Release date：2017/3/24 下午 03:49:56
Update date：2026/5/22 下午 02:14:34
Scope of Economic Crime Prevention
The scope of economic crime prevention may be classified into economic crimes and ordinary crimes. Collection of information, research and analysis, and the investigation and prevention of such crimes consist generally of the following:
Convening of the Economic Crime Prevention Board
In May 1979, the Executive Yuan formulated effective prevention policies specifically regarding the existing status of economic crimes, financial measures, and major cases, with a view to comprehensively preventing economic crimes. The Executive Yuan also directed the Bureau to liaise with relevant units regarding the formation of a special project team and convened the Economic Crime Prevention Board (the "Board").
The Board's composition underwent several changes over time. At present, its members (13 government authorities) consist of:
- The Fair Trade Commission
- The Financial Supervisory Commission (FSC), including the Securities and Futures Bureau, the Banking Bureau, the Insurance Bureau, and the Inspection Bureau
- The Ministry of the Interior, including the National Police Agency and the National Immigration Agency
- The Ministry of Foreign Affairs, including the Bureau of Consular Affairs
- The Ministry of Economic Affairs, including the Department of Commerce and the Taiwan Intellectual Property Office
- The Ministry of Justice, including the Department of Prosecutorial Affairs, the Taiwan High Court Prosecutor's Office, and the Investigation Bureau
- The Ministry of Finance, including the Customs Administration and the Taxation Administration
- The Ministry of Digital Affairs, including the Administration for Digital Industries
Board Operations and Oversight
In addition to conducting economic crime prevention work based on their respective roles, Board members also periodically convene meetings, which are chaired by the Director of the Bureau, with officers from the Executive Yuan, Judicial Yuan, and National Security Bureau attending as observers.
The Board's functions include:
Integrated Combat Against Economic Crimes
- Combining financial and economic, judicial, and foreign affairs powers to effectively combat economic crimes as an integrated body.
- Collecting information on economic crimes through the Board as a platform to implement prevention measures.
Key Functions
- Discussing existing major economic crimes to distill and implement effective counter-measures.
- Examining the pros and cons of existing financial policies and economic measures to showcase government authorities' participation in making improvements.
- Giving recommendations to the competent authorities of revisions of existing law to cover loopholes.
- Coordinating and allocating work involving the prevention of economic and financial crime specifically assigned by superior authorities.
Implementation of Prevention Work
The Board implements its work in conjunction with government policy, and includes the "stabilization of prices and discouragement of hoarding and causing price inflation".
Efforts to Combat Crimes Affecting Daily Life
To strengthen its ability to combat criminal activities that affect everyday life and to eliminate the fear of such crime from the general public, the Board has formulated the Implementation Plan of the Prosecution Authority for Projects that Combat Economic Crime and the Guidelines for the Implementation Plan of the Taiwan High Prosecutors Office for Combatting Crimes that Impact People's Livelihoods. Since the formation of the Materials Price Project Team on November 5, 2007, the Board has requested all field offices and stations to report on instances of hoarding and artificial price rises. The Board also works with the competent authorities in conducting administrative inspections.
Reporting Mechanism for Hoarding
As of December 6, 2011, the Board has assumed the role of the Executive Yuan's "window for lodging complaints on the hoarding of goods," with the toll-free number 0800-007-007 as the complaint hot-line. To increase exposure, in addition to coordinating the dissemination of information by members of the Executive Yuan Price Stabilizing Team, the Board also posts online articles on external networks, conducts joint promotions in respective field offices and stations, and coordinates promotion efforts by public and private units.
Compilation of Annual Reports and Research on Economic Crime Prevention
The Board is responsible for the compilation of annual reports on its economic crime prevention work, the production of research reports on the topic, and the establishment of archives to serve as references during investigations.
Research and Preventive Measures
Economic Crime Prevention and Research
Regarding the existing economic situation, irregular economic activities, new types of economic crime, and key industrial and commercial enterprises in poor financial health, the Board compiles annual economic crime prevention and research reports to study preventive measures and to serve as a reference for relevant authorities. The Board also holds in-depth discussions on completed cases, and examines potential administrative oversight or legal loopholes and possible causes of such crimes. It then proposes specific improvements to prevent recurrence.
Electronic Archiving
The Board has established and maintains an electronic archive for storing information on new-style major economic crime for reference during prevention and investigation activities.
Prevention of Corruption and Examination of Financial Instruments
The Board focuses on the prevention of corruption and negligence, and examines large-scale bounced checks and bills to ensure better advance awareness of economic crimes.
