There is no guarantee that Hua Nan Commercial Bank (華南銀行) will be able to avoid being fined by US regulators for the failure of its New York branch to comply with US regulations on money laundering, Financial Supervisory Commission (FSC) Chairman Wellington Koo (顧立雄) said yesterday.
The New York branch of Mega International Commercial Bank (兆豐銀) also failed to pass the latest financial examination by the New York Department of Financial Services (NYDFS) for procedural shortcomings, Koo said.
However, while the failure to pass the tests does raise some red flags, it does not mean that the two state-run banks were involved in money laundering, Koo told lawmakers on the Legislative Yuan’s Finance Committee.
Photo: CNA
Hua Nan Bank had received a warning from the NYDFS for shortcomings in its transaction monitoring, filtering and reporting system, and it has been asked to submit an improvement plan, he said.
Mega Bank, which was fined US$180 million in August last year for contravening US regulations, is expected to complete its improvement plan by the first quarter of next year and achieve compliance, Koo said.
The FSC chairman said he would ask central bank Governor Perng Fai-nan (彭淮南) for help in mediation efforts so the two banks could avoid being fined by US regulators, as they have both pledged to fully cooperate in cleaning up their practices.
Mega Bank is stepping up its efforts to fully comply with US regulations by the first quarter of next year, while Hua Nan Bank will present an improvement plan to US authorities, Koo said.
However, the commission cannot comment directly on the cases until the NYDFS discloses the findings of its investigation, as any information pertaining to such an investigation would be confidential, Koo said.
The commission said that eight Taiwanese banks with operations in New York have passed their US financial examinations: Bank of Taiwan (台銀), First Commercial Bank (一銀), Chang Hwa Commercial Bank (彰銀), Land Bank of Taiwan (土銀), CTBC Bank (中信銀), Taiwan Cooperative Bank (合庫銀), Shanghai Commercial & Savings Bank (上海商銀) and Taiwan Business Bank (台企銀).
Koo also told lawmakers that the commission has asked Mega Bank to submit a report about an alleged theft of NT$33 million (US$1.09 million) by an employee at its branch in Thailand over a four-year period.
The commission is would also look into whether the termination of a SinoPac Financial Holdings Co (永豐金控) executive violated a law barring retaliation against whistle-blowers, he said.
The Ministry of the Interior (MOI) is to tighten rules for candidates running for public office, requiring them to declare that they do not hold a Chinese household registration or passport, and that they possess no other foreign citizenship. The requirement was set out in a draft amendment to the Enforcement Rules of the Public Officials Election and Recall Act (公職人員選舉罷免法 ) released by the ministry on Thursday. Under the proposal, candidates would need to make the declaration when submitting their registration forms, which would be published in the official election bulletin. The move follows the removal of several elected officials who were
The Republic of China (ROC) is celebrating its 114th Double Ten National Day today, featuring military parades and a variety of performances and speeches in front of the Presidential Office in Taipei. The Taiwan Taiko Association opened the celebrations with a 100-drummer performance, including young percussionists. As per tradition, an air force Mirage 2000 fighter jet flew over the Presidential Office as a part of the performance. The Honor Guards of the ROC and its marching band also heralded in a military parade. Students from Taichung's Shin Min High School then followed with a colorful performance using floral imagery to represent Taiwan's alternate name
FOUR DESIGNATED AREAS: Notices were issued for live-fire exercises in waters south and northwest of Penghu, northeast of Keelung and west of Kaohsiung, they said The military is planning three major annual exercises across the army, navy and air force this month, with the navy’s “Hai Chiang” (海強, “Sea Strong”) drills running from today through Thursday, the Ministry of National Defense said yesterday. The Hai Chiang exercise, which is to take place in waters surrounding Taiwan, would feature P-3C Orion maritime patrol aircraft and S-70C anti-submarine helicopters, the ministry said, adding that the drills aim to bolster the nation’s offshore defensive capabilities. China has intensified military and psychological pressure against Taiwan, repeatedly sending warplanes and vessels into areas near the nation’s air defense identification zone and across
COVETED PRIZE: The US president would be a peace prize laureate should he persuade Xi Jinping to abandon military aggression against Taiwan, William Lai said US President Donald Trump should get the Nobel Peace Prize should he be able to convince Chinese President Xi Jinping (習近平) to abandon the use of force against Taiwan, President William Lai (賴清德) told a conservative US radio show and podcast in an interview. The US is Taiwan’s most important international backer, despite the absence of formal ties, but since Trump took office earlier this year he has not announced any new arms sales to the nation. Trump could meet Xi at the APEC summit in South Korea on Oct. 31 and Nov. 1. Lai, speaking on The Clay Travis and Buck Sexton
RSS