Combating Money Laundering in Taiwan
Court Freezes Transactions to Prevent Disappearance
In a bid to combat money laundering, Taiwan’s prosecutors may request the court to freeze specific transactions suspected of being linked to criminal activities. This move aims to prevent the disappearance of illicit funds and ensure that they are available for trial.
According to Article 9 of the Anti-Money Laundering Act, if there is probable cause to believe that property or property interests obtained through criminal activity may disappear under exigent circumstances, prosecutors can freeze the transaction without court approval. However, this hold must be lifted within three days if the prosecutor fails to obtain court approval.
- The court has discretion to order a financial institution to freeze an individual’s money laundering transactions for purposes of withdrawal, transfer, payment, delivery, assignment or other related property disposition.
- The order must be in writing and meet specific requirements set forth in Article 128 of the Criminal Procedure Code.
Confiscation of Illicit Funds
Article 14 of the Act states that property or property interests obtained through criminal activity shall be confiscated, regardless of whether they belong to the offender or not. The seized assets can be distributed among government agencies assisting in the investigation and prosecution of money laundering cases for official use.
- The Ministry of Justice may also distribute confiscated assets to foreign governments, institutions or international organizations which have entered into treaties or agreements with Taiwan to assist in confiscating illicit funds obtained through criminal activity.
International Cooperation
Article 16 of the Act allows the government of Chinese Taipei to enter into cooperative treaties or other international written agreements with foreign governments, institutions or international organizations to prevent and eradicate international money laundering activities. The provision of information, including declarations or reporting and investigation results, can be made based on the principle of reciprocity.
- The Anti-Money Laundering Act came into effect upon promulgation and aims to strengthen Taiwan’s efforts in combating money laundering and related financial crimes.