The head of the Financial Supervisory Commission (FSC), Ding Kung-hwa, has resigned following criticism of the FSC’s handling of the Mega Bank scandal.
In August, New York State’s financial regulator fined the New York branch of Taiwan’s Mega Bank US$180 million for violating anti-money laundering regulations. The bank’s Chicago branch was also in the news for breaching local trade regulations.
Both the FSC and the finance ministry have been investigating the matter. However, many in the media have criticized Ding’s handling of the case, saying he is unfit to head the FSC. There have also been rumors about criticism of Ding coming from members of the ruling Democratic Progressive Party.
Ding handed in his letter of resignation on Monday, and it was approved by Premier Lin Chuan. Ding said he decided to resign in order to prove his innocence and dignity, and to stop further speculation from damaging the reputation of the FSC.