Telephone
02-77093611
Line
@fdlaw
address
17th Floor, No. 180, Section 2, Dunhua South Road, Da'an District, Taipei City
BANKING ACT · FINANCIAL CRIME DEFENSE
Banking Lawyer | Defense in Violations of Banking Law, Illegal Fundraising, Underground Money Exchange, and Major Financial Criminal Cases
Criminal cases involving banking are often not simply about "investment failures" or "financial disputes." Prosecutors may simultaneously investigate the targets of fundraising, investment contracts, promised returns, actual company operations, bank transactions, group chats, business solicitation, the actual person in charge, and whether each participant had the intent and conduct to jointly raise funds.
Fidelity Law Firm handles major financial, corporate criminal, and banking cases, ranging from investigation bureau searches, district prosecutor's office interrogations, and detentions, to reorganizing cases involving fundraising models, investor relationships, and large sums of money. While banking cases carry serious penalties, simply stating that "received investment funds," "introduced investment," or "the company ultimately suffered losses" cannot replace concrete evidence for each element of the crime.
If suspected of illegal fundraising or violating banking laws, first confirm five core issues.
Is the legal relationship of receiving funds investment, loan, equity, commodity transaction, or actual absorption of funds?
Is the funding raised from a specific few people, or does it involve a large number of people or unspecified individuals?
What exactly were the promised compensation, returns, interest, dividends, or principal arrangements to the outside world?
Am I the company's head, financial decision-maker, salesperson, introducer, or finance personnel, or am I only involved in a portion of the process?
If a search or questioning has already taken place, what is most urgent at present: the initial statement, evidence of financial transactions, or the detention proceedings?
What major criminal cases related to banking law does Fidelity Law Firm handle?
Illegal fundraising and illegal acceptance of deposits
Analyze whether the investment, loan, shareholder participation, or other fundraising methods comply with the deposit-receiving behavior regulated by Articles 29 and 29-1 of the Banking Law.
Investment plans and high returns
It addresses disputes concerning fixed income, dividends, interest, principal protection arrangements, and other investment returns, distinguishing between general commercial investments and criminal risks under banking law.
underground money exchange and illegal money exchange
Handling criminal issues related to non-bank entities engaged in domestic and international fund transfers, collection and payment on behalf of others, cross-border fund exchanges, and related accounts and cash flows.
Virtual assets and new fundraising methods
For virtual currencies, platform investments, tokens, membership systems, or other new funding models, determine whether they involve illegal fundraising, foreign exchange transactions, or other financial crimes.
Company leaders and business personnel
Distinguish between the degree of involvement and individual criminal liability of the actual person in charge, directors, senior executives, salespersons, introducers, and financial personnel.
Search, detention, and major financial criminal cases
Handling matters such as being interviewed by the Investigation Bureau, company searches, seizures, questioning by the District Prosecutor's Office, applications for detention, bail, restrictions on residence, and subsequent court trials.
Why are criminal cases involving banking laws not limited to "banks"?
When people see the "Banking Law," they often think that only banks or financial institutions can break the law.
In reality, major banking criminal cases often occur involving ordinary companies, investment platforms, business leaders, business teams, virtual asset operators, or private fund arrangements.
in forceArticle 29 of the Banking Law, in principleNon-bank operations are prohibited:
Accepting deposits; managing trust funds or public property on behalf of others;
And domestic and foreign exchange business.
Therefore, in criminal cases, what really matters is not whether the company name is "bank".
Instead:
Whether the actual financial activities conducted have the nature of banking business prohibited by law.
For more common patterns, please refer toIllegal fundraising, underground money exchange and common criminal liabilities under banking law.
Article 29-1 of the Banking Act: Receiving money under the guise of "investment" may also be considered as receiving deposits.
Handling under Article 29-1 of the Banking ActThis is a common situation: for relevant constituent elements and case file judgment, please refer to...A complete defense summary of Articles 29, 29-1, and 125 of the Banking Act..
It is not officially a "deposit".
Instead, use:
Borrowing money; receiving investment; making someone a shareholder;
or under other names
Receiving money or raising funds from a large number of people or unspecified individuals.
If both are agreed upon or paid simultaneously:
Bonuses, interest, dividends, or other compensation that are disproportionate to the principal.
The law stipulates:
It is considered as receiving deposits.
Therefore, in banking law cases, one cannot only look at the name of the contract.
