Financial Crime World

Taiwan Takes Step Forward in Anti-Corruption Efforts with Implementation of United Nations Convention against Corruption

Introduction

Despite not being a member of the OECD Anti-Bribery Convention, Taiwan has made significant strides in combating corruption by enacting the Act to Implement the United Nations Convention against Corruption on May 20, 2015.

Corporate Liability for Criminal Conduct

Taiwan’s criminal law focuses on individual liability for criminal activities. However, recent legislation has introduced provisions that hold corporations liable for their employees’ and representatives’ criminal conduct. This includes fines under laws such as:

  • Banking Act
  • Money Laundering Control Act
  • Government Procurement Act

Civil Law and Administrative Liability

Under civil law, companies can be held jointly liable for acts of their representatives, but only if those acts were committed while performing duties on behalf of the company. Administrative law also holds corporations accountable if they show intention or negligence in a violation.

Punishment of Individuals Involved in Corruption

Individuals involved in corruption are punishable under various criminal provisions, including:

  • Article 342 of the Criminal Code
  • Article 125-2 of the Banking Act

Facilitation payments are not allowed, and there is no legal regulation on accepting or giving gifts.

Prohibition of Bribes to Foreign Government Officials

Bribes to foreign government officials are prohibited under Article 11, Paragraph 3 of the Anti-Corruption Act. Taiwanese citizens committing crimes abroad may still face criminal liabilities under Taiwan’s Criminal Code.

Asset Confiscation and Deferred Prosecution

The court may confiscate a company’s assets if they are proceeds from criminal activities, as stated in:

  • Article 38-1 of the Criminal Code
  • Article 18 of the Money Laundering Control Act

Deferred prosecution or non-prosecution agreements are not available. However, defendants accused of corruption crimes may receive advantages in sentencing for confessing to courts or law enforcement officials during investigations.

Liability for Acts of Representatives and Employees

Companies can be liable for acts of their representatives or employees under criminal and civil law. However, there is no liability for the acts of intermediaries or third parties unless they are company representatives or employees.

Public Company Requirements

Public companies, securities exchanges, and/or securities firms are required to establish financial and operational internal control systems under Article 14-1 of the Securities and Exchange Act. Having a compliance program can be a defense or mitigating factor while reviewing sanctions.

National Integrity Building Action Plan

The National Integrity Building Action Plan issued by Taiwan’s Ministry of Justice provides guidelines on implementing anti-corruption laws and policies. The plan emphasizes the importance of enhancing anti-corruption efforts at all levels of government institutions and agencies.

About the Author

This article was written by Brian Hsiang-Yang Hsieh, a contributor to Formosa Transnational.