謙聖國際法律事務所

1. What Changed Under Taiwan's 2026 Fraud Crime Hazard Prevention Act?

1.1 Article 43: Three Sentencing Thresholds for Aggravated Fraud

Taiwan strengthened its anti-fraud legislation to address increasingly serious financial losses arising from organized and large-scale fraud schemes. The amended Article 43 of the Fraud Crime Hazard Prevention Act establishes three enhanced sentencing levels for offenses satisfying Article 339-4 of the Criminal Code. The applicable penalties are determined by the value of the property or financial benefits fraudulently obtained from victims.

The three statutory thresholds are:

• NT$1 million or more: Three to ten years' imprisonment, with a possible additional fine of up to NT$30 million.

• NT$10 million or more: Five to twelve years' imprisonment, with a possible additional fine of up to NT$300 million.

• NT$100 million or more: Imprisonment for at least seven years, with a possible additional fine of up to NT$500 million.

The higher tiers apply when the legally established amount reaches the relevant threshold. For example, an aggravated fraud offense involving NT$1.2 million may fall within the first enhanced tier, while an offense involving NT$12 million may fall within the second tier. However, the amount must be established according to the applicable criminal law and evidence. It cannot be determined solely by the prosecution's description of the case.

➠The enhanced penalties also require the underlying conduct to satisfy the relevant statutory elements of aggravated fraud.

1.2 How Article 43 Differs from Criminal Code Article 339-4

Article 339-4 of Taiwan's Criminal Code generally provides imprisonment of one to seven years for aggravated fraud. This provision covers specified aggravating circumstances, such as fraud committed jointly by three or more persons or other conduct described in the statute. Article 43 of the Fraud Crime Hazard Prevention Act establishes additional, more severe punishment where the statutory monetary thresholds are met.

The distinction is particularly important for defendants seeking a suspended sentence.

Under Article 74 of the Criminal Code, a suspended sentence generally requires a pronounced sentence of imprisonment of two years or less, together with the other statutory conditions. When the applicable minimum sentence is three years, the court ordinarily cannot impose a sentence of two years or less without a legally available basis for reducing the punishment. As a result, defendants accused of aggravated fraud involving at least NT$1 million must carefully examine both the amount involved and the applicability of statutory mitigation provisions.

🚨The effective date of the relevant law and the date of the alleged conduct also matter. For offenses committed before a legislative amendment, the applicable rules must be assessed under Taiwan's principles governing changes in criminal law.

2. How Do Higher Fraud Penalties Affect Criminal Court Proceedings?

2.1 Summary Proceedings and Ordinary Criminal Trials

One important consequence of the enhanced sentencing framework concerns the procedure used to hear criminal cases.

Taiwan's summary criminal procedure is generally intended for cases in which the statutory requirements permit a simplified judicial process. Under the Code of Criminal Procedure, summary judgments are subject to limitations, including restrictions on the offenses and penalties that may be handled through that procedure.

Where Article 43 imposes a statutory minimum of three years' imprisonment, the offense cannot ordinarily be disposed of through the usual summary judgment procedure. Instead, the case generally proceeds through an ordinary criminal trial. This may involve more extensive examination of evidence, witness testimony, legal arguments, and sentencing issues. The resulting proceedings may take longer and require more detailed defense preparation.

➠The exact procedure still depends on the charges, applicable law, and procedural circumstances of the case.

2.2 Mandatory Defense Counsel and Collegiate Court Proceedings

Serious fraud charges may also trigger procedural protections concerning legal representation.

Under Article 31 of the Code of Criminal Procedure, mandatory defense counsel requirements apply to specified criminal cases, including offenses carrying a statutory minimum punishment of at least three years' imprisonment. Where the requirements are met and the defendant has not retained counsel, the court must arrange the legally required defense representation. The applicable rules may involve court-appointed defense counsel or assistance through the legal aid system. Cases involving offenses subject to the enhanced penalties may also require collegiate adjudication under the applicable procedural provisions.

These requirements reflect the seriousness of criminal proceedings involving substantial potential imprisonment. For defendants, legal representation becomes particularly important when the prosecution's calculation of the fraud amount determines whether the case falls within a more severe sentencing category.

