Anti-fraud act clears legislative floor

Taipei, July 12 (CNA) Taiwan's Legislative Yuan passed an anti-fraud act on Friday increasing penalties for high-value crimes.

The new fraud crime prevention act stipulates that fraud resulting in illegal gains of NT$5 million (US$153,817) can lead to a maximum sentence of 10 years in prison, while gains of NT$100 million can result in a maximum of 12 years and a fine of up to NT$300 million.

The Cabinet approved the fraud crime prevention act and a draft technology investigation act, along with amendments to the Communication Security and Surveillance Act and the Money Laundering Control Act on May 9, subsequently sending them to the Legislature for review.

The newly passed act is designed to strengthen fraud prevention operations, combat fraud rings and protect victims, with fraud prevention measures in the financial, telecommunications and digital economy areas, according to the Legislative Yuan.

For financial fraud prevention measures, financial institutions are required to control and report suspicious deposits, electronic payments, credit cards, or virtual assets to law enforcement.

An inter-bank inquiry mechanism will verify suspicious transactions and block illegal funds early.

Upon notification, financial institutions must promptly return any remaining funds or virtual assets in suspended accounts to protect victims' rights. Financial institutions are exempt from confidentiality obligations and liability when executing these measures.

In terms of telecommunications fraud prevention measures, telecom companies must verify international roaming users are in Taiwan before providing services, in order to prevent fraud.

If users are absent or engage in abnormal activities, the service must be restricted or stopped. Non-compliant companies face fines of between NT$200,000 and NT$5 million, with severe cases resulting in fines of up to NT$20 million and restrictions on user number allocations.

In terms of digital economy fraud prevention measures, ads with fraudulent content are prohibited. Platforms must stop hosting known or reported fraudulent ads and provide related information to law enforcement.

Violations can result in fines of between NT$2.5 million and NT$100 million.

The act also includes a clause stipulating that offenders who voluntarily surrender and return all fraudulent gains may have their sentences reduced or voided, especially if their cooperation leads to the seizure of all fraudulent proceeds and the arrest of key perpetrators.

In addition, the Legislative Yuan passed a resolution urging the Cabinet to convene regular central fraud crime prevention report meetings at least once every four months, with the premier or vice premier serving as convenor.