| Chapter 4 Joint Defense Reporting System and Earmarking of Funds |
Section 1 Deposit Accounts |
| Article 27 |
For a deposit account reported as a watch-listed account, the deposit business institution shall verify the source of the notification, classify it as a watch-listed account, and check related transactions of the account. If the deposit business institution finds that funds reported as fraudulent have been remitted to another deposit account, an electronic payment account, or a virtual asset account, the deposit business institution shall notify the receiving deposit business institution, electronic payment institution, or virtual asset service provider of the remittance of such amount.
The receiving deposit business institution shall immediately review the transactions of the recipient account after receiving a notification made by the previous receiving institution or the virtual asset service provider. If the funds reported as fraudulent have been remitted to another account, the deposit business institution shall notify the next receiving deposit business institution, electronic payment institution, or virtual asset service provider of the outward transfer information.
If the deposit business institution holding the trust deposit account linked to the virtual asset account finds that the funds reported as fraudulent have been remitted into a virtual account under such trust deposit account, it shall immediately notify the virtual asset service provider to investigate whether all or part of the funds reported as fraudulent remain in the virtual account. The virtual asset service provider shall report the inquiry results to the deposit business institution holding the trust deposit account. The deposit business institution shall report the inquiry results to the original judicial police authority that reported the watch-listed account.
If the recipient deposit business institution discovers that the funds reported as fraudulent have been withdrawn, it shall notify the original judicial police authority that reported the watch-listed deposit account.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 determines that the receiving account or virtual asset account shall also be classified as a watch-listed account, it shall notify the relevant deposit business institution, electronic payment institution, or virtual asset service provider to classify such account or account number as a watch-listed account. |
| Article 28 |
When a victim of fraud visits a 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 recipient deposit business institution, electronic payment institution, or 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 shall apply mutatis mutandis if the recipient deposit business institution receives a notification from the previous deposit business institution, electronic payment institution, or virtual asset service provider.
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 and, 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 record. |
| Article 30 |
After a deposit business institution receives a notification from the previous deposit business institution, electronic payment institution, or virtual asset service provider, it shall earmark the amount received based on the notification. If the account balance is less than the notified amount, the current balance in the account shall be earmarked. The amount of funds or virtual assets earmarked by each deposit business institution, electronic payment institution, and 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 or the amount of the fraudulent funds or virtual assets specified by the victim in his or her affidavit.
The recipient 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 48 hours from the time of the earmarking regarding whether the deposit account with the earmarked amount should be classified as watch-listed or whether the earmarking should be released.
If the deposit business institution does not receive a notification within the period specified in the preceding paragraph regarding the deposit account with the earmarked amount to 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 funds in a deposit account have 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 measure for such funds. |
| Article 32 |
Deposit business institutions shall, 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 or she should contact the judicial police authority that reported the watch-listed deposit account to resolve the matter. 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. |