law Broker’s current "Customer Risk Assessment Standards for Preventing Money Laundering and Combating Terrorism," underestimated customers’ risk levels and therefore such standards may have deficiency in screening the risks of money laundering or terrorism of potential insurance customers. Lastly, FSC also ruled that Law Broker has not enhanced its due diligence review on its high-risk customers.
The Company and Law Broker will pay the Fine in full on or prior to the prescribed due date according to the Decision Letter and are in the process of adjusting their business models to regain compliance with the Act and the Regulation.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CHINA UNITED INSURANCE SERVICE, INC. | |
| Date: December 3, 2021 | /s/ Yi-Hsiao Mao |
| Name: Yi-Hsiao Mao | |
| Title: Chief Executive Officer |