TAIPEI (TVBS News) — The Ministry of Digital Affairs (MODA, 數發部) announced on Tuesday (Oct. 8) a draft regulation aimed at combating fraud in third-party payment services. The proposed measures allow service providers to delay disbursements for at least 15 days if they suspect a client of fraud and require them to report to judicial authorities.
Third-party payment companies such as ECPay (綠界) and NewebPay (藍新) currently follow contractual agreements for fund disbursement. However, once fraud occurs, tracing the funds becomes challenging. The ministry intends to enforce a 30-day public consultation period for the draft, encouraging companies to adhere to reporting procedures and retain identity verification data and transaction records.
Previously, companies typically handled suspicious transactions contractually. The new draft empowers them to proactively assist in fraud prevention. Upon identifying potential fraud, companies can suspend services or delay payments after conducting Know Your Customer (KYC) procedures, informing judicial authorities for further confirmation.
The draft regulation mandates companies to enhance identity verification processes and maintain transaction records, keeping fraud-related data for at least five years. Failure to properly preserve these records could result in fines ranging from NT$100,000 to NT$2 million, with severe cases facing penalties between NT$500,000 and NT$10 million.
Set to take effect on Jan. 1, the regulation applies to all third-party payment providers. The ministry has already engaged with industry stakeholders, indicating potential adjustments to the details. This initiative underscores the government's commitment to strengthening fraud prevention mechanisms in Taiwan's digital payment landscape.
