| 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If the receiving deposit business institution discovers that the funds reported as fraudulent have been withdrawn, it shall notify the judicial police authority that reported the watch-listed deposit account.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. |