The contract states:
"invest"
"cooperate"
"shareholder"
"loan"
This does not necessarily exclude banking laws.
What really needs to be analyzed is the economic substance of the entire fundraising model.
Not all investment fundraising is equivalent to illegal fundraising.
This is equally important.
Businesses are inherently likely to:
Finding shareholders; raising investment; borrowing money; making joint investments;
Develop new undertakings.
It cannot be because:
Someone invests money; the company promises to share the profits;
Ultimately, the investment failed.
This would directly constitute a violation of banking laws.
Article 29-1 of the Banking Law still has specific legal requirements.
For example, analysis is required:
Target investors; methods of fundraising; number of participants and characteristics of the target investors; legal relationship regarding funds; remuneration commitment; principal arrangement; actual business model;
Do investors truly bear the business risks?
The core of a criminal case is not:
"Did the company collect a lot of money?"
Instead:
How exactly was this money absorbed, from whom, and under what conditions?
Why is "the majority or unspecified persons" a key point of contention in banking law cases?
Article 29-1 of the Banking Act explicitly states:
"The majority of people or unspecified people".
Therefore, the target of the fundraising is one of the major points of contention.
To be organized:
How many funding providers were there in total; what were their original relationships with each other and the company or defendant; was it a private, specific negotiation or a continuous public recruitment;
Whether or not:
LINE groups; Facebook; website; information sessions; business team; referrals from friends;
Investor referrals
Expand fundraising.
Whether the contracts and remuneration terms of different fund providers are the same can also be important evidence.
It is not possible to process all remitters using only one "investor" label.
"Disproportionate compensation" does not automatically constitute a crime simply because the reward is high.
The legal wording used in Article 29-1 of the Banking Law is not simply:
"There is a reward"
or:
"The pay is very high."
Instead:
Bonuses, interest, dividends or other compensation that are disproportionate to the principal.
Therefore, we need to return to the analysis of the actual solution:
Principal; Rate of return; Payment period; Market risk; Whether the principal is returned; Whether the investment actually incurs losses;
The actual source of business revenue.
"Guaranteed principal and interest" or "fixed returns" can be very important evidence in criminal investigations.
However, a single promotional phrase cannot replace a complete analysis of the constituent elements.
How severe are the penalties under Article 125 of the Banking Law?
Those who violate Article 29, Paragraph 1 of the Banking Law
Article 125, Paragraph 1 of the current Banking Law stipulates:
He shall be sentenced to imprisonment for not less than three years but not more than ten years, and may also be fined not less than NT$10 million but not more than NT$200 million.
if:
The amount of money or property obtained through crime exceeds NT$100 million.
The statutory penalty is then increased to:
imprisonment for seven years or more
They may also be subject to a fine of between NT$25 million and NT$500 million.
Therefore, cases of illegal fundraising under banking laws are likely to be major criminal cases from the very beginning.
But a special distinction must be made:
Total amount raised; Transaction amount; Investor remittances; Company receipts;
and:
Property or property benefits obtained through crime as defined by law.
These figures should not be considered as the same thing without legal analysis.
Does an investment exceeding 100 million yuan necessarily warrant a sentence of seven years or more?
We cannot only see:
The company received a total of 100 million yuan.
The direct conclusion is that the aggravated provisions of Article 125 of the Banking Law must apply.
The current law uses:
"Property or property obtained through crime".
Therefore, the actual case must be confirmed:
How did the prosecution calculate the amounts? Which funds were included? How were the funds allocated among the different defendants? Were all the funds related to the alleged crimes?
And how should the law define property or benefits obtained through crime?
This is often not just a matter of sentencing.
It may also have a direct impact on:
Applicable statutory penalties.
Why might underground money transfers be subject to banking laws?
Article 29 of the Banking Law also prohibits non-banks from engaging in domestic and foreign exchange business without legal authorization.
Practical cases may involve:
Receive New Taiwan Dollars in Taiwan; Deliver foreign currency overseas; Offshore account reconciliation; Cross-border value transfer for others; Long-term private currency exchange services;
Use multiple accounts to receive and make payments.
However, not every exchange of money between friends or a single transfer of funds can be directly equated with "operating an underground money exchange business".
Further analysis is still needed:
Trading patterns; frequency; frequency; fees or exchange rate spreads; client sources; account control; cash flow;
And whether it actually has the nature of engaging in foreign exchange business.
