An investigation into Mega International Commercial Bank’s (兆豐銀行) contravention of money laundering regulations escalated yesterday, as prosecutors and regulators grilled a former minister of finance and the bank’s former chairman.
Prosecutors questioned former minister of finance Chang Sheng-ford (張盛和) as part of the probe into the violation of money laundering rules by Mega Bank’s New York branch that resulted in a US$180 million fine on the state-run bank.
Chang said that he was not aware of any regulatory infractions by Mega Bank, the main subsidiary of Mega Financial Holding Co (兆豐金控), during his term as minister of finance, because the state-run company did not report the incident to the ministry.
The ministry is a major shareholder in Mega Financial and other state-run financial institutions.
Regarding media reports suggesting that he had met with former Mega Bank chairman Mckinney Tsai (蔡友才) and two accountants on Aug. 22, three days after Mega Financial received the fine, Chang said that the appointments were made prior to the incident.
Media reports said Chang and Tsai had met with accountants to help them prepare for questioning by authorities.
Chang said the meeting was intended to celebrate Tsai’s appointment as chairman of an investment unit controlled by Ruentex Group (潤泰集團) chairman Samuel Yin (尹衍樑) to carry out a hostile takeover of CTBC Financial Holding (中信金控).
Prosecutors also questioned Tsai for the second time as a suspect.
The questioning came after the Financial Supervisory Commission on Sunday questioned Tsai for seven-and-a-half hours to gain a better understanding of the incident.
The commission has summoned 27 persons of interest for questioning, including Mega Financial managers, since Friday last week.
Tsai declined to comment after leaving the prosecutors’ office last night.
The nation’s top financial regulator said it would have a complete report of its findings by the end of next month.
Although Tsai tendered his resignation from Mega Financial in March, the commission could classify his departure as a termination, allowing authorities to punish Tsai and bar him from holding positions in a banking or financial institution for the next five years, the commission said.
In related news, Deputy Minister of Finance Su Jain-rong (蘇建榮) yesterday confirmed that Mega Financial chairman Shiu Kuang-si (徐光曦) has left for the US to check on the operations of the company’s branches there.
Su’s statement came in the wake of media reports that Shiu and a delegation were on their way to the US to meet with financial authorities in New York, Chicago, Silicon Valley and Los Angeles, where Mega Bank has branches.
According to the reports, it was Shiu’s second trip to the US in two weeks to deal with the fallout of the scandal.
Mega Bank was the first Taiwanese bank to receive a penalty for flouting money laundering regulations in the US.
Shiu, who was appointed chairman of Mega Financial earlier this month, is traveling to the US to gain firsthand information about the bank’s overseas business, Su said.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source