Chapter 5 Penal Provisions |
| Article 57 |
（Penalties）A responsible person or staff member of a financial holding company who violates his/her duty with the intent to gain illegal benefit for himself/herself or a third party and damages the financial holding company's assets or other interests shall be punished by imprisonment for not less than three (3) years and not more than ten (10) years, and may be fined a criminal fine of not less than ten million New Taiwan Dollars (NT$10,000,000) and not more than two hundred million New Taiwan Dollars (NT$200,000,000). Those who thereby obtain any property or property interests from such crimes of one hundred million New Taiwan Dollars (NT$100,000,000) or more shall be punished by imprisonment for not less than seven (7) years, and may also be fined a criminal fine of not less than twenty-five million New Taiwan Dollars (NT$25,000,000) and not more than five hundred million New Taiwan Dollars (NT$500,000,000).
When two or more responsible persons or staff members of a financial holding company jointly commit the offenses prescribed in the preceding paragraph, their punishment may be increased by up to one-half of the specified punishment.
Attempts to commit the acts described in the Paragraph 1 here of shall be punishable. |
| Article 57- 1 |
（Penalties）When persons, with the intent to unlawfully own others’ property for themselves or a third person, use fraudulent methods to cause the financial holding company to make payment using the assets of the financial holding company or a third party, or use illicit methods to enter fictitious data or illicit commands into the financial holding company computer or relevant equipment and thereby create the records of acquisition, loss or alteration of property ownership and take the property of another, those who thereby obtain any property or property interests from such crimes of one hundred million New Taiwan Dollars (NT$100,000,000) or more shall be punished by imprisonment for not less than three (3) years and not more than ten (10) years, and may also be fined a criminal fine of not less than ten million New Taiwan Dollars (NT$10,000,000) and not more than two hundred million New Taiwan Dollars (NT$200,000,000).
Those who use methods described in the foregoing paragraph to obtain the illegal benefit of assets or cause a third party to do so shall likewise be subject to the specified punishments.
Attempts to commit the acts described in the preceding two paragraphs shall be punishable. |
| Article 57- 2 |
（Penalties）For those who have turned themselves in after committing crimes stipulated in Article 57 or Article 57-1 and delivered all criminal gains, if any, out of their free will, their sentences shall be reduced or remitted. If their acts have led to the capture of other principal offenders or joint offenders, their sentences shall be remitted.
For those who have committed crimes stipulated in Article 57 or Article 57-1 and confessed during investigation, they have delivered all criminal gains, if any, out at their free will, their sentences shall be reduced. If their acts of confession have led to the capture of other principal offenders or joint offenders, their sentences shall be reduced by one-half.
For those who have committed crimes stipulated in Article 57 or Article 57-1, if any property or property interests obtained from such crimes has exceeded the highest level of fines, more fines can be added within the range of their illegal gains. Should their criminal acts have jeopardized the stability of the financial market, their sentences shall be increased by one-half. |
| Article 57- 3 |
（Penalties）Where a gratuitous act done by a responsible person or staff member of a financial holding company under Article 57, Paragraph 1, or by a committer of a violation under Article 57-1, Paragraph 1, is prejudicial to the rights of a financial holding company, the financial holding company may file a motion with a court to revoke the act.
Where a non-gratuitous act done by a responsible person or staff member of a financial holding company or a committer of a violation as referred to in the preceding paragraph is done with the knowledge, at the time of commission, that it would be prejudicial to the rights of a financial holding company, and the beneficiary of the act also knows such circumstances at the time the benefit is received, the financial holding company may file a motion with a court to revoke the act.
When filing a motion with a court for revocations under either of the preceding two paragraphs, a party may also file a motion with the court to order the beneficiary or any party to whom the benefit has been transferred to restore the status quo ante; provided, this shall not apply where the party to whom the benefit has been transferred was not aware at the time of transfer that there was cause for revocation.
Any disposition of property between a responsible person or staff member of a financial holding company or a committer of a violation as referred to in Paragraph 1 and such a person's spouse, lineal relative, cohabiting relative, head of household, or family member shall be deemed to be a gratuitous act.
Any disposition of property between a responsible person or staff member of a financial holding company or a committer of a violation as referred to in Paragraph 1 and any person other than those set forth in the preceding paragraph shall be presumed to be a gratuitous act.