2.3 Stricter Parole Requirements Under Article 49

Article 49 of the Fraud Crime Hazard Prevention Act establishes stricter parole requirements for persons serving imprisonment for covered fraud offenses.

Under the provision, an eligible prisoner generally must have served more than two-thirds of the sentence before parole may be considered. For repeat offenders meeting the statutory definition, the threshold increases to more than three-quarters of the sentence. The law also provides circumstances in which parole is unavailable, including specified repeat fraud offenses.

Serving the required proportion of a sentence does not guarantee parole. The prisoner must also satisfy the relevant requirements concerning rehabilitation, eligibility, and administrative review.

➠For defendants facing substantial prison sentences, these provisions can materially affect the period of imprisonment that may actually be served.

3. Why Is the NT$1 Million Fraud Threshold So Important?

3.1 Challenging the Calculation of Fraudulent Property or Benefits

The calculation of the amount involved in an aggravated fraud case has become one of the most important issues in criminal defense.

Under the ordinary sentencing framework of Article 339-4, the difference between NT$900,000 and NT$1.2 million may influence the sentence imposed within the applicable statutory range. Under Article 43, however, crossing the NT$1 million threshold may change the minimum sentence from one year to three years. This makes accurate calculation essential.

For example, prosecutors may allege that a defendant participated in fraud involving NT$1.1 million. Defense counsel should examine the evidence supporting that amount, including bank transfers, withdrawal records, victim statements, and the relationship between each transaction and the charged offense. The central question is not merely how much money passed through an account. It is whether the property or financial benefit included in the calculation satisfies the legal requirements for the particular offense charged.

If the prosecution cannot prove that the amount attributable to the relevant offense reaches NT$1 million, Article 43's first enhanced sentencing tier may not apply. This determination must be based on the evidence and correct legal classification rather than an arbitrary reduction of the alleged amount.

3.2 Distinguishing Completed Fraud, Attempted Fraud, and Civil Disputes

Not every financial transaction associated with a criminal investigation necessarily represents property fraudulently obtained through a completed offense. For example, the evidence may involve attempted transfers, preparatory conduct, disputed private loans, or transactions whose connection to fraudulent conduct has not been established. These circumstances require separate legal analysis.

An attempted fraud offense must be distinguished from completed fraud according to the applicable statutory elements. Similarly, a private debt dispute does not automatically constitute criminal fraud merely because one party fails to repay money. The prosecution must establish the required fraudulent conduct and criminal intent.

Defense counsel should therefore examine whether each amount included in the prosecution's calculation is legally attributable to the charged offense. If the evidence establishes an amount below NT$1 million, the enhanced penalty under Article 43 may be inapplicable to that offense.

⚠️However, the existence of multiple transactions, multiple victims, or related offenses may require further analysis before a final conclusion can be reached.

4. Multiple Victims and Repeated Transactions: How Are Fraud Amounts Calculated?

4.1 Single Offenses, Continuing Conduct, and Separate Crimes

Fraud investigations often involve repeated withdrawals, multiple transfers, or several victims.

In some cases, prosecutors may argue that a series of acts constitutes a single criminal offense. In other cases, separate acts may constitute multiple offenses based on their respective criminal intentions, victims, and factual circumstances. The distinction is important because the legal characterization of the conduct may affect how the relevant fraud amount is determined.

For example, a defendant may have participated in several transactions involving different victims. The court must determine whether those transactions legally constitute one offense, several offenses, or another form of criminal concurrence. It is not enough to assume that all transactions occurring during the same period must be combined into one offense.

Nor can defendants automatically demand that transactions be separated simply because doing so would result in a lower monetary amount for each charge.

➠The classification must follow the applicable principles of Taiwan criminal law and the established facts.

4.2 Why Separating Charges Does Not Automatically Reduce Punishment

Where the prosecution aggregates several amounts and the total exceeds NT$1 million or NT$10 million, defense counsel may need to examine whether the legal basis for aggregation is correct. If the transactions involve legally distinct offenses, the amount attributable to each offense may require separate determination.

