Discovering that your bank account has been restricted or receiving a police notice about suspected money laundering can be alarming. Many people wonder whether a flagged account means they have committed a crime, what investigators will examine, whether their phone or cryptocurrency may be seized, and whether prosecution is inevitable.

Money laundering investigations in Taiwan often begin with suspicious financial transactions, fraud victim reports, bank notifications, or evidence uncovered in other criminal cases.

 

Investigators may trace the movement of funds, identify who controlled the accounts, determine who instructed withdrawals or transfers, and examine whether the individuals involved knew about or participated in criminal activity.

Being investigated does not mean being found guilty. Under Taiwan's criminal procedure, defendants are presumed innocent until proven guilty, and criminal allegations must be established through evidence.

 

1. Flagged Bank Accounts and Financial Restrictions

 1. Does a Flagged Bank Account Mean You Are Guilty? 

When a bank account is suspected of being connected to criminal activity, a court, prosecutors' office, or judicial police authority may notify the bank to designate it as a flagged account.

Under Taiwan's applicable account management regulations, the bank must suspend the transaction functions of a flagged account after receiving the relevant notification.

However, a flagged account is an investigative and financial control measure, not a criminal conviction. It also does not automatically establish that every amount deposited in the account constitutes criminal proceeds.

 

 2. Flagged Accounts vs. Court-Ordered Restrictions on Property 

A flagged bank account is different from a property disposition restriction under Article 18 of Taiwan's Money Laundering Control Act.

Where statutory conditions are satisfied, prosecutors may apply to the court for an order restricting withdrawals, transfers, payments, delivery, or disposal of specified property connected to suspected money laundering offenses under Articles 19 or 20.

Each restriction period is limited to six months. Where necessary, prosecutors may apply for one extension of up to another six months.In urgent circumstances, prosecutors may impose an initial restriction but must apply for a corresponding court order within three days.

Therefore, individuals should first determine whether their account is subject to a flagged-account designation, related account controls, internal bank restrictions, or a specific property restriction order.

➡︎ The responsible authority, legal basis, scope, and available remedies may differ.

 

2. Police Questioning and Suspects' Rights

 1. What Will Police Ask During a Money Laundering Investigation? 

Police may question account holders, actual account users, individuals who withdrew or transferred funds, and people suspected of providing financial accounts or assisting with payments.

Common questions concern who controlled the account, whether ATM cards or online banking credentials were shared, when money was received or transferred, whether compensation was paid, and how the person communicated with other individuals involved.

Investigators may also examine employment arrangements, loan applications, and other explanations for the transactions.

 

 2. The Right to Remain Silent and Consult a Lawyer 

When a person is questioned as a criminal suspect, Taiwan's Code of Criminal Procedure requires notification of important procedural rights.

These include being informed of the suspected offense, the right to remain silent, the right to retain defense counsel, and the right to request investigation of favorable evidence.

➡︎ Defense counsel may generally attend questioning, take notes, and express opinions during the investigation, subject to statutory exceptions.

➡︎ During questioning, suspects should answer according to their actual knowledge and recollection. If they do not remember or cannot confirm a detail, they should not guess.

Before signing a police interview record, carefully review whether it accurately reflects the statements made and request corrections where necessary.

 

3. Financial Investigations, Searches, and Seizures

 1. How Investigators Trace Money Laundering Transactions 

Money laundering investigations may involve bank statements, ATM surveillance footage, branch transaction records, electronic communications, and device data.

Where cryptocurrency or other virtual assets are involved, investigators may also examine exchange accounts, wallet addresses, blockchain transaction histories, and fiat currency deposits or withdrawals.

➡︎ The investigation may extend beyond the registered account holder to individuals who actually received, withdrew, transferred, or directed the movement of funds.

 

 2. Can Police Seize Phones, Computers, and Cryptocurrency Records? 

Searches generally require a judicial search warrant unless a statutory exception applies.