Financial Oversight and Crisis Management
The Board seeks to gain an in-depth understanding of the financial operations of major domestic enterprises and financial and insurance institutions that incur serious operating losses and face financial crises. This work is conducted to uncover suspected cases first-hand of embezzlement of funds by insiders, draining of corporate funds, or involuntary winding-up procedures.
Market Surveillance and Warning Systems
The Board seeks to strengthen its ability to provide advance warnings regarding insider trading, rigging of share prices, and irregular settlements by listed or OTC companies or specific individuals on the stock market. It also monitors the use of financial derivatives by foreign (mainland China) enterprises and financial institutions in conducting irregular stock or foreign exchange market operations, or those involving real estate.
Database Utilization for Bill Return Inspection
The Board utilizes various types of databases as part of a comprehensive workflow for the selective inspection of large-scale bill returns by companies and businesses. Following analysis, the Board identifies key groups and suspected check-sale groups, and subsequently forwards its findings to field units for further investigation.
Studies and Discussions with Academics and Experts on Preventing Economic Crime
The Board regularly hosts discussion forums focused on the prevention of economic crime. The Board invites experts and academics in relevant fields, prosecutors, and officers from competent authorities to speak at these forums on closed cases and issues uncovered during the collation of financial and economic information. They conduct in-depth analyses of causes, administrative oversights, regulatory loopholes, and other factors, and provide response measures and recommendations for improvement. The Board consolidates all relevant information and submits its views to the competent authorities for reference.
Promotion of Anti-Corruption and Corporate Governance
The Board promotes the exchange of anti-corruption experience by enterprises, establishes liaison windows, and assists in the promotion of corporate governance.
Anti-Corruption Exchanges
Along with field offices and stations, the Bureau regularly exchanges anti-corruption experiences with enterprises through visits to enterprise groups, science and tech industrial parks, and industrial and commercial organizations and institutions. It assists enterprises in promoting corporate governance and establishes liaison windows to foster stronger partnerships between the Bureau and the business sector.
Investigation of Economic Crimes
(I) Major economic crimes
The Guidelines of the Investigation Bureau for Determining Major Economic Crimes state that:
The following crimes shall be treated as major economic crimes according to the number of victims or the amount of illegal interest involved:
Classification of Major Economic Crimes
The following offenses are categorized as major economic crimes:
- Crimes under Article 339 of the Criminal Code, and Articles 154 and 155 of the Bankruptcy Act
- Crimes under Articles 335 and 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 differs from place to place depending on local social and economic circumstances, and are set out as follows:
- The District Prosecutor's Office of Keelung, Taipei, New Taipei, Shilin, Taoyuan, Taichung, Tainan, Kaohsiung, and Ciaotou: More than 50 victims or the amount of illegal interest involved exceeds NTD 20 million.
- In all other cases: More than 30 victims or the amount of illegal interest involved exceeds NTD 10 million.
Major Economic Crimes with a Threshold of NTD 2 Million
The following crimes shall be treated as major economic crimes if the amount of illegal interest involved exceeds NTD 2 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
Major Economic Crimes Based on Economic and Financial Impact
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 and 196 of the Criminal Code, and 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 and 13-2 of the Trade Secrets Act
- Articles 95 to 97 of the Trademark Act, and Articles 91, 91-1, and 92 of the Copyright Act
- Articles 171 to 174 of the Securities and Exchange Act
Relevant Legal Provisions
- Articles 112 to 116 of the Futures Trading Act
- Article 29 of the Multi-Level Marketing Supervision Act
- Articles 125, 125-2, 125-3, 127-1, and 127-2 of the Banking Act
- Articles 57, 57-1, and paragraph 1 of Article 58 of the Financial Holding Company Act
- Articles 58, 58-1, 59, and 60 of the Act Governing Bills Financing
- Articles 48, 48-1, 48-2, 49, 50, and 51 of the Trust Enterprise Act
- Articles 38-2, 38-3, 39, and 40 of the Credit Cooperatives Act
- Articles 167, paragraph 6 of Article 168, Article 168-2, and 172-1 of the Insurance Act
- Articles 39, 40, 44, and 45 of the Agricultural Finance Act
- Articles 108 and 109 of the Financial Asset Securitization Act
- Articles 105 to 109 of the Securities Investment Trust and Consulting Act
- Article 38 of the Securities Investor and Futures Trader Protection Act
- Articles 148, and paragraph 1 of Article 149 of the Consumer Debt Liquidation Regulations
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 societal and economic changes, with some even attempting to circumvent the law from the outset, careful consideration should be taken not to limit oneself strictly to existing standards for economic crimes. Indeed, any criminal activities sufficient to damage social economic interests and order—or those that, despite initially involving amounts or numbers of victims below the prescribed standards, are likely to spread if not effectively suppressed—should be actively investigated to prevent their proliferation at the source.
