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Clampdown on Investment Scams: Taiwan Unveils "Anti-Fraud Three Laws"

Taiwan is taking a strong stance against investment scams with the implementation of its "Anti-Fraud Three Laws". These new measures aim to combat investment fraud on the internet, increase transparency in online advertising, and promote investor protection.

The "Anti-Fraud Three Laws" consist of amendments to three existing laws, namely the Money Laundering Control Act, the Securities Investment Trust and Consulting Act, and the Personal Data Protection Act. The amendments aim to address the rising issue of investment scams and promote a safer and more trustworthy investment environment in Taiwan.

LawPurposeKey Amendments
Money Laundering Control ActStrengthening the prevention and detection of money laundering activities
  • Expanding the scope of financial institutions reporting suspicious transactions
  • Increasing penalties for violations
  • Promoting cross-border cooperation
Securities Investment Trust and Consulting ActPreventing investment scams on the internet, promoting transparency in online advertising, and protecting investors
  • Prohibiting six types of behavior in investment or business solicitation advertisements
  • Requiring real-name registration for advertisers
  • Requiring online media platforms to remove or restrict access to ads that violate regulations or contain false information
Personal Data Protection ActEnhancing the protection of personal information and preventing its use for fraudulent purposes
  • Increasing penalties for violations
  • Strengthening requirements for obtaining consent for the use of personal data
  • Enhancing protection for sensitive personal information

The Securities Investment Trust and Consulting Act amendments are the most significant, as they focus on preventing investment scams on the internet. The amendments prohibit six types of behavior in investment or business solicitation advertisements, including misleading investors, making profit guarantees, using endorsements or past performance to mislead investors, and engaging in inappropriate promotional activities. Advertisers must also disclose their identity and follow the "real-name registration" policy, and online media platforms are required to remove or restrict access to ads that violate regulations or contain false information.

The Money Laundering Control Act amendments focus on strengthening the prevention and detection of money laundering activities. This includes expanding the scope of financial institutions that are required to report suspicious transactions, increasing penalties for violations, and promoting cross-border cooperation in combating money laundering.

The Personal Data Protection Act amendments aim to enhance the protection of personal information and prevent it from being used for fraudulent purposes. The amendments include increased penalties for violations, strengthened requirements for obtaining consent for the use of personal data, and enhanced protection for sensitive personal information.

Together, these "Anti-Fraud Three Laws" represent a significant step towards combating investment fraud in Taiwan. By implementing new regulations on online advertising, promoting real-name registration and ad takedown mechanisms, and strengthening the prevention and detection of money laundering and personal data protection, the government is working to create a safer and more trustworthy investment environment for investors in Taiwan.

Taiwan's "Anti-Fraud Three Laws" demonstrate the government's commitment to combatting investment fraud and promoting investor protection. The amendments to the Money Laundering Control Act, Securities Investment Trust and Consulting Act, and Personal Data Protection Act represent a significant step towards creating a safer investment environment in Taiwan. By implementing these new measures, Taiwan is sending a clear message that investment fraud will not be tolerated, and investors can have greater confidence in the integrity of the financial system.

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