The Executive Yuan yesterday formed a supervisory task force to facilitate an investigation into a breach of US money laundering rules by Mega International Commercial Bank’s (兆豐銀行) New York branch.
The task force, consisting of legal and finance experts — including lawyer Chen Chuan-yueh (高涌誠), former Judicial Reform Foundation director Kao Yung-cheng (高永成), former minister of finance Joseph Lyu (呂桔誠), former First Commercial Bank (第一銀行) chairman Michael Chang (張兆順) and former Land Bank of Taiwan (土地銀行) chairmen Tsai Jer-shyong (蔡哲雄) and Wu Fang-chih (吳藩志) — is to gauge public opinion regarding the case and facilitate probes by the Financial Supervisory Commission (FSC) and the Ministry of Justice.
“The Executive Yuan will get to the bottom of the case and hold accountable all of the people responsible,” Premier Lin Chuan (林全) told a news conference.
Photo: CNA
The FSC interviewed 28 Mega Bank officials, while the ministry is looking into suspicious accounts at the New York branch, Lin said, although little was revealed about the progress of the investigation.
The New York State Department of Financial Services (DFS) on Aug. 19 announced that the New York branch agreed to pay a US$180 million penalty for breaching US money laundering regulations.
There are 73 suspicious accounts and 174 suspicious transactions involved, but no money laundering activity has been detected so far, Lin said.
Lin reaffirmed the appointment of Mega Financial Holding Co (兆豐金控) chairman Shiu Kuang-si (徐光曦) amid criticism that Lin should be held accountable for appointing someone who was responsible for the branch’s flawed practices, as suspicious transactions between Mega Bank’s New York and Panama branches occurred during Shiu’s term as the bank’s general manager.
“Although Shiu was not totally blameless, he did not bear a large share of responsibility” in failing to report suspicious account activity to US authorities, Lin said.
Shiu was appointed as chairman after the branch was fined because he has experience dealing with a similar crisis, in which the bank’s Australian branch was not fined for breaching Australia’s money laundering regulations, Lin said.
President Tsai Ing-wen (蔡英文) was also informed of the appointment, Lin said.
Shiu is in the US to learn more about the New York branch’s operations and will prepare a formal report for the DFS, Lin said.
The FSC and the ministry are also looking into the New York branch’s practices instead of allowing Mega Bank officials to direct the investigation, Lin said in response to accusations that Shiu might cover up the branch’s activities.
The DFS was originally going to impose a bigger fine, but central bank Governor Perng Fai-nan (彭淮南) helped facilitate negotiations between Mega Bank and US authorities to reduce the fine to US$180 million, Lin said, confirming a rumor about Peng’s intervention.
Peng, who is Shiu’s brother-in-law, helped Mega Bank connect with the US Federal Reserve to negotiate with the DFS, Lin said.
The sum of the original fine cannot be revealed due to an agreement with the US, Lin said.
The case also shows that the FSC’s supervision of Taiwanese banks’ foreign branches has to be improved, Lin said.
“We have learned a painful lesson. There is apparently much room for improvement in terms of money laundering prevention and legal compliance,” Lin said.
AIR SUPPORT: The Ministry of National Defense thanked the US for the delivery, adding that it was an indicator of the White House’s commitment to the Taiwan Relations Act Deputy Minister of National Defense Po Horng-huei (柏鴻輝) and Representative to the US Alexander Yui on Friday attended a delivery ceremony for the first of Taiwan’s long-awaited 66 F-16C/D Block 70 jets at a Lockheed Martin Corp factory in Greenville, South Carolina. “We are so proud to be the global home of the F-16 and to support Taiwan’s air defense capabilities,” US Representative William Timmons wrote on X, alongside a photograph of Taiwanese and US officials at the event. The F-16C/D Block 70 jets Taiwan ordered have the same capabilities as aircraft that had been upgraded to F-16Vs. The batch of Lockheed Martin
GRIDLOCK: The National Fire Agency’s Special Search and Rescue team is on standby to travel to the countries to help out with the rescue effort A powerful earthquake rocked Myanmar and neighboring Thailand yesterday, killing at least three people in Bangkok and burying dozens when a high-rise building under construction collapsed. Footage shared on social media from Myanmar’s second-largest city showed widespread destruction, raising fears that many were trapped under the rubble or killed. The magnitude 7.7 earthquake, with an epicenter near Mandalay in Myanmar, struck at midday and was followed by a strong magnitude 6.4 aftershock. The extent of death, injury and destruction — especially in Myanmar, which is embroiled in a civil war and where information is tightly controlled at the best of times —
Taiwan was ranked the fourth-safest country in the world with a score of 82.9, trailing only Andorra, the United Arab Emirates and Qatar in Numbeo’s Safety Index by Country report. Taiwan’s score improved by 0.1 points compared with last year’s mid-year report, which had Taiwan fourth with a score of 82.8. However, both scores were lower than in last year’s first review, when Taiwan scored 83.3, and are a long way from when Taiwan was named the second-safest country in the world in 2021, scoring 84.8. Taiwan ranked higher than Singapore in ninth with a score of 77.4 and Japan in 10th with
China's military today said it began joint army, navy and rocket force exercises around Taiwan to "serve as a stern warning and powerful deterrent against Taiwanese independence," calling President William Lai (賴清德) a "parasite." The exercises come after Lai called Beijing a "foreign hostile force" last month. More than 10 Chinese military ships approached close to Taiwan's 24 nautical mile (44.4km) contiguous zone this morning and Taiwan sent its own warships to respond, two senior Taiwanese officials said. Taiwan has not yet detected any live fire by the Chinese military so far, one of the officials said. The drills took place after US Secretary
RSS