Financial Crime World

Money Laundering Crimes and Enforcement in Taiwan: A Look at the Legal Framework and Priorities

In the intricate world of finance, money laundering remains a substantial concern for authorities worldwide. Taiwan, officially known as the Republic of China (ROC), is no exception to this issue. This article provides a closer look at the key aspects of money laundering in Taiwan, including the legal landscape and enforcement efforts.

1. Prosecution and Predicate Offenses

In Taiwan, prosecutors, supported by the Ministry of Justice Investigation Bureau (MJIB), bear the responsibility for prosecuting money laundering cases at the national level.

1.2 Money Laundering Definition and Predicate Offenses

According to the Taiwan Money Laundering Control Act (AML), money laundering is defined as disguising, concealing, or transferring the proceeds of unlawful activities. Specific unlawful activities that qualify as money laundering predicate offenses include:

  • Crimes punishable by imprisonment for a term of six months or more
  • Various types of fraud
  • Offenses under the Securities and Exchange Act
  • Certain other laws

Tax evasion, a form of illegal activity under the Tax Collection Act, also qualifies as a money laundering predicate offense.

1.3 Extraterritorial Jurisdiction and Foreign Predicate Offenses

Taiwan laws cover money laundering activities involving Taiwanese citizens, regardless of their location. However, it appears that the Taiwan AML Act may not directly apply to money laundering of foreign proceeds from crimes not considered predicate offenses under Taiwanese law.

2. Government Agencies and Their Roles

1.4 Responsible Parties

Prosecutors are in charge of pursuing money laundering cases, with support from the MJIB and local police.

1.5 MJIB’s Role

The MJIB is tasked with researching AML strategies, analyzing suspicious transactions, liaising with international counterparts, and other related activities.

3. Liability and Penalties

1.6 Individual and Corporate Penalties

Individuals and corporations can be held liable for money laundering offenses under the AML Act. Penalties include imprisonment and fines.

1.7 Statute of Limitations

Money laundering cases must be prosecuted within twenty years, as per the Criminal Code.

4. Enforcement Priorities and Areas of Focus

4.1 New Challenges

The emergence of new payment methods like third-party payments and cryptocurrencies has necessitated the adaptation of anti-money laundering strategies by authorities and businesses. As a response, Taiwan has issued regulations to curb money laundering through these channels.

Conclusion

Taiwan’s legal framework for combating money laundering is extensive and multifaceted. With a dedicated team of prosecutors, investigators, and regulatory bodies, the country is working to maintain a robust defense against financial crimes. However, the ever-evolving nature of money laundering schemes necessitates ongoing diligence and agility in enforcing these laws for continued success.