The government’s inquiry into Mega International Commercial Bank’s violation of US money-laundering rules is under way.
The New York Department of Financial Services (DFS) fined the bank’s New York branch US$180 million in mid-August. The bank was charged with allegedly violating the US Bank Secrecy Act and money-laundering regulations back in 2012.
On Sunday, the Financial Supervisory Commission (FSC) questioned the former chairman of the state-run Mega Bank’s Mega Financial Holding Company, Tsai Yeou-tsair, for nearly eight hours.
The inquiry focused on a number of things, including the bank’s legal practices, reasons for violating the rules, and its failure to conduct background checks on clients, among other things.
Deputy Finance Minister Su Jain-rong said on Monday that prosecutors are also conducting an investigation into the matter. As to whether the finance ministry will sue the former chairman, Su said his ministry is not going to take the next step before the results of the investigation are released. The FSC says the results are due by the end of September.
Su declined to comment on speculation that authorities in the United States might levy another fine on Mega Bank.