Taiwan’s Flawed Financial Crime Investigation Techniques Under Scrutiny After Wang You-theng’s Death
The recent passing of Wang You-theng, the founder of Rebar Asia Pacific Group, has sparked a heated debate over Taiwan’s lenient treatment of financial criminals. Wang was accused of embezzling NT$32 billion (US$993 million) and fled to the United States several years ago before dying in a car crash last month.
Lenient Treatment of Financial Criminals
The case has highlighted the surprisingly “lenient” ways in which Taiwan’s judicial system treats financial crimes. The country’s strategy for fighting economic crime is often criticized as inadequate, with prosecutors struggling to retrieve stolen funds. In fact, defendants who have absconded with money are rarely held accountable, and the public only takes notice when the amount involved exceeds NT$10 billion.
Outdated Laws and Loopholes
Experts point out that Taiwan’s laws on confiscation are based on Qing Dynasty legislation from 1905, which is outdated and flawed. The conviction-based confiscation model allows illegally obtained assets to be confiscated as a form of punishment, but this approach has many loopholes. For instance:
- Shell companies, which are technically third parties, cannot be targeted for confiscation.
- Laws do not provide for independent confiscation orders when a suspect cannot be found, leaving authorities with limited options to retrieve stolen funds.
International Comparison
In contrast, North American and European countries have abandoned the conviction-based model in favor of non-conviction based confiscation (NCBC) models, which allow for the seizure of assets even if a defendant is not convicted.
Recent Legislative Efforts
The Legislative Yuan passed a bill last year aimed at addressing these issues by allowing for:
- Third-party confiscation
- Independent confiscation orders
- Other new measures
However, experts warn that the law will only be effective if legal practitioners are willing to adapt to the new approach and if related laws on detention and money laundering are also amended.
Questions about Taiwan’s Judicial System
The case has raised questions about whether Taiwan’s judicial system is equipped to handle complex financial crimes. The country’s reliance on outdated legislation has created a haven for financial criminals, and it remains to be seen whether the new law will be sufficient to address these issues.
In conclusion, Taiwan’s flawed financial crime investigation techniques are under scrutiny after Wang You-theng’s death. It is essential that the government addresses these issues by updating its laws and adapting to international best practices to ensure that financial criminals are held accountable for their actions.