Financial Crime World

Court Order Not Issued: Money Laundering Probe Halted

A money laundering investigation has been brought to a standstill after prosecutors failed to apply for a court order within the three-day deadline.

Background

The case was being investigated under the country’s anti-money laundering laws, which prohibit the withdrawal, transfer, payment, delivery, and assignment of suspected illegal funds. According to sources close to the investigation, prosecutors had requested additional time to gather evidence, but the judge refused, citing the lack of a timely request for a court order.

Investigation Timeline

Under the law, if an extension is deemed necessary, prosecutors must apply within five days before the expiration of the period. However, the extension may not exceed six months, and only one extension will be granted at most.

Consequences

The investigation was launched after authorities received a tip-off about suspicious financial transactions. The case has sparked concerns about the potential laundering of illegal funds through local financial institutions.

  • Article 14 of the anti-money laundering law states that anyone involved in money laundering activities can be sentenced to imprisonment for up to seven years and fined up to NT$5 million.
  • Attempts to commit such offenses are also punishable.
  • Article 15-2 prohibits individuals from delivering or making available account information filed with financial institutions without justifiable reasons. Violators can face reprimand by police authorities or even imprisonment and fines if they repeat the offense within five years.

Guidance Needed

The Ministry of Justice has been urged to provide guidance on how to handle cases where account information is shared without authorization.

Additional Provisions

  • Article 16 states that representatives, agents, employees, or other employed personnel of legal persons who commit money laundering offenses while performing their duties will be punished and the legal person may also face fines.
  • The law provides for reduced punishment for offenders who confess during investigation or trial. Offenses committed outside Taiwan’s territory are also subject to prosecution under the country’s anti-money laundering laws.

Conclusion

The halt of the money laundering probe highlights the importance of timely applications for court orders and the need for guidance on handling unauthorized sharing of account information. As the law continues to evolve, it is crucial that authorities stay vigilant in combating money laundering activities and protecting the integrity of financial institutions.