The Financial Supervisory Commission (FSC) has summoned former Mega Financial Holding Co (兆豐金控) chairman Mckinney Tsai (蔡友才) for questioning on Sunday, amid allegations that Mega International Commercial Bank’s (兆豐銀行) New York branch might have been involved in money laundering.
FSC Chairman Ding Kung-wha (丁克華) yesterday said that Tsai, who no longer works in the financial sector, could clarify claims that the New York branch was involved in money laundering.
“Tsai has nothing to worry about, as the FSC is not a judicial body and is focused on learning the truth about the case,” Ding said, while speaking at a cooperative education event, which promises to provide 7,000 internship positions at financial firms.
Photo: Tyrone Siu, Reuters
Until Mega Bank resolves the problems associated with the money-laundering allegations, it will be barred from opening any new branches overseas, Ding said.
The commission, which plans to send a delegation to New York and Panama next week to examine Mega Bank’s operations there, yesterday said it respects a decision by the Panamanian government to launch an investigation into the bank, as the Central American country has jurisdiction over banks operating within its territory.
The decision by the Superintendency of Banks of Panama (SBP) to investigate Mega Bank’s branch in Panama came after the New York Department of Financial Services accused Panama of serving as a high-risk jurisdiction for money laundering.
By conducting an investigation into the Mega Bank matter, the SBP is seeking to disprove the department’s allegations and clear Panama’s reputation, FSC Vice Chairman Kuei Hsien-nung (桂先農) said.
Separately, Shin Kong Financial Holding Co (新光金控) yesterday announced that its board of directors had unanimously voted to appoint Catherine Lee (李紀珠) to fill the long-vacant position of president.
Lee is the chairperson of state-run Taiwan Financial Holdings (台灣金控). Her term is to conclude at the end of this month.
Having served as a government official as well as in the banking, securities and insurance sectors, Lee will be tasked with developing new horizons in digital finance, as well as optimizing current operations, Shin Kong said in a statement.
Additional reporting by CNA
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