The claim for revocation under Paragraphs 1 and 2 shall be extinguished one year after the time the financial holding company knows there is cause for revocation if the financial holding company fails to exercise the right, or ten years after the time of the act. |
| Article 57- 4 |
（Penalties）The crimes set forth in Article 57, Paragraph 1, and Article 57-1, Paragraph 1, are serious crimes as defined in Article 3, Paragraph 1, of the Money Laundering Control Act, and are subject to the application of relevant provisions of the Money Laundering Control Act. |
| Article 58 |
（Penalties）In the event that the bank subsidiary or insurance subsidiary of a financial holding company extends unsecured credit to the persons listed in Article 44, above, or extends secured credit without full security or the terms of such extended credit are more favorable than these terms offered to other same category customers, the person responsible for the violation shall be punished by imprisonment for not more than three (3) years, detention, and/or a criminal fine of not less than five million New Taiwan Dollars (NT$5,000,000) and not more than twenty-five million New Taiwan Dollars (NT$25,000,000).
In the event that the amount of a secured credit extended to the persons listed in Article 44 by the bank subsidiary or insurance subsidiary of a financial holding company exceeds the amount prescribed by the competent authority without obtaining approval with the attendance of two-thirds or more of all directors of the company and the concurrence of three-quarters or more of the directors present, or violates the credit limit or total balance of loans prescribed by the competent authority, the person(s) responsible for the violation shall be punished by an administrative fine of not less than two million New Taiwan Dollars (NT$2,000,000) and not more than fifty million New Taiwan Dollars (NT$50,000,000). |
| Article 59 |
（Penalties）The responsible person or employee of a financial holding company who violates Paragraph 4 of Article 17 herein by accepting commissions, rebates or other unwarranted benefits shall be punishable by imprisonment for not more than three (3) years, detention, and/or a fine of not more than Five Million New Taiwan Dollars (NT$5,000,000). |
| Article 60 |
（Penalties）Commission of any of the following acts shall be punishable by a fine of not less than two million New Taiwan Dollars (NT$2,000,000) and not more than fifty million New Taiwan Dollars (NT$50,000,000):
1. Violation of Paragraph 1 of Article 6 herein by failing to apply for the establishment of a financial holding company;
2. Violation of Paragraph 3 of Article 16 herein by holding shares without the approval of the competent authority;
3. Violation of Paragraph 1 or Paragraph 2 of Article 16 herein by failing to report to the competent authority, or violation of the proviso in Paragraph 7 of the same Article by increasing shareholding;
4. Violation of Paragraph 10 of Article 16 by failing to dispose within the time period prescribed by the competent authority;
5. Violation of regulations governing reporting or announcement prescribed by the competent authority in accordance with Paragraph 5 of Article 16 herein;
6. Violation of Paragraph 6 of Article 16 herein by creating a pledge;
7. Violation of Paragraph 1 of Article 18 herein by undergoing a merger, general transfer or general assumption (of assets and/or debt obligations) without approval;
8. Violation of Article 38 herein by holding shares of a financial holding company;
9. Violation of Paragraph 1 of Article 39 herein on the restricted use of short-term funds; or violation of Paragraph 2 of the same Article by investing in real estate or investing in real estate not for own use without approval;
10. Violation of regulations governing issuance terms or conditions prescribed by the competent authority in accordance with Paragraph 3 of Article 39 herein;
11. Violation of the ratios, requirements or restrictions prescribed by the competent authority in accordance with Article 40 or Article 41 herein;
12. Violation of Paragraph 1 of Article 42 herein by failing to keep data confidential;
13. Violation of Paragraph 1, Paragraph 2 or Paragraph 4 of Article 43 herein; or violation of the regulations governing the scope of businesses allowed, sharing of information, sharing of facilities, premises or personnel management prescribed by the competent authority in accordance with Paragraph 3 of Article 43 herein;
14. Violation of the restriction on trading terms or the manner in which the board of directors adopts resolution as stipulated in Paragraph 1 of Article 45 herein; or violation of the provision on the percentage of the amount stipulated in Paragraph 4 of the same Article;
15. Violation of Paragraph 1 of Article 46 herein by failing to report to the Competent Authority or make disclosure;
16. Violation of Article 51 herein by failing to establish an internal control or audit system or failing to duly implement such system;
17. Violation of Paragraph 1 or Paragraph 2 of Article 53 herein; or failure to replenish its capital within the period of time prescribed by the competent authority in accordance with Paragraph 3 of the same Article;
18. Violation of orders issued by the competent authority in accordance with Paragraph 1 of Article 55 herein;
19. Violation of Paragraph 1 of Article 56 herein by failing to perform the obligation of assistance; or violation of orders issued by the competent authority in accordance with Paragraph 2 of the same Article. |
| Article 61 |