Do virtual currencies, investment platforms, or new financial models necessarily violate banking laws?
uncertain.
use:
Virtual currency; blockchain; platform; token; membership; AI investment;
Quantitative Trading
Neither of them constitutes a crime under banking law simply because of their name.
The real question is:
How exactly does the platform collect money?
To whom should the funds be given?
Is the solicitation made to the majority or the general public?
Does it promise returns that are clearly disproportionate to the principal?
Does it actually engage in foreign exchange transactions?
Does the company actually have any operations?
What risks do investors actually bear?
Scientific and technological terms cannot replace the legal elements constituting a major financial criminal case.
Must the company's head be held accountable for all fundraising activities?
You can't just look at the professional titles listed on the company registration.
The criminal case still needs to be confirmed:
Who designs the investment plan; who decides the compensation terms; who controls the funds; who approves payments; who manages the business team; and who decides the content of external communications?
Who actually controls the company's operations?
Formal person in charge, actual person in charge, director, manager or other participant,
They may be completely different in terms of criminal liability.
However, if the volume already contains:
Company instructions; dialogue; contract; payment; meeting; business training;
Account Control
Proof of actual participation cannot be proven solely by:
"I wasn't the one who actually recruited them."
As the sole respondent.
The determination of corporate organization and individual liability also involvesCorporate Criminal and White-Collar Criminal LawyersThe scope of case handling.
Can salespeople or those who introduce investments violate banking laws?
This is a very common issue in large-scale fraud cases involving banks.
A person may simply be:
Introduce friends; forward investment information; attend seminars; collect commissions; act as a salesperson;
Assist with signing the contract.
These actions alone cannot be used to determine whether they constitute joint criminal acts under banking law.
Further analysis is needed:
Did they know the entire fundraising model? Were they aware of the promised compensation? Were they continuously recruiting? Did they share a common criminal intent? How many people were actually recruited? Did they receive commissions? Did they participate in the handling of funds?
Whether or not they participate in internal decision-making.
Salespeople, introducers, company executives, and financial decision-makers cannot all use the same set of criminal stories.in,Individual criminal liability of salespersons, intermediaries, and commission-based agents in banking law casesThe assessment should be based on the level of knowledge, solicitation, commission, and financial participation.
If a company truly invests and operates, why might it still be accused of illegally raising funds?
Actual operation is a very important fact.
However, it cannot determine whether a banking law is valid on its own.
The prosecution may still argue that:
Even if the company does have investments
Its fundraising method still complies with Article 29-1 of the Banking Law.
in turn,
If the company has complete:
Actual business operations; revenue; investment targets; risk disclosure; investor participation; profit and loss distribution;
Company Accounts
This information may also help the court understand:
The real business model
and:
The money-making model mentioned by the prosecution
Are they the same thing?
Therefore, a defense of banking law cannot simply state:
"Our company is real."
To further prove:
A true trading and investment structure.
Why is cash flow particularly important in banking law cases?
Major cases of embezzlement often involve a large number of cases:
Bank accounts; investor remittances; company accounts; private accounts; commissions; refunds; dividends; reinvestment;
Related company funds.
The prosecution will attempt to answer this through financial transactions:
Who received the funds?
Where does the money go?
Where will the payment come from?
Is it using money from later investors to pay earlier investors?
Who ultimately controls the funds?
But cash flow can only prove:
How does money move?
Not necessarily proven individually:
What the investor was informed of at the time; the legal relationship; the extent of their knowledge;
Or all participants share a common criminal intent.
Therefore, a true defense should include:
Cash Flow + Contract + Solicitation Content + Actual Operations + Defendant Role
Put them together.
What is the worst thing to do in a banking law case after a Bureau of Investigation (BCI) search?
Major cases of illegal fundraising often begin with a search.
The company, the residence of the person in charge, and the business or financial personnel may be searched at the same time.
Do not do this at this time:
Delete investment groups; delete LINE or email addresses; modify investment documents; create new contracts that did not exist previously; require sales staff to provide consistent statements;
They asked the other defendants "how they answered today".
These actions may escalate the original substantive criminal dispute.
Add:
Destroying evidence; fabricating evidence;
Detention
Procedure risks, etc.
Save first:
Search warrant; list of seized items; subpoena; existing contract;
Group and original cash flow data.
Company executives summoned by the investigation bureau or company searched.
The search, the initial confession, and the subsequent trial are all...Major criminal cases and criminal defenseAn important procedure.
