Premier Lin Chuan (林全) yesterday instructed the Financial Supervisory Commission (FSC) to form an investigative committee from members of the central bank, and the ministries of justice and finance after the New York branch of Mega International Commercial Bank (兆豐銀行) was ordered to pay a massive fine for violating US money-laundering rules.
Lin said he hopes that the details of the case are clarified as soon as possible, and that any Mega International employees responsible for the situation are identified.
Lin added that people at all levels of society are concerned about the case and said the committee must make an immediate announcement following its meeting.
The New York State Department of Financial Services on Friday announced that the New York branch of Mega International agreed to pay a US$180 million penalty for violating the US Bank Secrecy Act and money-laundering regulations.
The department said Mega International must take immediate steps to correct the violations, including engaging an independent monitor to address serious deficiencies within the bank’s compliance program and implementing effective money laundering controls.
New Power Party Executive Chairman Huang Kuo-chang (黃國昌) criticized the commission for what he said was its failure to force Mega International to take responsibility for its actions.
Those found responsible at the bank should be forced to bear indemnities, so that the Treasury would not have to pay fines with money that came from the “blood and sweat” of taxpayers, Huang said.
The incident has not only exposed the inadequacies of Mega International’s New York branch, but also the shortcomings of the nation’s regulatory agencies, which lack laws that can deliver meaningful punitive consequences, Huang said on Facebook.
In light of the unprecedented severity of the issue, the Ministry of Finance said that it is to meet with the nation’s eight state-controlled banks this week to assess and improve their internal controls and regulatory compliance.
Beginning today, major state-controlled banks with operations in the US are to undergo audits dating back three years to verify if they meet US regulatory requirements, the Chinese-language China Times reported yesterday.
The banking sector has voiced concerns about the nation’s standing in an Asia/Pacific Group on Money Laundering review scheduled to take place in 2018.
“Banking is a highly regulated industry, particularly in the US due to more stringent counterterrorism and money-laundering requirements,” National Treasury Administration Director-General Juan Ching-hwa (阮清華) said on Saturday. “Regulatory compliance must be an integral part of banks’ operating strategy.”
Local media outlets have reported that Taiwanese banks generally lack the scale and legal resources to ensure regulatory compliance in foreign markets.
Additional reporting by Luo Tien-pin
LIMITS: While China increases military pressure on Taiwan and expands its use of cognitive warfare, it is unwilling to target tech supply chains, the report said US and Taiwan military officials have warned that the Chinese People’s Liberation Army (PLA) could implement a blockade within “a matter of hours” and need only “minimal conversion time” prior to an attack on Taiwan, a report released on Tuesday by the US Senate’s China Economic and Security Review Commission said. “While there is no indication that China is planning an imminent attack, the United States and its allies and partners can no longer assume that a Taiwan contingency is a distant possibility for which they would have ample time to prepare,” it said. The commission made the comments in its annual
DETERMINATION: Beijing’s actions toward Tokyo have drawn international attention, but would likely bolster regional coordination and defense networks, the report said Japanese Prime Minister Sanae Takaichi’s administration is likely to prioritize security reforms and deterrence in the face of recent “hybrid” threats from China, the National Security Bureau (NSB) said. The bureau made the assessment in a written report to the Legislative Yuan ahead of an oral report and questions-and-answers session at the legislature’s Foreign Affairs and National Defense Committee tomorrow. The key points of Japan’s security reforms would be to reinforce security cooperation with the US, including enhancing defense deployment in the first island chain, pushing forward the integrated command and operations of the Japan Self-Defense Forces and US Forces Japan, as
INTERCEPTION: The 30km test ceiling shows that the CSIST is capable of producing missiles that could stop inbound missiles as they re-enter the atmosphere Recent missile tests by the Chungshan Institute of Science and Technology (CSIST) show that Taiwan’s missiles are capable of intercepting ballistic missiles as they re-enter the atmosphere and pose a significant deterrent to Chinese missile threats, former Hsiung Feng III missile development project chief engineer Chang Cheng (張誠) said yesterday. The military-affiliated institute has been conducting missile tests, believed to be related to Project Chiang Kung (強弓) at Pingtung County’s Jiupeng Military Base, with many tests deviating from past practices of setting restriction zones at “unlimited” and instead clearly stating a 30.48km range, Chang said. “Unlimited” restrictions zones for missile tests is
PUBLIC SAFETY: The nationwide distribution campaign aims to enhance society’s overall understanding of threats and bolster defense awareness, an official said The latest edition of the National Public Safety Guide is being mailed to all citizens starting today to foster public awareness of self-defense in the event of war or natural disasters, the Ministry of National Defense said yesterday. “The guides will be disseminated to the public to enhance society’s overall understanding of threats and bolster defense awareness, demonstrating the government’s emphasis on people’s safety and its determination to pursue self-defense,” All-out Defense Mobilization Agency Director Shen Wei-chih (沈威志) said at the ministry’s news conference. The nationwide distribution campaign was planned according to President Lai William’s (賴清德) Sept. 20 directive, he said, adding
RSS