Article Content
Chapter 4 Joint Defense Reporting System and Earmarking of Funds
Section 1 Deposit Accounts
| Article 27 | When a deposit account is reported as a watch-listed account, the deposit business institution, in addition to verifying the source of the notification, shall classify it as a watch-listed account and immediately review the related transactions of the account. If the deposit business institution finds that funds reported as fraudulent have been remitted to another deposit account or an e-payment account, it shall notify the receiving deposit business institution or electronic payment institution of the remitted amount.
The receiving deposit business institution shall immediately review the transactions of the recipient account after receiving a notification made by the previous institution in accordance with the preceding paragraph. If the funds reported as fraudulent have been remitted to another account, the deposit business institution shall notify the next receiving deposit business institution or electronic payment institution of the outward transfer information.
If the receiving deposit business institution discovers that the funds reported as fraudulent have been withdrawn, it shall notify the judicial police authority that reported the watch-listed deposit account.
The original judicial police authority that reported the watch-listed deposit account shall verify the information listed in the preceding paragraph. If the original judicial police authority believes the receiving account shall also be classified as a watch-listed account, it shall notify the relevant deposit business institution to classify such account as a watch-listed account. |
| Article 28 | When a victim of fraud visits an deposit business institution during its business hours to report that he or she has been defrauded, the deposit business institution shall confirm his or her identity, remittance or transfer information, and the reason for the fraud. The victim shall then be asked to fill out an affidavit and call the 165 hotline.
The deposit business institution shall notify the receiving deposit business institution or electronic payment institution based on the affidavit and remittance or transfer information in the preceding paragraph. The inquiry and notification procedures in the preceding article shall apply mutatis mutandis if the receiving deposit business institution receives a notification from the previous deposit business institution or electronic payment institution.
If a fraud victim visits a deposit business institution in person to inform the institution of the fraud, in accordance with Paragraph 1, the police authority shall send an officer to the deposit business institution within two hours to process the victim’s report, if necessary, classify the deposit account as watch-listed.
After receiving the notification from the police authority in the preceding paragraph, the deposit business institution shall process the notification in accordance with the inquiry and notification procedures in the preceding article. |
| Article 29 | The contents of the joint defense notifications in the preceding two articles shall be registered in the manner prescribed by the authority responsible for sending the watch-listed deposit account notification.
The contents of the joint defense notification, format of the notification form and the affidavit, and other detailed items for the notifications shall be formulated by the Bankers Association of the Republic of China and reported to the competent authority for recordation. |
| Article 30 | After a deposit business institution receives a notification from the previous deposit business institution or electronic payment institution under Article 27 or 28, it shall earmark the amount received based on the notification. If the account balance is less than the notified amount, the institution shall seize the current account balance. The amount of deposits earmarked by each deposit business institution for the same notification shall be capped at the amount of the fraudulent funds specified in the notification from the judicial police authority that provided the original notification for the deposit account or the amount of the fraudulent funds specified by the victim in his/her affidavit.
The receiving deposit business institution shall notify the judicial police authority that reported the watch-listed deposit account of the results of the earmarking.
After receiving the notification in the preceding paragraph, the judicial police authority that reported the watch-listed deposit account shall verify the results as soon as possible and notify the deposit business institution within forty-eight hours from the time of the earmarking regarding whether the deposit account with the earmarked amount should be classified as watch-listed or if the earmarking should be released.
If the depository business institution does not receive a notification within the period specified in the preceding paragraph regarding the deposit account with the earmarked amountshould be classified as watch-listed, it shall release the earmarking.
The deposit business institution may release the earmarked funds in advance if it determines, after careful verification, that there is no illegal or abnormal circumstance in the deposit account specified in the earmarking notification.
The deposit business institution shall continuously monitor the deposit accounts with earmarked amounts, and if it determines that the account is an abnormal deposit account suspected of involvement in fraud, it may process the account in accordance with Paragraph 1, Article 8 of the Act. |
| Article 31 | If the fund in a deposit account has been seized, preserved, prohibited, or subjected to similar measures under another law, and the deposit business institution subsequently receives a notification for the earmarking of proceeds of fraud in the deposit account, the deposit business institution shall still be required to earmark the proceeds of fraud, but priority shall be given to the order for the seizure, preservation, prohibition, or similar sanction for such funds. |
| Article 32 | Deposit business institutions should, to the extent possible, set up a dedicated 24-hour joint defense notification contact window to carry out the joint defense notification mechanisms.
