Investigation of Economic Crimes

Major Economic Crimes

"Guidelines of the Investigation Bureau on Determination of Major Economic Crimes" states that:

1. The following crimes shall be treated as major economic crimes according to the number of victims or the amount of illegal interest involved:

• Crimes under Article 339 of the Criminal Code; Articles 154, 155 of the Bankruptcy Act.
• Crimes under Articles 335, 336 of the Criminal Code.
• Crimes under Article 342 of the Criminal Code.
• Crimes under Article 344 of the Criminal Code.

Determination of the aforesaid crimes based on the number of victims and amount involved defers from place to place depending on the local social and economic circumstances. They are set out as follows:

• District Prosecutor's Office of Keelung, Taipei, New Taipei, Shilin, Taoyuan, Taichung, Tainan, Kaohsiung and Ciaotou: That there are more than 50 victims or the amount of illegal interest involved exceeds NTD20 million.
• In all other cases: That there are more than 30 victims or the amount of illegal interest involved exceeds NTD10 million.

2. The following crimes shall be treated as major economic crimes if the amount of illegal interest involved exceeds NTD2 million:

• Crimes under Article 2 of the Smuggling Penalty Act.
• Crimes under Articles 41 to 43 of the Tax Collection Act.
• Crimes under Article 71 of the Business Entity Accounting Act.
• Crimes under Article 22 of the Foreign Exchange Regulation Act.

3. The following crimes shall be treated as major economic crimes if according to the social circumstances at the time they cause harm to economic growth and damage financial stability:

• Articles 195, 196 of the Criminal Code, Article 3 of the Penal Act of Offenses Against National Currency.
• Articles 201 and 201-1 of the Criminal Code.
• Articles 339-1 to 339-4 of the Criminal Code.
• Articles 13-1, 13-2 of the Trade Secrets Act.

Legal Provisions and Regulatory Violations

(5) Articles 95 to 97 of the Trademark Act, Articles 91, 91-1, 92 of the Copyright Act.

(6) Articles 171 to 175 of the Securities and Exchange Act.

(7) Articles 112 to 116 of the Futures Trading Act.

(8) Article 29 of the Multi-Level Marketing Supervision Act.

(9) Articles 125, 125-2, 125-3, 127-1 and 127-2 of the Banking Act.

(10) Articles 57, 57-1 and paragraph 1 of Article 58 of the Financial Holding Company Act.

(11) Articles 58, 58-1, 59 and 60 of the Act Governing Bills Finance Business.

(12) Article 48, 48-1, 48-2, 49, 50 and 51 of the Trust Enterprise Act.

(13) Articles 38-2, 38-3, 39 and 40 of the Credit Cooperatives Act.

(14) Articles 167, paragraph 6 of Article 168, Article 168-2 and 172-1 of the Insurance Act.

(15) Articles 39, 40, 44 and 45 of the Agricultural Finance Act.

(16) Articles 108, 109 of the Financial Asset Securitization Act.

(17) Articles 105 to 110 of the Securities Investment Trust and Consulting Act.

(18) Article 38 of the Securities Investor and Futures Trader Protection Act.

(19) Articles 148, paragraph 1 of Article 149 of the Consumer Debt Liquidation Regulations.

(20) Articles 6 and 19 to 24 of the Money Laundering Control Act.

(21) Articles 46 and 47 of the Act Governing Electronic Payment Institutions.

4. Other acts that violate economic control laws and regulations or involve irregular means such as to damage social economic order in a serious manner.

Economic Crime Prevention and Corporate Corruption

Given that the substance and means of economic crimes continue to evolve along with society and economic changes, with some even attempting to circumvent the law from the outset, careful consideration should be taken not to limit oneself to existing standards for economic crimes. Indeed, any criminal activities sufficient to damage social economic interests and order—or those that, while initially involving amounts or numbers of victims below prescribed standards, are likely to spread if not effectively suppressed—should be actively investigated to prevent their proliferation at the source.

Corporate Corruption Cases

At its 3402nd meeting held on June 12, 2014, the Executive Yuan directed the Bureau to actively and preemptively prevent corporate corruption and major economic crimes. Following this, the Bureau established an Anti-Corruption Section on July 16, 2014, to strengthen its ability to investigate corruption cases. The following sets out the types of crimes involved:

Crimes Involving the Stock Market:

• Manipulation of stock prices (Article 155 of the Securities and Exchange Act).
• Insider trading (Article 157.1 of the Securities and Exchange Act).
• False financial reporting (Article 20, paragraph 2 and Article 174, paragraphs 1 and 2 of the Securities and Exchange Act).
• Fraudulent placement or issuance of shares (Article 20, paragraph 1 of the Securities and Exchange Act).
• Irregular trading (Article 171, paragraph 1, sub-paragraph 2 of the Securities and Exchange Act).
• Special breach of trust and misappropriation (Article 171, paragraph 1, sub-paragraph 3 of the Securities and Exchange Act).
• Illegal private placement (Article 43.6, paragraph 1 of the Securities and Exchange Act).
• Illegal merger and acquisition (Article 43.1, Paragraphs 2 and 3 and Article 43.5, Paragraphs 2 and 3 of the Securities and Exchange Act).

Crimes Involving Financial Corruption

Crimes involving financial corruption (Articles 125.2, 127 and 127.1 of the Banking Act; Articles 57, 58 paragraph 1 and 59 of the Financial Holding Company Act, Articles 58, 60 paragraph 1 and 62 of Act Governing Bills Finance Business; Article 48.1 of Trust Enterprise Act; Articles 38, 38.2 and 39 paragraph 1 of the Credit Cooperatives Act; Article 168.2 of the Insurance Act, and Articles 39, 43 and 44 paragraph 1 of the Agricultural Finance Act).

Draining of the Company's Assets

Draining of the company's assets (a company's staff being involved in acts under Article 342 and Article 336 Paragraph 2 of the Criminal Code).

Infringement of Business Secrets

Infringement of business secrets (Articles 13.1 and 13.2 of the Trade Secrets Act).

Ordinary Crimes

Pursuant to the Presidential Order dated December 19, 2007 under Hua-Zong-Yi-Yi-Zi No. 09600170531 the Organic Act for the Bureau has been revised to contain 20 areas of responsibilities. Paragraph 20 of the said Act ("National security and national interest-related investigations and infrastructure security upon special orders from higher-ranking authorities") crimes which do not come under maintenance of national security, clean governance and anti-narcotics are considered ordinary crimes.