EY welcomes LY’s passage of additional fraud-fighting regulations

2024/07/22

The Executive Yuan welcomed the Legislative Yuan’s continued efforts to tackle fraud following the body’s passage of draft amendments to the Money Laundering Control Act and the Code of Criminal Procedure July 16 in Taipei City.
 
According to EY Spokesperson Chen Shih-kai, the updated act strengthens the surveillance of virtual asset services, including non-fungible tokens. Criminal liability will be imposed on any person or enterprise that provides virtual asset services without completing money laundering prevention registration, he said, adding that this also applies to overseas-based entities that offer relevant services locally without obtaining authorization to establish a company or branch office and completing the same registration.
 
Third-party payment services are also addressed by the act amendments, with different penalties incurred depending on whether the proceeds of money laundering exceed NT$100 million (US$30.5 million), Chen said.
 
Amendments to the criminal code focus on the investigatory authority of prosecutors, Chen said. The finalized bill will lay out a legal avenue for investigators to access data from international mobile subscriber identity-catchers, GPS trackers and thermal imaging cameras, he added.
 
In response to the new antifraud regulations, the Ministry of Digital Affairs hosted a discussion with the Taiwan Telecommunication Industry Development Association July 18 in Taipei. During the event, the ministry broke down the higher fines for third-party payment service providers who fail to implement internal control and audit systems, confirm customer identities and report suspicious transactions, adding that they will be punished on a case-by-case basis.
 
The MODA additionally proposed relevant measures for a fraud prevention draft bill passed by the LY July 12, including rules to target operators of e-commerce sites, online games and advertising platforms, as well as third-party payment services. Operators must cooperate with authorities in disclosing necessary information and removing fraudulent advertisements and messages under a safe harbor clause, the ministry said, adding that the fine for violating such obligations is up to NT$100 million.
 
MODA Minister Huang Yennun additionally announced during the event that an antifraud inquiry and report network will be launched at the end of August to further combat fraud and create a safer digital environment. 


Source: Taiwan Today (https://taiwantoday.tw/index.php)