The FSC has asked banks, when carrying out a judicial or administrative compulsory enforcement order, to to avoid illegal offsets or seizures by first confirming whether any of the funds in a person''s account constitute a subsidy payment received in connection with the government''s COVID-19 relief program.

 

The government recently issued relief subsidies to assist members of the public whose finances have been severely affected by the COVID-19 situation, but a number of individuals have informed the government that banks froze or seized the funds immediately upon their receipt. The FSC has reminded banks that such actions violate the "Special Act for Prevention, Relief and Revitalization Measures for Severe Pneumonia with Novel Pathogens" as amended on 21 April 2020. Article 9-1, paragraph 2 of the Act provides: "subsidies, support, allowances, incentives, or compensation provided by the government may not be used as the objects for offsetting, seizure, guarantee, or compulsory enforcement." If a bank fails to take note of this legal provision and offsets or seizes a subsidy payment received from the government, it will be asked to provide redress.

 

The FSC explained that when the Ministry of Labor transfers a relief subsidy to someone''s account, a notation is made that the source of funds is the "Executive Yuan," and it will also be apparent when relief subsidies are transferred from other government agencies that the source of funds is a government agency, so banks should check whether a customer''s account includes subsidies, support, allowances, incentives, or compensation provided by the government, so as to avoid illegal offsets or seizures.