Why might someone be detained in a banking law case?
Large-scale fraud cases often involve procedural risks associated with banking law cases; see reference [link/reference needed]Defense and offense in banking law cases involving search, detention, custody, and bail..
Large number of participants; large number of investors; huge cash flow; business team; electronic data; hierarchical structure within the company;
offshore accounts
Features such as...
The prosecutor may therefore argue that:
Escape; collusion;
Destroy evidence
risk.
but:
Banking law cases do not necessarily mean detention.
The court still needs to rely onCriminal Procedure Lawjudge:
Suspected criminal; specific reasons for detention;
And the necessity of detention.
if:
Key accounting books have been seized; mobile phones and computers have been confiscated; bank transaction records can be obtained from financial institutions; inquiries with major investors have been completed.
The defendant is willing to accept travel restrictions or other measures.
These could all become part of the debate over the necessity of detention.
What are the five lines of evidence that should be established in the defense of major banking law cases?
1. Fundraising Model
Who to solicit funds from, how to recruit them, whether to continuously solicit funds publicly, and how to acquire each type of investor.
2. Contracts and Remuneration
Investment, loan, equity or other legal relationships; how the principal and remuneration are agreed upon, and who decides the relevant terms.
3. Actual Operation
What business does the company actually engage in, the actual use of funds, investment targets, operating income, and risk-bearing?
4. Cash Flow
How funds move between investment funds, refunds, dividends, commissions, company accounts, private accounts, and related businesses.
5. Individual Role
What did the person in charge, directors, salespersons, introducers, financial personnel, and other participants actually know and do?
Banking law cases carry serious penalties, but each crime must still be proven individually.
Fidelity Law Firm does not only analyze major financial cases from the perspective of legal provisions. Our lawyer, Yu-Sheng Lee, has served as the selected defense counsel in major corporate financial criminal cases. The cases mainly involved disputes over Article 9 of the Company Act, Article 71, Paragraph 5 of the Commercial Accounting Act, and Article 214 of the Criminal Code. After appeal to the second instance, the Taiwan High Court overturned the original judgment and declared him not guilty.
Major corporate financial cases often involve years of shareholder or investor fund transactions, bank statements, company books, financial accounting data, and testimonies from multiple individuals. A crucial aspect of effective defense is to dissect different transactions and different defendants, rather than simply accepting a single, pre-existing criminal narrative prepared by the prosecution.
Each case should be judged based on individual facts and evidence. The reasons for the acquittal in this case have been separately compiled into a case study in a de-identified manner; the main charges were related to company law, commercial accounting law, and causing public officials to make false entries, not banking law cases.
Related cases can also be learned about.Defense in Major Financial Criminal Cases and Securities Exchange LawThis firm has other [information/resources].Lawyer Li Yusheng's Legal Commentary on Banking Fraud Cases (Media).
Why is it necessary to understand criminal, corporate, contractual, and financial information simultaneously in banking law cases?
The core of banking law cases often goes beyond just criminal law provisions; it's about how the company actually raises and uses funds. Lawyers need to understand investment agreements, equity structures, company books, bank statements, business solicitations, group messages, and actual operations to determine whether the prosecution's alleged illegal fundraising scheme truly holds true.
Company and Investment Structure
The equity, investment, borrowing, fundraising model, and actual operation of the company were reconfirmed.
Cash Flow and Financial Data
Organize bank accounts, investment funds, commissions, refunds, returns, and the final destination of funds.
Criminal Procedure and Evidence
Handling interviews and searches by the Investigation Bureau, interrogations and detentions by the District Prosecutor's Office, document review, and courtroom disputes.
Lawyer Li YushengHe previously served as the legal director of a large accounting firm, handling corporate, criminal, financial accounting, and major business cases for many years.
Have you received a banking law subpoena, a notice from the investigation bureau, or had your company searched?
If the case involves investment fundraising, illegal fundraising, underground money transfer, or other criminal issues related to banking law, you can first organize the notification documents, company roles, main investment plans, contracts, external statements, and currently known cash flows, and then determine the most important issues to address during the first interrogation, detention, or subsequent criminal defense.
In which situations should it not be dealt with until after a lawsuit is filed?
Received notification from the Investigation Bureau;
Received a summons from the District Attorney's Office;
Company or residence searched;
Bank accounts, mobile phones, or computers have been seized;
The company is accused of illegally raising funds;
The case involves Articles 29, 29-1, or 125 of the Banking Act;
The company offers investment options with fixed income or high returns.
