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Taiwan’s executive authority has unveiled new compliance requirements aimed at combating fraud crimes across financial, telecommunications and online platforms in a bid to bolster consumer protection.
Taiwan has joined a host of other jurisdictions currently overhauling their approach to fraud, with new rules hitting a variety of financial services providers operating in the country.
The government on Thursday (May 9) approved two draft bills: one focused on fraud crime harm prevention; and the other on the use and oversight of science and technology in investigations.
It also proposed amendments to the Communication Security and Surveillance Act and the Money Laundering Control Act. The four proposals will now be submitted to the legislature for deliberation.
The country’s Financial Services Commission (FSC) is set to lead the charge in implementing and overseeing the enforcement of these regulations under the government's “New Generation Anti-Fraud Strategy Action Plan”.
Through this legislation, financial institutions and entities offering virtual asset services will now be subjected to enhanced fraud prevention measures, ushering in a more comprehensive network to reinforce the integrity of financial transactions.
The ordinance encompasses stringent management protocols covering deposit accounts, electronic payments, credit cards and crypto-assets, which the government says leaves no room for potential vulnerabilities.
One of the significant provisions of the new law is the establishment of mechanisms for peer notification and reporting, by which financial institutions are mandated to promptly alert judicial authorities of any suspicious activities involving accounts potentially linked to fraudulent schemes.
Moreover, the legislation underscores the role of corporate social responsibility by delineating fraud prevention obligations for various stakeholders, including financial institutions, telecommunications operators and online advertising platforms.
This element echoes work in other countries such as Singapore, which is set to finalise and fully operationalise its Shared Responsibility Framework later this year.
Meanwhile, in a bid to incentivise compliance, businesses adhering to anti-fraud measures outlined in the special law will be absolved of confidentiality obligations and exempt from liability for damages caused to customers or third parties.
Speaking after the agreement was made, Premier Chen Chien-jen said in a press statement that after a consultation process encompassing a broad range of sectors and stakeholders, the government tailored the bills to Taiwan's specific situation and requirements. He said they would remedy shortcomings in existing laws and regulations, and place the nation at the forefront of the international community's efforts to combat fraud.
