Financial Crime World

Taiwan Amends Laws to Combat Rising Financial Crimes, Enhance Anti-Fraud Efforts

In an effort to tackle the growing menace of financial crimes in Taiwan, the government has recently amended five laws to strengthen its anti-fraud efforts. The latest developments aim to crack down on various forms of fraud and protect citizens’ property and assets from illegal activities.

Key Changes

The Executive Yuan approved a raft of legislation on May 9, 2024, which includes draft bills on:

  • Fraud Crime Harm Prevention: Aimed at addressing the ever-evolving nature of criminal fraud.
  • Use and Oversight of Science and Technology in Investigations: To improve investigative techniques and prevent fraudulent activities.
  • Complementary Amendments to the Communication Security and Surveillance Act: Strengthening communication security measures.
  • Money Laundering Control Act: Enhancing anti-money laundering efforts.

Anti-Fraud Initiatives

To identify fraudulent activities, the government has launched:

  • Educational Campaigns: Across all fields and industries, involving cooperation between central and local governments, as well as public and private sectors.
  • Anti-Fraud Concepts in Legal Education: To introduce students to anti-fraud principles from an early age.

Measures to Prevent Fraud

To prevent fraud, the government is promoting:

  • Digital Trust Technologies: The “111” SMS short code for official government messages.
  • E-commerce Security: Encouraging companies to strengthen data security and adopt technology that substitutes recipient phone numbers with proxy numbers.
  • Telecommunications Network Security: Blocking calls from overseas fraudsters and playing audio warnings when international calls are received.

Financial Institution Measures

Financial institutions will be encouraged to:

  • Ask Confirmation Questions: When customers conduct large in-person transactions.
  • Strengthen Anti-Fraud Measures: In applications for designated accounts for wire transfers.

Regulation of Virtual Asset Trading Platforms

The government plans to introduce gradual regulation of virtual asset trading platform operators and block investment-related advertisement scams from online platforms.

Online Game Controls

Online game companies will be required to establish internal control mechanisms to lock in-game credit purchases when suspicious activity is detected.

Punishing Fraudulent Activities

The government has established a Fraud and Cybersecurity Center with the following objectives:

  • Crack Down on Violent Gangs: Punish fraudulent groups and cut off illegal money flows.
  • Improve Confiscation of Criminal Proceeds: Restitution of stolen assets and assistance for fraud victims.

Conclusion

The government’s anti-fraud efforts aim to reduce exposure, deception, and harm caused by fraudulent activities, promoting a safer and more secure environment for citizens in Taiwan.