A search warrant identifies the relevant case, the persons or objects to be searched, the location or electronic records involved, and the applicable period.Items that may constitute evidence or be subject to confiscation can potentially be seized.

Common examples include mobile phones, computers, bankbooks, ATM cards, financial credentials, accounting records, cash, and electronic information related to financial transactions.

During a search, individuals should not obstruct lawful enforcement or delete messages, reset devices, erase cloud records, or transfer relevant assets.

They may confirm the officers' identities, examine the scope of the warrant, and review the seizure inventory. Any concerns about the procedure should be documented and discussed with legal counsel.

 

4. Prosecutorial Investigation and Criminal Trial

 1. What Happens After Police Refer the Case to Prosecutors? 

After the police investigation, the case may be referred to a district prosecutors' office.

Prosecutors review interview records, financial documents, communications, and other evidence. They may summon suspects or witnesses, request additional information, or instruct police to investigate particular transactions.

➡︎ The investigation generally focuses on the origin and destination of funds, account control, instructions from other individuals, and whether the suspect received compensation or participated in the alleged criminal activity.

 

 2. Can a Suspect Be Detained During the Investigation? 

Pretrial detention is not automatic merely because someone receives a police notice or becomes a suspect.

Where statutory grounds exist, prosecutors may apply to a court for detention. A judge must examine the relevant legal requirements and necessity before ordering detention.Depending on the circumstances, other measures such as bail, release to a responsible person, or residence restrictions may apply.

 

 3. Indictment, Non-Prosecution, and Deferred Prosecution 

At the conclusion of the investigation, prosecutors may file an indictment, issue a non-prosecution disposition, or grant deferred prosecution where the legal conditions are satisfied.

➡︎ If an indictment is filed, the case proceeds to court, where evidence is examined and a judgment is issued.A court may ultimately find the defendant guilty or not guilty.

Not every flagged-account case or money laundering investigation results in prosecution or conviction.

 

5. Money Laundering Charges, Account Providers, and Criminal Penalties

 1. What Constitutes Money Laundering in Taiwan? 

Taiwan's Money Laundering Control Act addresses conduct involving criminal proceeds, including concealing or disguising their origin, obstructing investigation or confiscation, receiving or possessing another person's criminal proceeds, and using one's own criminal proceeds in transactions with others.

Under Article 19, the statutory penalties depend in part on the value of the property or financial benefits involved.

For money laundering involving less than NT$100 million, the statutory penalty is imprisonment for six months to five years, with a possible additional fine of up to NT$50 million.

Where the value reaches NT$100 million, the statutory penalty is imprisonment for three to ten years, with a possible additional fine of up to NT$100 million.

➡︎ The actual offense and sentence depend on the applicable statutory elements, facts, and evidence.

 

 2. Providing a Bank Account May Involve Separate Liability 

Article 22 of the Money Laundering Control Act separately regulates providing financial accounts, virtual asset accounts, or third-party payment accounts to others without legitimate justification.

Certain circumstances may initially result in an administrative warning.

➡︎ However, criminal liability may arise in situations involving agreed or received compensation, the provision of three or more accounts, or repeated conduct within five years after a warning.

The statutory penalty may include imprisonment of up to three years and a fine of up to NT$1 million.A flagged account alone does not establish that its owner intentionally participated in fraud or money laundering.

Investigators must still examine whether the person knew about the criminal activity, controlled the account, followed instructions, received compensation, or otherwise satisfied the elements of a particular offense.

 

 3. Confiscation of Criminal Proceeds and Property 

Article 25 provides for confiscation of property or financial benefits involved in specified money laundering offenses, subject to the applicable legal requirements.

Confiscation may raise issues involving property ownership, the connection between assets and criminal conduct, and third-party rights.

➡︎ This does not mean that every legally obtained asset belonging to a suspect is automatically confiscated.

