Taiwan allows banks to temporarily freeze foreign nationals' accounts to curb fraud

台灣允許銀行暫時凍結外國公民的帳戶以遏制詐騙行為。

TAIPEI (Taiwan News) — Taiwan’s Financial Supervisory Commission announced that banks can temporarily freeze certain foreign nationals’ accounts to curb fraud, CTEE reported Tuesday.

The decision follows findings by the National Police Agency that bank accounts belonging to foreign nationals are frequently exploited as so-called “mule accounts” after the account holders leave Taiwan. Such accounts are often used by fraud syndicates to receive illicit funds before the money is quickly withdrawn, according to the Judicial Reform Foundation.

Banks will coordinate with the National Immigration Agency, which provides departure records to verify whether a foreign national meets any of four conditions. These include leaving Taiwan after the end of an employment period, departing following termination of an employment contract, being reported missing, or being detained after being caught working illegally following unlawful entry.

Once verified, the bank will temporarily freeze the account, blocking transactions without permanently closing it. Foreign nationals who later return to Taiwan may apply to their bank to have the account unfrozen.

Foreign nationals who leave Taiwan may still receive funds such as tax refunds or labor subsidies. Authorities are exploring solutions such as delivering these payments through intermediary agencies.

In Taiwan, a “mule account” is a bank account obtained by fraudsters from third parties, often without the holder’s knowledge. Victims are instructed to transfer money into these accounts, which is then quickly withdrawn by accomplices.