There are many investors, and several of them have already been interviewed.
Salespersons, introducers, or financial personnel were named as defendants;
The case involves underground money exchange or cross-border funds;
Others involved in the case have been detained;
The amount involved, or the criminal profits claimed by the prosecution, exceeds 100 million yuan.
The first key milestone in major banking law cases is usually not the court's verdict, but rather the search, the first confession, and the first detention proceedings.
Banking Law and Common Issues Regarding Illegal Fundraising
What circumstances might constitute illegal fundraising under banking laws?
Article 29 of the Banking Act generally prohibits non-bank entities from engaging in deposit-taking or similar businesses. Article 29-1 further stipulates that any entity that raises funds from a large number of people or unspecified individuals under the guise of loans, investments, becoming a shareholder, or other pretexts, and agrees to or pays dividends, interest, shares, or other remuneration that are clearly disproportionate to the principal, shall be considered to be accepting deposits. However, the actual situation still needs to be determined based on the target investors, the remuneration arrangements, and the overall business model.
Does the fact that a company is genuinely investing or operating necessarily mean it is not guilty of illegal fundraising?
Not necessarily. While genuine operation is an important fact, banking laws still examine whether the fundraising methods comply with the requirements of Articles 29 and 29-1. Conversely, one cannot directly conclude that illegal fundraising occurred simply because of investment failures or company losses.
Is it a violation of banking laws to raise funds only from friends or acquaintances?
It depends on the actual scope and method of fundraising. Article 29-1 of the Banking Act uses the legal term "a large number of people or unspecified people," so it is necessary to confirm the number of fund providers, their relationship with each other, whether they are continuously soliciting funds, whether they are publicly offering funds, and how investors join, rather than simply judging by the phrase "they are all friends."
Can someone become a defendant under banking law simply by being a salesperson or introducing a friend to invest?
An investigation may be conducted, but whether joint criminal liability has been established requires individual assessment. It should be determined whether the individual was aware of the overall fundraising scheme, whether they continuously recruited participants, whether they participated in the compensation arrangements, whether they received commissions, whether they handled funds, and whether they had the intent and actions to commit a joint crime.
How long will a sentence be under Article 125 of the Banking Law?
Article 125, Paragraph 1 of the current Banking Act stipulates that anyone who violates Article 29, Paragraph 1 shall be sentenced to imprisonment for not less than three years but not more than ten years, and may also be fined not less than NT$10 million but not more than NT$200 million. If the property or property benefits obtained as a result of the crime amount to NT$100 million or more, the statutory penalty is increased to imprisonment for not less than seven years, and may also be subject to a higher fine.
Does receiving more than 100 million yuan in investment necessarily mean the company has been in operation for more than seven years?
One cannot simply look at the company's total receipts or total transaction volume. Article 125, which stipulates aggravated charges, uses the phrase "property or property benefits obtained through crime," but in practice, it should be analyzed specifically based on the scope of the crime, the amount involved, the defendant's role, and the evidence.
Will all cases involving banking law result in detention?
Not necessarily. Although banking law cases carry serious penalties, and large-scale fraud cases often involve multiple people and large sums of money, the court must still review the reasons for detention, such as suspicion of crime, escape, collusion, and destruction of evidence, as well as the necessity of detention, in accordance with the Criminal Procedure Law.
Is it possible to be acquitted in a banking law case?
It's possible, but it depends on the evidence on a case-by-case basis. Banking law cases still require proof of the legally mandated fundraising model, target audience, compensation arrangements, defendant's actual participation, and subjective intent. Attorney Li Yu-sheng of Fidelity Law Firm has also served as defense counsel in major corporate finance criminal cases involving company law, commercial accounting law, and cases of public officials making false filings. In one such case, the Taiwan High Court overturned the original guilty verdict and acquitted the defendant. The outcome of one case does not guarantee the same result for other cases.
Banking laws carry significant criminal penalties; before taking the first statement, clarify the funding model and your role.
If the company's responsible person, director, salesperson, introducer, or financial personnel have been searched, questioned, detained, or prosecuted for illegal fundraising, underground money transfer, or other banking law cases, they can first organize the case documents, main investment plans, their own positions, investor relationships, and current cash flow, and then confirm the investigation, detention, and court defense strategies.