Deposit business institutions shall immediately notify Financial Information Service Co., Ltd. when they set up the contact window in the preceding paragraph, and the same applies when the contact window is changed. |
| Article 33 | If the account holder of a deposit account with seized funds has any doubts regarding the seizure of his/her funds, he/she should contact the judicial police authority that reported the watch-listed deposit account to process the request. The deposit business institution shall also provide assistance where necessary.
If a deposit business institution conducts joint defense operations but no facts of fraud are found in subsequent investigations and the customer's rights and interests are damaged due to the deposit business institution's joint defense notification or the earmarking of funds results in a dishonored check, the deposit business institution shall assist in applying to the Taiwan Clearing House for the cancellation of dishonored check records or take other remedial measures. |
Section 2 Electronic Payment Accounts
| Article 34 | When an electronic payment account is reported as a watch-listed account, the electronic payment institution, in addition to verifying the source of the notification, shall classify it as a watch-listed account, shall immediately review the related transactions of the account. If the electronic payment institution finds that funds reported as fraudulent have been remitted to another deposit account or an e-payment account, the electronic payment institution shall notify the receiving deposit business institution or electronic payment institution of the remitted amount.
The receiving electronic payment institution shall immediately review the transactions of the recipient account after receiving a notification made by the previous institution in accordance with the preceding paragraph. If the funds reported as fraudulent have been remitted to another account, the electronic payment institution shall notify the receiving deposit business institution or electronic payment institution of the outward transfer information. If the funds are not remitted to an external account, it shall notify the judicial police authority that reported the watch-listed deposit account.
The original judicial police authority that reported the watch-listed electronic payment account shall verify the information listed in the preceding paragraph. If the original judicial police authority believes the receiving account shall also be classified as a watch-listed electronic payment account, it shall notify the relevant electronic payment institution to classify such account as a watch-listed account. |
| Article 35 | When a victim of fraud visits an electronic payment institution to report that he or she has been defrauded, the electronic payment institution shall confirm his or her identity, certification of electronic payment account transactions, and the reason for the fraud. The victim shall then be asked to fill out an affidavit and call the 165 hotline. When a victim of fraud calls the customer service of an electronic payment institution to report a fraud, the electronic payment institution shall refer the victim to the 165 hotline.
The electronic payment institution shall notify the receiving deposit business institution or electronic payment institution based on the affidavit and the electronic payment account transaction certification in the preceding paragraph. The inquiry and notification procedures in the preceding article shall apply mutatis mutandis if the receiving electronic payment institution receives a notification from the previous deposit business institution or electronic payment institution.
If a fraud victim visits an electronic payment institution in person to inform the institution of the fraud, the police authority shall send an officer to the electronic payment institution within two hours to process victim’s report, if necessary, classify the electronic payment account as watch-listed.
After receiving the notification from the police authority in the preceding paragraph, the electronic payment institution shall process the notification in accordance with the inquiry and notification procedures in the preceding article. |
| Article 36 | The contents of the joint defense notifications in the preceding two articles shall be registered in the manner prescribed by the authority responsible for sending the watch-listed electronic payment account notification.
The contents of the joint defense notification, format of the notification form and the affidavit, and other detailed items for the notifications shall be formulated by the Bankers Association of the Republic of China and reported to the competent authority for recordation. |
| Article 37 | After an electronic payment institution receives a notification from the previous deposit business institution or electronic payment institution under Article 34 or 35, it shall earmark the amount received based on the notification. If the account balance is less than the notified amount, the institution shall seize the current account balance. The amount of deposits earmarked by each electronic payment institution for the same notification shall be capped at the amount of the fraudulent funds specified in the notification from the judicial police authority that provided the original notification for the electronic payment account or the amount of the fraudulent funds specified by the victim in his/her affidavit.
The receiving electronic payment institution shall notify the judicial police authority that reported the watch-listed electronic payment account of the results of the earmarking.
After receiving the notification in the preceding paragraph, the judicial police authority that reported the watch-listed electronic payment account shall verify the results as soon as possible and notify the electronic payment institution within forty-eight hours from the time of the earmarking regarding whether the electronic payment account with the earmarked amount should be classified as watch-listed or if the earmarking should be released.
