Chapter 5 Penal Provisions |
| Article 46 |
Non-licensed electronic payment institutions that engage in operating the businesses prescribed in Subparagraphs 2, Paragraph 1 of Article 4 herein shall be punishable by imprisonment for not less than three (3) years and not more than ten (10) years and, in addition thereto, a fine of not less than NT$20,000,000 and not more than NT$500,000,000.
Those that fail to apply to the competent authority for approval in accordance with Paragraph 3 of Article 5 herein or have applied for approval according to rules but were rejected by the competent authority and still operate the businesses prescribed in Subparagraph 1, Paragraph 1 of Article 4 herein shall be punishable by imprisonment for not more than five (5) years and, in addition thereto, a fine of not more than NT$100,000,000.
Should a representative, agent, employee, or other professional of a juridical person commit the offenses prescribed in the preceding two paragraphs in the operation of their businesses, the juridical person’s acting responsible person(s) shall be punished, and the juridical person shall be subject to the fines prescribed in the preceding two paragraphs. |
| Article 47 |
When a specialized electronic payment institution violates Paragraph 1 of Article 21 or Paragraph 1 of Article 22 herein, its acting responsible person(s) shall be punishable by imprisonment for not more than seven (7) years and, in addition thereto, a fine of not more than NT$500,000,000.
In cases described in the preceding paragraph, its acting responsible person(s) shall be punished, and the specialized electronic payment institution shall be subject to the fine prescribed in the preceding paragraph. |
| Article 48 |
Violation of Paragraph 2 of Article 15 herein by collaborating with or assisting foreign institutions to engage in activities inside the Republic of China associated with any business under Paragraph 1 of Article 4 herein without the approval of the competent authority shall be punishable by imprisonment for not more than three (3) years, detention or in lieu thereof, or in addition thereto, a fine of not more than NT$5,000,000.
Should a representative, agent, employee, or other professional of a juridical person commit the offenses prescribed in the preceding paragraph in operating their businesses, the juridical person’s acting responsible person(s) shall be punished, and the juridical person shall be subject to the fines prescribed in the preceding paragraph. |
| Article 49 |
Those who spread rumors or employ fraud to damage the credit of an electronic payment institution shall be punishable by imprisonment for not more than three (3) years, detention or in lieu thereof, or in addition thereto, a fine of not more than NT$5,000,000. |
| Article 50 |
Any of the following offenses shall be subject to a fine of not less than NT$500,000 and not more than NT$10,000,000:
1. Violation of Subparagraph 1 and Subparagraph 2 of Article 25, or Article 42 to which Paragraph 1 and Paragraph 2 of Article 25 apply mutatis mutandis, or violation of the regulations governing the manner of establishment, process, and management of the identification mechanism for users and contracted institutions prescribed pursuant to Paragraph 3 of Article 25, or Article 42 herein to which Paragraph 3 of Article 25 applies mutatis mutandis.
2. Violation of Subparagraph 1 and Subparagraph 2 of Article 26, or Article 42 to which Paragraph 1 and Paragraph 2 of Article 26 apply mutatis mutandis, or violation of the regulations governing the scope or methods for retaining necessary transaction records prescribed pursuant to Paragraph 3 of Article 26 or Article 42 to which Paragraph 3 of Article 26 applies mutatis mutandis. |
| Article 51 |
Any of the following offenses shall be subject to a fine of not less than NT$600,000 and not more than NT$3,000,000:
1. Violation of Subparagraph 2 to 4 of Article 6 herein.
2. Violation of Article 7 by not exclusively operating the businesses under subparagraphs of Paragraph 1 and Paragraph 2, Article 4 herein.
3. Violation of Paragraph 1 of Article 10 herein.
4. Violation of regulations prescribed pursuant to Paragraph 3 of Article 15 herein, governing methods or the operation management of collaborating with or assisting foreign institutions to engage in activities inside the Republic of China associated with businesses under Paragraph 1, Article 4 herein.
5. Violation of the amounts prescribed by the competent authority in accordance with Paragraph 1 of Article 16, or Article 42 herein to which Paragraph 1 of Article 16 applies mutatis mutandis, or violation of the limits set by the competent authority in accordance with Paragraph 2 of Article 16, or Article 42 herein to which Paragraph 2 of Article 16 applies mutatis mutandis.
6. Violation of Paragraph 1 of Article 17, or violation of regulations prescribed pursuant to Paragraph 3 of Article 17, governing the opening restrictions, management, or operating methods related to dedicated deposit accounts.
7. Violation of Article 18 or Article 42 herein to which Article 18 applies mutatis mutandis by delaying the transfer of payment funds or accepting requests from a third party for suspending the payment or remittance, or other similar requests.
8. Violation of Article 19 or Article 42 herein to which Article 19 applies mutatis mutandis.
9. Violation of Paragraph 7 or Paragraph 8 of Article 21 by not completing contract renewal or entering a new contract, or reporting by letter to the competent authority for records within the specified period, or by accepting the registration of new users, entering into contracts with contracted institutions, or accepting more payment funds from existing users.
