Chiayi: Three people suspected of engaging in illegal foreign currency exchange operations have been indicted for violations of domestic banking law by the Chiayi District Prosecutors Office.
According to Focus Taiwan, the suspects, identified by their surnames Liu, Lin, and Hung, were indicted on January 16 for involvement in carrying out foreign currency exchanges operations, which only banks are allowed to conduct in Taiwan under the provisions of the Banking Act. The indictment document highlights that Liu, 40, and Lin, 39, who were previously married and divorced in August 2019, set up several accounts on the e-commerce platform Shopee in May 2019 to carry out their illegal activities.
To avoid detection, they advertised tutorials on topping up balances for Alipay, a Chinese mobile payment app. This strategy targeted people in Taiwan who wanted to purchase Chinese yuan online at a lower exchange rate. Communication with potential clients occurred through private chat features on Shopee or WeChat, where details about the exchange rate and handling fees were discussed.
WeChat, known as a Chinese instant messaging, social media, and mobile payment app developed by Tencent, became a vital tool in their operations. Once customers agreed to the terms, Liu and Lin arranged customized orders for clients to pay in New Taiwan dollars. Their Chinese contacts, whose identities remain undisclosed, facilitated the exchange by transferring Chinese yuan directly to the clients' accounts on platforms such as Alipay, WeChat, or bank savings accounts in China.
Between May 2019 and mid-June 2022, Liu and Lin allegedly exchanged approximately NT$340 million (US$10.36 million), earning around NT$5.6 million in handling fees. Hung was later recruited to join their illegal foreign currency exchange scheme.
Chiayi prosecutors revealed that Liu had been previously indicted for a similar offense in 2019 and received a 22-month jail term, suspended for three years, along with a NT$50,000 fine to the national treasury. Despite these consequences, Liu reportedly continued her illegal activities without remorse. Prosecutors have recommended a harsher punishment for Liu in the current case.