The amount of fraud amounted to 0.9% of Taiwan’s GDP! Legislators approve system loopholes to create judicially certified "legal drivers"

In the face of rampant fraud, legislator Guo Guowen pointed out yesterday (25th) that the amount of fraud has reached 0.9% of Taiwan's GDP, of which investment fraud accounts for nearly 60%. Therefore, he questioned the chairman of the Financial Supervisory Commission on the issues of fraudulent cash flows and money laundering. Huang Tianmu.

Guo Guowen first took the case he received as an example. After receiving a remittance from the victim, a person's account claimed that he did not know why the money was sent to him. As a result, the investigation did not lead to prosecution, but the person could not get an indictment. to unfreeze the account and further embezzle the victim’s hard-earned money.

Guo Guowen criticized such loopholes as being equivalent to "legal drivers" certified by the judiciary. He proposed two major remedial measures. The first is that the Ministry of Justice instructs prosecutors to require the return of ill-gotten gains before imposing non-prosecution sanctions.

Second, Guo Guowen asked the Financial Supervisory Commission to amend the "Management Measures for Deposit Accounts and Suspected Illegal or Abnormal Transactions" and the prerequisite for unfreezing accounts is the return of ill-gotten gains. Huang Tianmu replied that the measures are currently being revised and this issue will be addressed.

Guo Guowen: We should proactively invite overseas businesses to settle in Taiwan

As for the issue of money laundering, Guo Guowen pointed out that the biggest loophole at present is cryptocurrency. Among them, overseas exchanges and OTC traders (over-the-counter trading operators) are loopholes in the current regulatory mechanism.

According to data from the Financial Supervisory Commission, none of the 25 companies that have passed the compliance statement are overseas exchanges. The National Police Agency of the Ministry of the Interior also stated that only Binance, an overseas exchange, cooperated with the investigation. Therefore, Guo Guowen requested that the Financial Supervisory Commission should Actively invite overseas businesses to set up shop in Taiwan and strengthen money laundering prevention.

🛎️Further reading: Cryptocurrency scams are prevalent! Only “Binance” among overseas exchanges cooperated with the police investigation, and the Ministry of Interior called for the establishment of special laws for supervision

In addition, regarding the issue of OTC merchants, Guo Guowen believes that the business of OTC merchants is relatively simple and should not be subject to the same set of supervision standards as exchanges with larger businesses. For example, Thailand currently has a hierarchical supervision mechanism, and Hong Kong’s recent legislation The proposal also points to moving towards hierarchical management and calls on the Financial Supervisory Commission to implement differentiated supervision by issuing separate licenses for exchanges and OTC traders.

Huang Tianmu responded that in the near future, individual currency dealers will be regulated through anti-fraud laws and anti-fraud laws. He also agreed that OTC and exchanges should be regulated differently, and will refer to the committee members’ suggestions in planning.

Review editor: Gao Jingyuan

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