TAIPEI (TVBS News) — The Financial Supervisory Commission (金管會, FSC), Taiwan's financial regulator, announced Thursday (Aug. 7) plans to amend the Fraud Crime Hazard Prevention Act (詐防條例) to establish a groundbreaking cross-industry inquiry mechanism. The ambitious initiative will connect traditional financial institutions with virtual asset service providers (VASPs) to create a comprehensive anti-fraud network. This regulatory enhancement aims to dramatically improve the precision and effectiveness of fraud prevention efforts across Taiwan's rapidly evolving financial landscape.
The Legislative Yuan's (立法院) Finance Committee (財委會), Taiwan's parliament's financial oversight body, conducted inspections at Cathay United Bank (國泰世華銀行) and Hua Nan Bank (華南銀行) examining fraud prevention mechanisms. Vice Chairman Chen Yen-liang (陳彦良) and Banking Bureau Director-General Tung Cheng-chang (童政彰) attended these inspections. Tung reported the commission bolstered fraud prevention through five strategic measures, including promoting an electronic platform for financial data review, replacing outdated fax methods.
Currently, 36 domestic banks, Chunghwa Post (中華郵政), Taiwan's postal service provider, nine electronic payment companies, and 23 credit cooperatives have successfully joined the sophisticated electronic platform. The commission actively urges foreign bank branches operating in Taiwan to participate in this comprehensive fraud prevention network. The regulatory body continues reviewing the critical 48-hour joint defense notification retention period while aiming to refine financial institutions' notification operations and strengthen virtual account service control mechanisms.
Director-General Tung emphasized that once virtual asset service providers are fully regulated, banks and VASPs can conduct seamless cross-industry inquiries, enabling real-time monitoring of suspicious accounts involved in fraudulent activities through comprehensive cash and currency flow information. The Fraud Crime Hazard Prevention Act already provides regulatory framework for VASPs, positioning Taiwan ahead of many jurisdictions. The commission will propose strategic amendments to establish this revolutionary cross-industry inquiry mechanism as the VASP-specific legislation takes full effect. ◼ (At time of reporting, US$1 equals approximately NT$29.890)