(II) Corporate Corruption Cases
Anti-Corruption and Economic Crime Prevention
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 Unit on July 16, 2014, to strengthen its ability to investigate corruption cases. The following sets out the types of crimes involved:
1. 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, subparagraph 2, of the Securities and Exchange Act)
- Special breach of trust and misappropriation (Article 171, paragraph 1, subparagraph 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)
2. 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 the Act Governing Bills Financing, Article 48.1 of the 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.
3. Draining of Company Assets:
A company employee being involved in acts under Article 342 and Article 336, paragraph 2, of the Criminal Code.
Infringement of Business Secrets
Articles 13.1 and 13.2 of the Trade Secrets Act.
Ordinary Crimes
Legal Basis and Responsibilities
Pursuant to Presidential Order Hua-Zong-Yi-Yi-Zi No. 09600170531 dated December 19, 2007, the Organic Act for the Bureau has been revised to contain 20 areas of responsibilities. Paragraph 20 of the Act ("National security and national interest-related investigations and infrastructure security upon special orders from higher-ranking authorities") states that crimes which do not fall under maintaining of national security, clean governance, or anti-narcotic action are considered ordinary crimes.
Pursuit of Fugitives of Economic Crime
Fugitives of Economic Crime
There is an increasing trend of economic crime perpetrators absconding overseas to enjoy their illegal gains. If they are not caught and brought to justice, they could cause serious damage to the justice and reputation of public authorities.
Coordination Team for the Arrest of Fugitives of Economic Crime
In May 1984, at the 26th Meeting of the Prevention of Economic Crime Board, a resolution was passed to form a Coordination Team for the Arrest of Fugitives of Economic Crime. The team's composition underwent several changes over time, and its members currently include:
- The Ministry of Foreign Affairs, including the Bureau of Consular Affairs
- The Ministry of Justice, including the Department of International and Cross-Strait Legal Affairs
- The Mainland Affairs Council of the Executive Yuan
- The Ministry of the Interior, including the National Immigration Agency
- The National Policy Agency, including the Criminal Investigation Bureau
- The Investigation Bureau, which undertakes secretariat work
The team combines the powers of the respective authorities and actively pursues fugitives of economic crime or plans their repatriation. The team has also expanded its scope of responsibility to include fugitives involved in major corruption, drugs, firearms, organized crime, and other major criminal cases.
Handling of Fugitive Cases
Since January 16, 2015, the Bureau has handled cases involving fugitives in mainland China, Hong Kong, and Macao, with cases being transferred to the Bureau's International Affairs Department for follow-up work.
Cross-strait Joint-action against Crimes and Judicial Cooperation
(I)
Our Straits Exchange Foundation and the Mainland's Association for Relations Across the Taiwan Strait (ARATS) entered into a Cross-strait Joint Fight Against Crime and Mutual Legal Assistance Agreement on April 26, 2009, which took effect on June 25 of the same year. Pursuant to Ministry of Justice Order Fa-Jian-Zi No. 0980803292 dated August 10, 2009, the Bureau was authorized to establish official liaison channels with Mainland China's Ministry of Public Security, Supreme People's Procuratorate, Ministry of Justice, the People's Bank of China's Anti-Money Laundering Bureau, and the China Anti-Money Laundering Monitoring and Analysis Center. The Bureau's Economic Crime Prevention Department serves as the secretariat for these operations. When subordinate units of the Bureau require cross-border investigation into criminal activities, they must seek assistance from mainland law enforcement authorities through the Bureau's Economic Crime Prevention Department.
(II)
National Security and Public Safety Cooperation and Exchange
To maintain national security, protect the public, and effectively address cross-border criminal activities, thereby fostering peace and stability across the Strait, the Bureau has engaged in cooperation and exchanges with law enforcement authorities in the mainland, Hong Kong, and Macao. Annual visits are held to facilitate the following:
- Information exchange
- Joint investigation of cases
- Repatriation of convicts and suspects in criminal cases
- Reception of prison inmates
- Briefings on restrictions regarding the personal freedom of Mainland Chinese citizens in Taiwan
Exchange of criminal investigation and authentication techniques
- Exchange of criminal investigation and authentication techniques
- Mutual visits of officers from both parties
- Convening of academic forums, seminars, and conferences
These initiatives serve to foster mutual trust, improve understanding of joint anti-crime actions and liaison channels, and enhance the professional capabilities of both parties in investigating cases.