However, treating conduct as multiple offenses can also increase criminal exposure. Each separate offense may carry its own sentence, and the court may subsequently determine the combined sentence to be executed under the rules governing multiple offenses. Therefore, separating charges does not necessarily produce a shorter total period of imprisonment.

A defendant could face several convictions even where the monetary amount attributed to each offense falls below the enhanced threshold. The defense must compare the consequences of the available legal classifications, including individual sentences, combined punishment, applicable mitigation provisions, and the facts supporting each charge.

💡The objective is to ensure that the conduct is legally characterized correctly, not to artificially divide transactions for sentencing purposes.

5. Can Defendants Still Obtain a Suspended Sentence for Fraud Over NT$1 Million?

5.1 Why Settlement and Compensation May Be Insufficient

Settlement with victims and compensation for financial losses remain important considerations in Taiwan fraud cases. They may demonstrate efforts to repair the harm caused and may be relevant to sentencing.

However, settlement does not automatically eliminate criminal liability or guarantee a suspended sentence.

Where Article 43 applies and the minimum sentence is three years, the court generally cannot impose a suspended sentence unless a legally available reduction brings the pronounced sentence within the statutory eligibility requirements. Under Article 74 of the Criminal Code, a suspended sentence generally requires a pronounced sentence of imprisonment of no more than two years, along with the other applicable conditions. Consequently, even full compensation and victim forgiveness may not be sufficient if the applicable statutory minimum remains above two years.

The defense must consider whether the defendant qualifies for a specific statutory sentence reduction. Relevant factors may include the defendant's conduct after the offense, the timing of any confession, the terms of a settlement, and the availability of mitigation under the Fraud Crime Hazard Prevention Act or Criminal Code.

5.2 Criminal Code Article 59 and Exceptional Sentence Reduction

Article 59 of Taiwan's Criminal Code permits discretionary sentence reduction where the circumstances of an offense are clearly deserving of compassion and even the statutory minimum sentence would be excessively severe.

This is an exceptional form of mitigation rather than a routine sentencing benefit. For example, defense counsel may argue that a defendant played a minor role in a fraud organization, exercised little decision-making authority, received limited financial benefit, or participated under circumstances substantially different from those of the organizers. However, low-level participation or financial hardship does not automatically satisfy Article 59.

The court must evaluate the overall circumstances and determine whether the statutory requirements for exceptional mitigation are met. Where a three-year minimum sentence is reduced by one-half under Article 59, the resulting reduced minimum may be one year and six months. This may create a legal possibility of imposing a sentence of two years or less. A suspended sentence would still require the court to pronounce an eligible sentence and find that the other conditions under Article 74 are satisfied.

➠Therefore, Article 59 can be an important defense consideration, but its application and the granting of a suspended sentence are not guaranteed.

6. Sentence Reductions Under Taiwan's Fraud Crime Hazard Prevention Act

6.1 Article 46: Voluntary Surrender and Victim Compensation

Article 46 of the Fraud Crime Hazard Prevention Act provides a potential reduction or exemption from punishment for qualifying voluntary surrender and compensation.

Under the amended provision, a person who voluntarily surrenders after committing a covered fraud offense and pays the full amount agreed upon through mediation or settlement within six months from the date of surrender may qualify for a reduction or exemption from punishment. The provision also addresses circumstances involving assistance that leads to the identification of organizers or leaders of a fraud organization, or the seizure of all property or financial benefits obtained by the organization from victims.

The precise statutory requirements must be satisfied. Voluntary surrender has a specific legal meaning and should not be confused with merely admitting guilt after investigators have already identified the suspect. The timing of surrender, settlement, and payment may therefore become critical.

🚨Defendants should carefully review whether their conduct qualifies under Article 46 rather than assuming that any confession or repayment automatically produces the same result.

6.2 Article 47: Confession, Settlement, and Cooperation

Article 47 provides another potential route to sentence reduction.

Under the amended provision, a defendant who confesses during the investigation and throughout successive trials and pays the full amount agreed upon through mediation or settlement within six months from the first confession during the prosecutorial investigation may qualify for a sentence reduction. Additional mitigation or exemption may be available where the statutory conditions concerning the identification of fraud organization leaders or recovery of the organization's proceeds are satisfied.