If the electronic payment institution does not receive a notification for classifying the electronic payment account as watch-listed within the period specified in the preceding paragraph, the electronic payment institution shall release the earmarking.
The electronic payment institution may release the earmarked funds in advance if it determines, after careful verification, that there is no illegal or abnormal circumstance in the electronic payment account specified in the earmarking notification.
The electronic payment institution shall continuously monitor the electronic payment accounts with earmarked amounts, and if it determines that the account is an abnormal electronic payment account suspected of involvement in fraud, it may process the account in accordance with Paragraph 1, Article 8 of the Act. |
| Article 38 | If the fund in an electronic payment account has been seized, preserved, prohibited, or subjected to similar measures under another law, and the electronic payment institution subsequently receives a notification for the earmarking of proceeds of fraud in the electronic payment account, the electronic payment institution shall still be required to earmark the proceeds of fraud, but priority shall be given to the order for the seizure, preservation, prohibition, or similar sanction for such funds. |
| Article 39 | Electronic payment institutions should, to the extent possible, set up a dedicated 24-hour joint defense notification contact window to carry out the joint defense notification mechanisms.
Electronic payment institutions shall immediately notify Financial Information Service Co., Ltd. when they set up the contact window in the preceding paragraph, and the same applies when the contact window is changed. |
| Article 40 | If the user of an electronic payment account with seized funds has any doubts regarding the seizure of his/her funds, he/she should contact the judicial police authority that reported the watch-listed electronic payment account to process the request. The electronic payment institution shall also provide assistance where necessary. |
Section 3 Credit Cards
| Article 41 | Where a credit card settlement number is reported as a watch-listed credit card settlement number, the card issuer shall immediately suspend all transaction functions of the credit card and disable the payment functions for automatic payment channels. This restriction does not apply if the card issuer verifies that payment is made by the cardholder.
If the card issuer finds that funds reported as fraudulent have been remitted to another deposit account or an e-payment account of the account owner, the deposit business institution shall notify the next receiving deposit business institution or electronic payment institution as well as the judicial police authority that reported the credit card settlement number as watch-listed. |
| Article 42 | When a victim of fraud calls the customer service of a card issuer to report a fraud, the card issuer shall refer the victim to the 165 hotline.
When a victim of fraud visits a card issuer during its business hours to report that he or she has been defrauded, the card issuer shall confirm his or her identity, remittance or transfer information, and the reason for the fraud, and call the 165 hotline. The police authority shall send an officer to card-issuer within two hours to accept the case report from the victim and, if necessary, classify the credit card settlement number as watch-listed.
After receiving the notification from the police authority in the preceding paragraph, the card issuer shall process the notification in accordance with the inquiry and notification procedures in the preceding article. |
| Article 43 | The contents of the joint defense notifications in the preceding two articles shall be registered in the manner prescribed by the authority responsible for sending the watch-listed credit card settlement number notification.
The contents and format of the joint defense notification and other detailed items for the notifications shall be formulated by the Bankers Association of the Republic of China and reported to the competent authority for recordation. |
| Article 44 | The card issuers should, to the extent possible, set up a dedicated 24-hour joint defense notification contact window to carry out the joint defense notification mechanisms.
The card issuers shall immediately notify Financial Information Service Co., Ltd. when they set up the contact window in the preceding paragraph, and the same applies when the contact window is changed. |
Section 4 Virtual Asset Accounts
| Article 45 | For a virtual asset account reported as a watch-listed virtual asset account, the virtual asset service provider shall verify the source of the report, classify it as a watch-listed virtual asset account, and immediately investigate related transactions of the account. If the virtual asset service provider finds that fraudulent virtual assets reported have been remitted to another virtual asset service provider, it shall notify the receiving virtual asset service provider of the remitted virtual assets.
The receiving virtual asset service provider shall immediately investigate the transactions of the recipient account after receiving the notification made by the previous virtual asset service provider in accordance with the preceding paragraph. If the virtual assets have been remitted to another account, the virtual asset service provider shall notify the next receiving virtual asset service provider of the outward transfer information.
If the receiving virtual asset service provider finds that fraudulent virtual assets reported have been withdrawn or remitted to an offshore virtual asset account, it shall notify the judicial police authority that reported the watch-listed virtual asset account.
