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.
The Tourism Administration yesterday announced that it would reward repeat international visitors with incentives of up to NT$8,000 to boost inbound tourism. The incentives are available to all international tourists, it said, adding that repeat visitors would be rewarded with NT$5,000 and would receive an additional NT$3,000 if they bring travel companions. The nation received 2,990,657 inbound visitors during the first quarter, marking a 3.8 percent increase from the same period last year, agency data showed. Japanese nationals are among groups visiting Taiwan the most. About 1.48 million Japanese tourists arrived last year, a year-on-year increase of more than 12
66 FIGHTER JETS: The aircraft is likely undergoing preparations for its transfer to Taiwan — a significant step forward in the nation’s modernization program, a lawmaker said The first of Taiwan’s order of F-16V Block 70 aircraft has been sighted in Texas ahead of delivery, Democratic Progressive Party (DPP) Legislator Wang Ting-yu (王定宇) said. Taiwan’s first F-16V Block 70 two-seat aircraft, tail number 6831, was seen flying from Lockheed Martin’s production facility in Greenville, South Carolina, to Naval Air Station Joint Reserve Base Fort Worth in Texas, Wang wrote on Facebook yesterday. The plane is likely undergoing preparations for its transfer to Taiwan, marking a significant step forward in the Republic of China Air Force’s modernization program, Wang said, citing military analysts. The F-16V Block 70 is a new-build version
‘BRAZEN’: The holiday did not stop China from activities that infringe on Taiwan’s maritime jurisdiction, but the CGA is ready to defend the nation, Kuan Bi-ling said Beijing is intensifying maritime pressure on Taiwan, but the nation will never yield, Ocean Affairs Council Deputy Minister Sung Chen-en (宋承恩) said. The Coast Guard Administration (CGA) has adopted a “shadowing and monitoring” approach to avoid falling into a Chinese trap to escalate tensions and deepen the conflict, Sung said in an interview published yesterday in the Chinese-language Liberty Times (the Taipei Times’ sister newspaper). China Coast Guard formations patrolling waters east of Taiwan, as well as official Chinese vessels entering areas around Itu Aba Island (Taiping Island, 太平島) and Pratas Islands (Dongsha Islands, 東沙群島) show Beijing’s attempts to significantly step up
BOOST: By operating the same advanced systems as the US military, Taiwan would be better positioned to share and integrate intelligence with partners, an expert said The first batch of MQ-9B SkyGuardian drones has arrived in Taiwan, and is being assembled and tested by drone manufacturer General Atomics and the military ahead of flight trials as part of the air force’s acquisition to bolster its aerial surveillance capabilities, a source said yesterday. The air force allocated a budget of NT$21.7 billion (US$687 million) from 2022 to 2029 to procure four MQ-9B uncrewed aerial vehicles (UAVs) manufactured by General Atomics along with associated equipment such as ground control stations. The US has agreed to deliver the four MQ-9Bs to Taiwan in two batches this year and next
RSS