The requirements concerning the timing and continuity of confession are particularly important. A defendant who admits guilt at one stage but changes the account at another may face questions concerning eligibility. Likewise, a settlement agreement alone may be insufficient if the required payment is not completed within the statutory period.

The defense should therefore assess Article 47 at an early stage of the proceedings. Any decision concerning confession, cooperation, or settlement should be made after examining the evidence and the defendant's actual legal position.

7. Frequently Asked Questions About Fraud Over NT$1 Million in Taiwan

Under Article 43 of the Fraud Crime Hazard Prevention Act, aggravated fraud involving property or financial benefits of at least NT$1 million is punishable by three to ten years' imprisonment, with a possible additional fine of up to NT$30 million, where the statutory requirements are satisfied.

For qualifying aggravated fraud involving at least NT$10 million, Article 43 provides imprisonment of five to twelve years and a possible additional fine of up to NT$300 million.

It may be legally possible if an applicable sentence reduction allows the court to impose imprisonment of two years or less and the other requirements for a suspended sentence are satisfied. Settlement alone does not guarantee this result.

No. Compensation may be relevant to sentencing, but statutory mitigation provisions may require additional conditions, including specific deadlines, confession, or voluntary surrender.

Yes. The defense may examine whether each amount is supported by evidence and legally attributable to the charged offense. The correct amount may determine whether an enhanced sentencing threshold applies.

Depending on the facts and applicable legal principles, conduct involving different victims or separate criminal intentions may constitute multiple offenses. However, separate convictions may increase the combined punishment and do not automatically benefit the defendant.

A money mule may request consideration under Article 59 where the statutory requirements are satisfied. The court must find circumstances clearly deserving of compassion and that the statutory minimum would be excessively severe. A minor role alone is not sufficient.

The amended Article 47 requires qualifying confession during the investigation and successive trials, together with full payment of the agreed settlement or mediation amount within six months from the first confession during the prosecutorial investigation.

Yes. Article 49 generally requires more than two-thirds of the sentence to be served before parole may be considered, or more than three-quarters for qualifying repeat offenders. Additional statutory restrictions may apply.

Legal assistance is particularly important because the amount involved may determine the applicable statutory minimum, trial procedure, and available mitigation strategies. Certain serious cases also fall within mandatory defense counsel requirements.

8. Conclusion: Effective Fraud Defense Requires More Than Settlement

Taiwan's 2026 amendments to the Fraud Crime Hazard Prevention Act have significantly increased the sentencing consequences of aggravated fraud involving substantial financial losses.

Under Article 43, the statutory minimum increases to three years when the qualifying amount reaches NT$1 million, five years at NT$10 million, and seven years at NT$100 million. These thresholds make the calculation of the amount involved a central issue in criminal defense.

For defendants accused of participating in fraud organizations, money mule operations, or repeated fraudulent transactions, the legal classification of each offense and the evidence supporting the alleged amount may materially affect the sentencing range. The previous approach of relying primarily on victim compensation, settlement, and forgiveness may no longer be sufficient to make a suspended sentence legally available. Defense counsel must also evaluate the defendant's actual role, criminal intent, financial records, possible sentence reductions, and the rules governing multiple offenses.

Articles 46 and 47 of the Fraud Crime Hazard Prevention Act may provide mitigation where their specific requirements are satisfied, while Article 59 of the Criminal Code may apply in exceptional cases deserving of leniency.

However, none of these provisions guarantees a reduced sentence or suspended sentence. An effective defense requires careful examination of the evidence, accurate application of the relevant criminal laws, and a strategy tailored to the defendant's individual circumstances.

🧑🏻‍⚖️Chien Sheng International Law Firm provides criminal defense assistance in fraud, money laundering, and related financial crime cases throughout Taiwan. If you are facing an aggravated fraud investigation or prosecution involving more than NT$1 million, our attorneys can assist in evaluating the alleged amount, identifying relevant evidence, examining possible sentence reductions, and developing an appropriate defense strategy.

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