 

 4. Confession and Possible Sentence Reduction 

Article 23 contains provisions concerning voluntary surrender, confession, and potential sentence reduction or exemption where statutory conditions are satisfied.

Relevant conditions may include surrendering criminal proceeds or assisting authorities in identifying or seizing laundering-related property or other offenders.

However, a confession does not automatically guarantee a reduced sentence or exemption from punishment.Individuals should understand the evidence and legal consequences before making statements about criminal responsibility.

 

6. What to Prepare During a Money Laundering Investigation

 1. Preserve Financial and Communication Records 

Keep bank notifications, police or prosecutors' office notices, transaction statements, transfer receipts, communications, employment records, loan documents, and other materials explaining the source and destination of funds.

Prepare a chronological record identifying when each payment entered the account, who operated the account, where the money was transferred, and whether any compensation was received.

Original electronic records should be preserved without deletion or alteration.

 

 2. Avoid Actions That Could Complicate the Investigation 

➡︎ Do not privately pressure victims or other individuals involved to withdraw complaints, change statements, or coordinate explanations.

➡︎ Do not attempt to move restricted funds or conceal relevant property.

If investigators request questioning, devices, or financial information, first confirm the person's procedural status, the authority responsible, and the legal basis and scope of the requested action.

 

 3. Seek Legal Assistance When Necessary 

Chien Sheng International Law Firm assists clients with criminal defense matters involving money laundering investigations, financial evidence, police questioning, searches, seizures, account restrictions, and property preservation.

Legal counsel may examine whether the evidence supports allegations of money laundering, fraud, aiding fraud, or unlawful provision of financial accounts.

The appropriate defense strategy depends on the individual's actual conduct, knowledge, and the complete case record.

 

7. Frequently Asked Questions About Money Laundering Investigations in Taiwan

 Q1: Does a flagged bank account mean I have committed money laundering? 

No. A flagged account is a financial control measure associated with an investigation, not proof of criminal guilt.

 Q2: What happens when police investigate a suspected money laundering case? 

Police may examine financial transactions, account ownership and control, communications, withdrawals, and the involvement of other individuals.

 Q3: Can police seize my phone or computer during a money laundering investigation? 

Potentially, yes. Devices and electronic records relevant to the investigation may be seized under applicable criminal procedure requirements.

 Q4: Can cryptocurrency be investigated in a money laundering case? 

Yes. Investigators may examine cryptocurrency exchange accounts, wallet addresses, blockchain transactions, and related financial records.

 Q5: Will I automatically be prosecuted after receiving a police notice? 

No. Prosecutors must evaluate the evidence and may decide to indict, issue a non-prosecution disposition, or grant deferred prosecution where permitted by law.

 Q6: Can providing a bank account lead to criminal liability? 

Yes, depending on the circumstances. The legal analysis may involve Article 22 of the Money Laundering Control Act, aiding fraud, money laundering, or other offenses.

 Q7: Can I remain silent during police questioning in Taiwan? 

If questioned as a criminal suspect, you have the right to remain silent and retain defense counsel under Taiwan's criminal procedure rules.

 

8. Conclusion: A Money Laundering Investigation Does Not Automatically Mean Conviction

Money laundering investigations in Taiwan may involve flagged bank accounts, police questioning, financial tracing, searches, seizures, prosecutorial review, and criminal trials.

However, each stage serves a different legal purpose.An account restriction is not a conviction, a police interview does not automatically lead to detention, and referral to prosecutors does not necessarily result in indictment.

➡︎ The central issues are whether the evidence establishes the relevant financial transactions, the individual's actual role, and the required elements of the alleged offense.

Individuals facing a money laundering investigation should preserve complete financial and communication records, understand their procedural rights, and obtain legal assistance when necessary.

 

※ This article provides general legal information about Taiwan's money laundering investigations and criminal procedure. It does not constitute individualized legal advice or guarantee any particular case outcome.