10. Violation of Paragraph 4 or Paragraph 6 of Article 22 herein.
11. Violation of Paragraph 1 of Article 23, Article 42 herein to which Paragraph 1 of Article 23 applies mutatis mutandis, or violation of Paragraph 2 of Article 23, Article 42 herein to which Paragraph 2 of Article 23 applies mutatis mutandis by failing to receive, pay, clear, or settle offshore funds in foreign currency.
12. Violation of Article 31 or Article 42 herein to which Article 31 applies mutatis mutandis.
13. Violation of Paragraph 1 of Article 32 or Article 42 herein to which Paragraph 1 of Article 32 applies mutatis mutandis.
14. Violation of Article 33 herein by not establishing an internal control and audit system, or not implementing it vigorously.
15. Violation of Article 34 or Article 42 herein to which Paragraph 1 of Article 34 applies mutatis mutandis.
16. Violation of Article 35.
17. Violation of regulations prescribed pursuant to Paragraph 1 of Article 36 or Article 42 herein to which Paragraph 1 of Article 36 applies mutatis mutandis, governing the business management and operating mode, user and contracted institution management, ways for users’ payment instructions, procedures for processing electronic payment accounts or stored value cards involving suspiciously illegal or obviously irregular transactions, management of offshore branch institutions, conditions for mandatory public issuance of stock, business outlets, outsourcing operation, restrictions on investment, and approval or reporting of significant financial, business, and operational matters.
18. Violation of guidelines prescribed pursuant to Paragraph 2 of Article 36, governing the qualification requirements and restrictions on concurrent posts for responsible persons by a responsible person of a specialized electronic payment institution.
19. Violation of Paragraph 1 of Article 41 or Article 42 herein to which Paragraph 1 of Article 41 applies mutatis mutandis by not setting aside funds.
Where the concurrent post prescribed in Subparagraph 18 of the preceding paragraph is appointed by a specialized electronic payment institution, the penalized entity shall be the specialized electronic payment institution. |
| Article 52 |
Where the responsible person or employee of an electronic payment institution commits any of the following acts when the competent authority, pursuant to Article 37 or Article 42 to which Article 37 applies mutatis mutandis, appoints a designee or entrusts an appropriate institution, or designates professional experts or technical personnel to examine or inspect its business, finance or other relevant matters, or order the electronic payment institution to submit financial reports, inventory of property, or other relevant information and reports within a specified period, the responsible person or employee shall be subject to a fine of not less than NT$600,000 and not more than NT$3,000,000:
1. Refusing to be examined;
2. Concealing or destroying account books or documents related to business or financial conditions;
3. Refusing to reply or providing false information to inquiries made by the examiner or inspector without justifiable reasons; or
4. Failing to submit financial reports, inventory of property or other relevant information or reports within the specified period, or providing inaccurate or incomplete information, or failing to pay inspection fees within the prescribed period. |
| Article 53 |
Any of the following offenses shall be subject to a fine of not less than NT$200,000 and not more than NT$1,000,000:
1. Violation of regulations governing the qualifications of responsible persons, limitations on the amount of remittances, business management, and business inspection by those approved by the competent authority to operate businesses prescribed in Paragraph 4 of Article 4.
2. Violation of Paragraph 4 of Article 5 by refusing to provide information or failing to answer questions at the office of the competent authority after receiving a notice.
3. Violation of Paragraph 4 of Article 11 herein.
4. Violation of Paragraph 7 of Article 13 herein.
5. Violation of Article 14 herein.
6. Violation of Paragraph 2 of Article 21 herein.
7. Violation of Paragraph 7 of Article 22 herein.
8. Violation of Paragraph 3 of Article 23 herein.
9. Violation of Article 28 herein.
10. Violation of Article 30 or Article 42 herein to which Article 30 applies mutatis mutandis by providing protections for user rights and interests that are less than those contained in the template of the standard form contract for electronic payment institution business prescribed by the competent authority.
11. Violation of Paragraph 1 of Article 39 herein.
12. Violation of Paragraph 1 of Article 44 by operating without joining a trade association. |
| Article 54 |
Where an electronic payment institution violates Article 20 herein by not depositing sufficient amount of reserve, the Central Bank may charge the institution, on the portion of the shortfall, a penalty interest at the lowest accommodation rate announced by the Central Bank plus five percent (5%) interest per annum; where the violation is of a serious nature, the Central Bank may impose a fine of not less than NT$200,000 and not more than NT$1,000,000.
Where an electronic payment institution violates Paragraph 4 of Article 26 or Article 42 to which Paragraph 4 of Article 26 applies mutatis mutandis by refusing to provide necessary transaction records or information without a legitimate reason, the tax authorities or the customs may impose a fine of not less than NT$200,000 and not more than NT$1,000,000 and order it to provide such records or information within a specified period. Where it fails to provide the records or information within a specified period, it may be fined consecutively for each violation. |
| Article 55 |
Any act to be fined under this Act may be exempted if it is of a trivial nature or if the individual was ordered to make improvements within a specified period and the improvements have been completed. |
| Article 56 |
For electronic payment institutions that have been penalized in accordance with this Act but fail to take corrective actions within the specified period as ordered by the competent authority or the Central Bank, the competent authority or the Central Bank may mete out penalties each time a violation occurs. Where the violation is of a serious nature, the competent authority or the Central Bank may order the electronic payment institution to replace its responsible persons within a specified period, cease its business, or abolish its approval. |