Taiwanese financial institutions have been authorised to suspend accounts belonging to foreign citizens who have exited the country under specific conditions, CNA reports. According to the Financial Supervisory Commission, this measure targets accounts prone to becoming "mule" tools for criminal syndicates. This directive applies to individuals who have finished employment contracts, been reported as missing, or faced detention for immigration violations.

This regulatory shift is a crucial response to Taiwan’s escalating battle against cross-border financial crime, where the abandonment or sale of bank accounts by departing workers has created a significant loophole for money laundering networks.

The initiative began in January and requires banks to verify account holders against National Immigration Agency records. While the policy covers all nationalities, it predominantly addresses the misuse of accounts previously held by Southeast Asian migrant workers. Previous concerns regarding outstanding tax rebates or government subsidies have been resolved by allowing these funds to be processed via cashier’s cheques through employment agencies.

The speed of these freezes depends on individual bank reviews and data synchronisation. By proactively monitoring these high-risk profiles, the government aims to cripple the infrastructure used by fraud rings. This move successfully balances the need for robust security with the logistical requirements of departing personnel.