Legislative Yuan passes law amendments to increase fraud penalties

Taipei, Dec. 30 (CNA) Taiwan's Legislature on Tuesday passed amendments to a law increasing penalties for fraud while offering sentence reductions for offenders who surrender and fully compensate victims.

Under the amended Fraud Crime Hazard Prevention Act, judicial and prosecutorial authorities are authorized to notify financial institutions and virtual asset service providers to flag bank accounts, e-payment accounts, credit cards and virtual asset accounts suspected of being linked to fraud, and to suspend related transactions temporarily.

The amendments also lower the threshold for high-value fraud from NT$5 million (US$159,294) to NT$1 million. Fraud involving NT$1 million or more now carries prison terms of three to 10 years and fines of up to NT$30 million.

Additional penalty tiers apply to larger cases. Offenders who swindle more than NT$10 million face five to 12 years in prison and fines of up to NT$300 million, while fraud involving more than NT$100 million carries a minimum sentence of seven years and fines of up to NT$500 million.

Citing a rise in cases in which fraud syndicates recruit minors under 18 and elderly people, the amendments stipulate that anyone who instigates, assists or collaborates with these groups will face a 50 percent increase in their sentence.

To speed up compensation for victims, the law allows courts to reduce or waive sentences for offenders who turn themselves in and fully compensate victims within six months of surrender, based on amounts agreed by both sides.

The amendments also introduce a "luxury ban" clause targeting high-profile fraud cases. Courts may take into account extravagant or wasteful spending, such as purchasing luxury homes or vehicles, if it occurs before victims are fully compensated or settlement amounts are paid.

The Legislature also passed a supplementary resolution urging the Ministry of Digital Affairs to strengthen oversight of online advertising platforms, enhance disclosure requirements in line with international practices, and establish local customer service mechanisms to help prevent fraud.