The original judicial police authority that reported the watch-listed virtual asset account shall verify the information listed in the preceding paragraph. If the original judicial police authority believes the receiving virtual asset account shall also be classified as a watch-listed virtual asset account, it shall notify the relevant virtual asset service provider to classify such account as a watch-listed account. |
| Article 46 | When a victim of fraud visits a virtual asset service provider during its business hours to report that he or she has been defrauded, the virtual asset service provider shall confirm his or her identity, the transfer of virtual assets or funds, remittance or transfer information, and the reason for the fraud. The victim shall then be asked to fill out an affidavit and call the 165 hotline. When a victim of fraud calls the customer service of a virtual asset service provider to report a fraud, the virtual asset service provider shall refer the victim to the 165 hotline.
The virtual asset service provider shall notify the receiving virtual asset service provider based on the affidavit and remittance or transfer information in the preceding paragraph. The inquiry and notification procedures in the preceding article apply mutatis mutandis to the notifications received by the virtual asset service provider of the recipient account from the previous virtual asset service provider.
If a fraud victim visits a virtual asset service provider in person to inform the service provider of the fraud, in accordance with Paragraph 1, the police authority shall send an officer to the virtual asset service provider within two hours to process the victim’s report and, if necessary, classify the virtual asset account as watch-listed.
After receiving the notification from the police authority in the preceding paragraph, the virtual asset service provider shall process the notification in accordance with the inquiry and notification procedures in the preceding article. |
| Article 47 | The contents of the joint defense notifications in the preceding two articles shall be registered in the manner prescribed by the authority responsible for sending the watch-listed virtual asset account notification.
The contents of the joint defense notification, format of the notification form and the affidavit, and other detailed items for the notifications shall be formulated by the Taiwan Virtual Asset Service Provider Association and reported to the competent authority for recordation. |
| Article 48 | After a virtual asset service provider receives a notification from the virtual asset service provider in accordance with Article 45 or 46, it shall earmark an amount based on the virtual assets or funds specified in the notification. If the account balance is less than the notified amount, the current balance of virtual assets or funds in the account shall be earmarked. The amount of virtual assets or funds earmarked by each virtual asset service provider for the same notification shall be capped at the amount of the fraudulent funds specified in the notification from the judicial police authority that provided the original notification for the virtual asset account or the amount of the fraudulent virtual assets or funds specified by the victim in his/her affidavit.
The virtual asset service provider shall notify the judicial police authority that reported the watch-listed virtual asset account of the results of the earmarking.
After receiving the notification in the preceding paragraph, the judicial police authority that reported the watch-listed virtual asset account shall verify the results as soon as possible and notify the virtual asset service provider within forty-eight hours from the time of the earmarking regarding whether the virtual asset account with the earmarked amount should be classified as watch-listed or if the earmarking should be released.
If the virtual asset service provider does not receive a notification for classifying the virtual asset account with the earmarked virtual assets or funds as watch-listed within the period specified in the preceding paragraph, the virtual asset service provider shall release the earmarking.
The virtual asset service provider may release the earmarked virtual assets or funds in advance if it determines, after careful verification, that there is no illegal or abnormal circumstance in the virtual asset account specified in the earmarking notification.
The virtual asset service provider shall continuously monitor the virtual asset accounts with earmarked virtual assets or funds, and if it determines that the account is an abnormal virtual asset account suspected of involvement in fraud, it may process the account in accordance with Paragraph 1, Article 8 of the Act. |
| Article 49 | If the virtual assets or funds in a virtual asset account has been seized, preserved, prohibited, or subjected to similar measures under another law, and the virtual asset service provider subsequently receives a notification for the earmarking of proceeds of fraud in the deposit account, the virtual asset service provider shall still be required to earmark the proceeds of fraud in the form of virtual assets or funds, but priority shall be given to the order for the seizure, preservation, prohibition, or similar sanction for such virtual assets or funds. |
| Article 50 | Virtual asset service providers should, to the extent possible, set up a dedicated 24-hour joint defense notification contact window to carry out the joint defense notification mechanisms.
Virtual asset service providers shall immediately notify the Taiwan Virtual Asset Service Provider Association when they set up the contact window in the preceding paragraph, and the same applies when the contact window is changed. |
| Article 51 | If the customer of a virtual asset account with seized virtual assets or funds has any doubts regarding the seizure of his/her virtual assets or funds, the customer should contact the judicial police authority that reported the watch-listed virtual asset account to process the request. The virtual asset service provider shall also provide assistance where necessary. |