On July 25, 2016, the Legislative Yuan passed the “Act Governing the Handling of Ill-Gotten Properties by Political Parties and Their Affiliated Organizations” (which was promulgated on August 10, 2016), providing that political parties with “ill-gotten properties” shall transfer such properties to the state or to their original owners within a certain period. The term “ill-gotten properties” is defined as properties obtained by a political party or its affiliated organizations via any manner in contravention of the essential purpose of a political party or otherwise contrary to the principles of the democratic rule of law, but excluding membership dues, political contributions, donation of campaign funds, election expense subsidies and interest or other income from such funds. Existing properties that were obtained since August 15, 1945 by a political party (and its affiliated organizations) established before July 15, 1987 shall be presumed to be “ill-gotten properties” and shall be transferred to the state or to the original owners within a certain period. Where such properties have been transferred to a third party and cannot be returned, the political party shall be required to return to the state the cash equivalent of such properties. Any bona fide third party’s rights with resepct to a political party’s ill-gotten properties shall not be affected when such properties are sought to be transferred to the state or to its original owners.