First, define the permissions, payment flow, documents, and transaction purpose, then decide on the next step.

When a company discovers unusual withdrawals from its accounts, payments made by customers that the company has not received, managers transferring funds to their own or related parties' accounts, or discrepancies between accounting records and bank statements, the first step is usually not to immediately summon the parties for questioning, nor to assume a crime based solely on an unusual remittance. In corporate criminal cases, the first step should be to establish clear documentation of authority, cash flow, documents, and the purpose of transactions.

Bank transaction details, online banking and withdrawal records.
Accounting vouchers, general ledger and subsidiary ledger.
Invoices, payment requests, quotations, and contracts.
The company legally owns work communication services such as Email, LINE, and WhatsApp.
Payment, online banking, seals, company stamps, and approval process.
Actual payments and transactions between customers and suppliers.
The period, amount, flow of funds, and related personnel involved.

Do not hack into personal phones, log into personal accounts, illegally listen in, or delete or modify data. Protecting the records the company is entitled to is crucial to preventing the facts from being distorted by fragmented information.

If a company discovers irregularities in payments, what should it do first?

First, retrieve and properly preserve bank records, accounting documents, contracts, invoices, payment requests, and legally held company communications; confirm who has the authority to make payments, access online banking, ERP systems, seals, and approvals, and then verify the actual transactions and payment details with customers or suppliers. Include the date, amount, purpose, flow, and handler of each irregular transaction in a preliminary timeline, and retain the original documents and the method of acquisition.

If there is still a risk of continued outflow of funds, the company may adjust payment, system or device permissions within the scope permitted by law and internal regulations to avoid further losses; however, permission handling, labor relations and evidence preservation should be coordinated, and it is not advisable to coerce employees to confess, fabricate evidence or trespass on personal devices.

If an employee takes company funds, is it considered embezzlement, breach of trust, or some other legal issue?

While both cases involve "company money being taken," the legal nature of the incident may differ. If an employee legally possesses company property due to their position and then appropriates it for personal gain, it may be considered embezzlement. However, if an employee is entrusted with handling company affairs and violates their duties with the intent to obtain illegal benefits for themselves or a third party, or to harm the company's interests, causing damage to the company, it may be considered breach of trust.

If payments are made to the company through fictitious transactions, forged payment requests, or misrepresentations, fraud or other liabilities must be examined. However, accounting errors, inconsistencies in authority, outstanding advances, or simple civil debts should not be automatically criminalized simply because of abnormal cash flow. It is necessary to first ascertain who originally held the funds, their job authority, subsequent disposal, their awareness, the beneficiaries, and the extent of company damage.

If the case involves private commissions or procurement interests from suppliers, this should be clarified separately, because...The handling of procurement kickbacks differs from that of general misappropriation of company funds..

If the dispute involves the company's head, director, or senior executive being named as a defendant, the following distinctions should be made.Handling of cases where company executives are accused of breach of trustThis avoids confusing the strategies of the company as the plaintiff and the defendant.

What evidence is most convincing to prove the actual flow of company funds?

Valid evidence is usually not a single remittance slip, but rather bank statements, online banking and withdrawal records, accounting vouchers, general ledger and subsidiary ledgers, invoices, payment requests, expense reimbursements, contracts, quotations, procurement data, ERP systems, payment approval processes, customer payment receipts, supplier transaction records, and legally obtained email, LINE/WhatsApp, and company system access records.

For corporate cases, cross-referencing "accounting records × bank flows × actual transactions × internal approvals" is necessary. For example, if consulting fees are recorded in the books, it is also necessary to verify whether there is a contract, service results, approver, receiving account, and ultimate beneficiary; if client payments have not been deposited into the company's accounts, it is also necessary to compare invoices, statements, collection instructions, and client payment proof.

Has the company discovered that a supervisor or employee is suspected of embezzling funds?

If there are outstanding payments, unusual withdrawals, or company funds being transferred to private or related party accounts, you can first compile bank statements, accounting books, contracts, payment requests, and internal approval documents. A lawyer can then reconstruct the flow of funds, the scope of authority, and the background of the transactions. Finally, an assessment can be made to determine whether there is any business misappropriation, breach of trust, or other liability, as well as strategies for criminal prosecution and fund recovery.

Telephone: 02-7709-3611 LINE: @fdlaw

After discovering something amiss, should we immediately confront the employee?

Generally, existing evidence should be secured first before deciding on the timing and method of internal interviews. Questioning too early may result in the deletion of data or, in cases involving multiple individuals, the risk of them communicating and adjusting their statements; however, companies should not presume employees to be guilty. Clarification can be made through legal means such as written questions, formal interviews, or requests for explanations, with the coordination of lawyers, management, and HR, and the answers should be fully preserved.

