The board of directors of Mega International Commercial Bank will be changed soon. That was the word from the finance ministry at a Cabinet meeting on Wednesday. The government is also working to change the board of Mega Financial Holding Company.
The New York branch of Mega Bank has been fined US$180 million by New York State’s financial regulator for violating anti-money laundering regulations. Cabinet spokesperson Tung Chen-yuan said that after the case is thoroughly investigated, the Cabinet would also seek compensation from responsible parties on the bank’s board of directors. The Financial Supervisory Commission (FSC) is speaking with management personnel about the violations.
Tung said the Cabinet has found that the bank was negligent on four counts. He also said that the Cabinet is looking into problems with the bank’s reporting systems.