（Penalties）The responsible person or a staff member of a financial holding company who commits any of the following acts in connection with the FSC having ordered production of relevant financial statements, transaction data or other relevant information within a prescribed period of time, or having appointed an official or authorized an appropriate institution or appointed a specifically professional and technical expert to investigate the business, finances, and other relevant affairs of such financial holding company and/or its subsidiary(ies) in accordance with Article 52 of this Act shall be punished by an administrative fine of not less than Two Million New Taiwan Dollars (NT$2,000,000) and not more than Fifty Million New Taiwan Dollars (NT$50,000,000):
1.Refusing to be investigated or refusing to open the vault or other storage facilities;
2.Concealing or damaging books and documents related to business or financial conditions;
3.Refusing to reply or providing misleading responses to inquiries of the investigator without justifiable reasons; and/or
4.Failure to timely, honestly or completely provide financial reports, transaction data or other related data designated by the FSC, or to pay investigation fees within t he specified period(s) of time. |
| Article 62 |
（Penalties）Commission of any of the following acts shall be punishable by a fine of not less than one million New Taiwan Dollars (NT$1,000,000) and not more than twenty million New Taiwan Dollars (NT$20,000,000):
1. Violation of the proviso in Paragraph 4 of Article 36 herein or Paragraph 2 of Article 37 herein by making an investment without approval;
2. Violation of Paragraph 5 of Article 36 or Paragraph 7 of Article 37 herein by failing to make adjustment within the period of time prescribed by the competent authority; or violation of Paragraph 7 of Article 36 herein where the responsible person or employee [concurrently] acting as managerial personnel of enterprises in which the venture capital subsidiary invests;
3. Violation of Paragraph 8 of Article 36 herein by undertaking capital decrease without the approval of the competent authority;
4. Violation of Paragraph 1 of Article 37 herein by making an investment without the approval of the competent authority, or having itself or its representative acting as the director or supervisor of the invested enterprise, or designating a person to be the managerial personnel of such enterprise;
5. Violation of Paragraphs 3, 4, or 5 of Article 37 herein by exceeding the investment limit or the restriction on shareholding; and
6. Violation of Paragraphs 1, 2, or 4 of Article 68 herein by failing to report, apply for permission, adjust the shareholding, or apply for approval. |
| Article 63 |
（Penalties）Unless otherwise prescribed by this Act, administrative fines imposed for violation of this Act or regulations authorized hereunder or for failure to perform obligations to be performed shall be not less than Five Hundred Thousand New Taiwan Dollars (NT$500,000) and not more than Two Million Five Hundred Thousand New Taiwan Dollars (NT$2,500,000). |
| Article 64 |
（Compensation claim）After having paid an administrative fine, the relevant financial holding company or its subsidiary(ies) shall claim compensation from the person(s) responsible for the violation. |
| Article 65 |
（Administrative or criminal fines）If the responsible person(s), agent(s), employee(s) or staff member(s) of a legal entity commits any punishable act under this Act, in addition to the punishment being imposed on the person(s) responsible for the violation in accordance with this Chapter, the legal entity shall also be punished by the administrative fine or criminal fine described in the relevant Article. |
| Article 66 |
（Compulsory enforcement）If an administrative fine prescribed for in this Act is not paid within the period of time set by the FSC, a surcharge for late payment shall be levied, and calculated at the rate of one percent (1%) of the amount of the fine in arrears for each day of delay, starting from the day following the expiry of the set period of time. If the payment of the fine still has not been made thirty (30) days therefrom, the case shall be referred to the court for compulsory execution. |
| Article 67 |
（Discharge of responsible person or revocation of approval ）If a financial holding company or the punished person has been penalized in accordance with this Chapter and fails to take corrective measures within the period of time prescribed by the FSC, the FSC may punish such financial holding company or such punished person for each violation. Where the violations are of a serious nature, the FSC may require the discharge of the responsible person or revoke the approval. |
| Article 67- 1 |
（Confiscation of criminal proceeds）Proceeds of the crime that belong to the offender in violation of this Act, or obtained by any other natural persons, legal persons, or unincorporated bodies pursuant to paragraph 2, Article 38-1 of the Criminal Code shall be confiscated, with the exception of compensations due to those victims or parties eligible for claims against damages. |
| Article 67- 2 |
（Labor service）Those who violate this Act and are fined a criminal fine of Fifty Million New Taiwan Dollars (NT$50,000,000) or more, but are unable to pay their fine in full, shall perform labor service for a period of not more than two (2) years; the length of such labor service shall be calculated by the ratio of the total amount of the fine to the number of days in two (2) years. Those who are fined One Hundred Million New Taiwan Dollars (NT$100,000,000) or more, but are unable to pay their fine in full, shall perform labor service for a period of not more than three (3) years; the length of such labor service shall be calculated by the ratio of the total amount of the fine to the number of days in three (3) years. |