Whether company equipment, accounts, and data can be accessed depends on ownership, company policy, employment contract, privacy, and the scope of authority. It is forbidden to force the handover of private passwords, illegally detain, threaten, or demand false confessions.

What circumstances warrant further evaluation of the criminal complaint?

For example, if company receipts are retained by individuals, multiple unauthorized withdrawals are made, funds are transferred to private or related party accounts, false payment requests or inaccurate transaction information are fabricated, company assets are disposed of without authorization, personal benefits are obtained by abusing official authority, or there are obvious discrepancies between the accounting records, cash flow and actual transactions, all of these warrant further examination.

However, "abnormality" does not necessarily equate to a crime. Before filing a lawsuit, it should be clearly stated who did what, what their original authority was, how the funds flowed, the extent of the company's damages, what legal liabilities might be involved, and whether the existing evidence can support the claim.Corporate criminal case lawyerAligning facts, evidence, and legal characterization is often more important than piling up charges.

Can filing a criminal complaint recover the company's funds?

Criminal prosecution and the recovery of company funds are related but distinct objectives. Criminal proceedings address criminal liability; fund recovery may involve civil damages, claims for restitution, unjust enrichment, civil suits attached to criminal cases if the conditions are met, and assessment of provisional seizures or other measures when there is a need for preservation and a legal basis.

The company may also assess the possibility of settlement based on evidence, asset status, and business considerations. However, filing a lawsuit does not guarantee the recovery of funds, and a settlement does not automatically terminate all criminal proceedings.Corporate commercial disputes and civil claimsIn such cases, criminal, civil, and preservation strategies should be planned separately.

Can a company suspend, dismiss, or revoke an employee's privileges?

Criminal issues, labor law, internal authority, information security, and evidence preservation are all related, but their legal bases and procedures differ. A company may need to simultaneously review payment and online banking permissions, company email, ERP, company equipment and data, employment contracts, work rules, and internal authorizations before deciding on suspending permissions, adjusting positions, or other personnel measures. It cannot assume that immediate dismissal is permissible simply because of suspected criminal activity.

Before a company is ready to appoint a lawyer, what information should it prepare in the most efficient way?

It is recommended to compile a list of details including the period of irregularity, estimated amounts, positions of those involved, company organization and authority, bank statements, accounting records, contracts, invoices and payment requests, company communications, customer and supplier information, approval processes, job descriptions, and current statements from the other party. If shareholder relationships are also involved, they can be compiled together.Disputes concerning shareholders, company books and fundsBackground.

The company should also prioritize its objectives: whether to immediately stop losses, investigate the facts, file a criminal complaint, recover funds, address shareholder liability, or resolve labor relations issues. The procedures, evidence, and timelines required for different objectives vary.

Why can't we only look at criminal law provisions in cases involving company funds?

Corporate criminal cases often involve corporate governance, authority, contracts, actual transactions, accounting, bank transactions, related-party transactions, corporate damages, and criminal proceedings. The core issue is often not "whether there was a remittance," but rather reconstructing the entire transaction and authority structure to determine whether the payment had a commercial basis, who approved it, what the company received, and who ultimately benefited from the funds.

If the case has progressed to the stage of search and seizure, further investigation is needed.Company handling during police searchAnd in accordance with the law, preserve the company's operational and case-related materials.

Frequently Asked Questions

Does an employee taking company funds necessarily constitute embezzlement?

Not necessarily. It is necessary to confirm whether the employee legally held the funds based on business needs, whether they subsequently appropriated them for personal use, and to verify both subjective perception and objective evidence.

If a supervisor transfers company funds to themselves, can they be sued for breach of trust?

The company may file a complaint or report, but whether it constitutes breach of trust depends on the supervisor's duties, authorization, purpose of remittance, attribution of benefits, and damage to the company.

If a company discovers that an employee has embezzled funds, should it report it to the police first?

It depends on the urgency. Usually, the first step is to preserve legally obtainable bank, account, and transaction data, and then assess whether to report it to the police and how to present specific evidence.

What bank and accounting evidence should a company prepare before filing a lawsuit?

The core data includes bank statements, online banking and withdrawal records, vouchers, general ledger and subsidiary ledgers, invoices, payment requests, contracts and approval processes, which are cross-referenced with actual transactions.

If the employee is willing to repay the money, will the criminal case be closed?

Not necessarily. Returning the property or reaching a settlement may affect the handling of the case, but whether the proceedings are terminated still depends on the nature of the crime, the stage of the proceedings, and the judgment of the investigating and judicial authorities.

After a criminal complaint is filed, can the company still demand a refund of the funds?

In principle, civil claims, incidental civil claims, or other preservation measures can still be assessed based on the specific legal relationship, but double compensation should be avoided.

What should a company do if it discovers that a supervisor or employee has embezzled funds? First, preserve the accounting records, cash flow statements, and proof of authorization.