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.
ANNOUNCEMENT: People who do not comply with the ban after a spoken warning would be reported to the police, the airport company said on Friday Taoyuan International Airport Corp on Friday announced that riding on vehicles, including scooter-suitcases (also known as “scootcases”), bicycles, scooters and skateboards, is prohibited in the airport’s terminals. Those using such vehicles should manually pull them or place them on luggage trolleys, the company said in a Facebook post. The ban intends to maintain order and protect travelers’ safety, as the airport often sees large crowds of people, it said, adding that it has stepped up publicity for the regulation, and those who do not comply after a spoken warning would be reported to the police. The company yesterday said that
QUIET START: Nearly a week after applications opened, agencies did not announce or promote the program, nor did they explain how it differed from other visitor visas Taiwan has launched a six-month “digital nomad visitor visa” program for foreign nationals from its list of visa-exempt countries who meet financial eligibility criteria and provide proof of work contracts. To apply, foreign nationals must either provide proof that they have obtained a digital nomad visa issued by another country or demonstrate earnings based on age brackets, the Bureau of Consular Affairs said. Applicants aged 20 to 29 must show they earned an annual salary of at least US$20,000 or its equivalent in one of the past two years, while those aged 30 or older must provide proof they earned US$40,000 in
SERIOUS ALLEGATIONS: The suspects formed spy networks and paramilitary groups to kill government officials during a possible Chinese invasion, prosecutors said Prosecutors have indicted seven retired military officers, members of the Rehabilitation Alliance Party, for allegedly obtaining funds from China, and forming paramilitary groups and assassination squads in Taiwan to collaborate with Chinese troops in a possible war. The suspects contravened the National Security Act (國家安全法) by taking photos and drawing maps of key radar stations, missile installations and the American Institute in Taiwan’s headquarters in Taipei, prosecutors said. They allegedly prepared to collaborate with China during a possible invasion of Taiwan, prosecutors said. Retired military officer Chu Hung-i (屈宏義), 62, a Republic of China Army Academy graduate, went to China
UNITY MESSAGE: Rather than focusing on what Trump said on the campaign trail about Taiwan, Taipei should be willing to engage with the US, Pompeo said Taiwan plays a key role in Washington’s model of deterrence against China, former US secretary of state Mike Pompeo said in a speech in Taipei yesterday. During US president-elect Donald Trump’s first term, “we had developed what we believe was a pretty effective model of deterrence against adversaries who wanted to undermine the set of rules and values that the people of Taiwan and the people of the US hold dear,” Pompeo said at a forum organized by the Formosa Republican Association. “Succeeding in continuing to build this model will not solely rest at the feet of president Trump and his team,
RSS