TAIWAN Trends and Developments Contributed by: Jaclyn Tsai, Teresa Huang, Jaime Cheng and Lilian Hsu, Lee, Tsai & Partners
• Collaborating with law enforcement agencies to establish a joint defence reporting system, placing reported funds or virtual assets under freeze, and continuously monitoring them. • Under specific conditions, returning remaining funds or virtual assets in accounts with sus - pended transaction functions to the victims. (2) Telecommunications businesses The NCC is the governing authority, and tel - ecommunications businesses (eg, Chunghwa Telecom) must comply with the following key anti-fraud obligations: • When notified by law enforcement agencies that a user is suspected of engaging in fraud - ulent activities via their telecommunications services, they must verify and re-register the user’s information within a specified period. If (a) the user refuses to co-operate with the verification, (b) the verification reveals dis - crepancies between the user information and the person actually verified, or (c) the user is identified by law enforcement agencies as engaging in fraudulent activities via telecom - munications services, the telecommunica - tions businesses must restrict or discontinue those services. • Before providing specific international roam - ing services, where technically feasible, the telecommunications businesses must verify the user’s entry record. If no entry record is found, international roaming services cannot be provided. (3) Digital economy industries The MODA is the governing authority, and digi - tal economy industries subject to fraud preven - tion obligations under the FCHPA include online advertising platforms operators, third-party pay - ment service providers, e-commerce companies
and online gaming operators. Key obligations are as follows: • Online advertising platforms operators (eg, Google, LINE, Meta, TikTok): Specific online advertising platform operators must take nec - essary measures to prevent advertisements containing fraudulent content. Upon discov - ering or being notified by the authorities that their advertisements are fraudulent or clearly involve fraud, they must proactively or upon notification remove, restrict the browsing of or stop broadcasting such advertisements or adopt other necessary actions. Addition - ally, they must provide information about the advertising commissioners and funders to the competent authority. Foreign online advertis - ing platform operators and their representa - tives without a business venue or residence and without a branch office in Taiwan must appoint a legal representative in Taiwan and report relevant information to the MODA. • Third-party payment service providers: These providers must establish internal anti-fraud measures. For customers suspected of fraud, they must strengthen identity verification pro - cesses, and subsequent measures such as continuous identity review, delaying disburse - ment or refusing to establish a business rela - tionship may be taken. In addition, all relevant records should be kept. • E-commerce companies and online gaming operators: These entities must co-operate with law enforcement agencies to address suspected fraud cases, including suspending services for user accounts involved in fraud for a reasonable period. III. Other Measures to Address Fraud and Money Laundering Issues Due to the vast and complex nature of fraud and money laundering issues in the digital era,
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