Cracking Down on Money Laundering: Taiwan’s New Regulations

Taipei, Taiwan - In an effort to combat money laundering and prevent the illegal transfer of funds, prosecutors in Taiwan are now required to act swiftly in cases involving money laundering. The new regulations aim to prevent suspects from using their ill-gotten gains to escape justice or flee the country.

Swift Action Required

According to the new regulations, if a prosecutor fails to obtain approval from the court within three days of freezing an offender’s assets, the hold must be removed. This ensures that suspects cannot use their illegal funds to evade justice or flee the country.

Judges’ Discretion

The regulations also give judges the discretion to order financial institutions to freeze money laundering transactions for purposes of withdrawal, transfer, payment, delivery, assignment, or other related property disposition. This allows for a more targeted approach in combating money laundering activities.

Confiscation and Distribution of Assets

In cases where a suspect is found guilty of money laundering, prosecutors can confiscate assets obtained through criminal activity and distribute them to government agencies involved in the investigation. Additionally, seized assets can be distributed to foreign governments or international organizations that have entered into treaties or agreements with Taiwan to combat money laundering.

Broader Effort

The new regulations are part of a broader effort by Taiwanese authorities to prevent and eradicate international money laundering activities, which can be used to fund terrorist organizations and other illegal activities.

Key Provisions

• Prosecutors must act within three days of freezing an offender’s assets or the hold will be removed.
• Judges have discretion to order financial institutions to freeze money laundering transactions.
• Confiscated assets can be distributed to government agencies involved in the investigation.
• Assets can also be distributed to foreign governments or international organizations that have entered into treaties or agreements with Taiwan to combat money laundering.

Penalties for Money Laundering

Criminal Penalties

• Offenders can face imprisonment of up to five years and fines of up to NT$3 million for engaging in money laundering activities.
• Government officials who reveal confidential information about suspected money laundering transactions can face imprisonment of up to three years.
• Employees of financial institutions who disclose confidential information can face imprisonment of up to two years or a fine of up to NT$500,000.

These new regulations demonstrate Taiwan’s commitment to combating money laundering and preventing illegal activities. By acting swiftly and taking targeted measures, Taiwanese authorities aim to prevent the misuse of funds and protect the integrity of their financial system.