Taiwan's Mega Financial chairman submits resignation after U.S. fine (updated)

Mega Financial Holding Co

31/08/2016 05:29

* Deputy finmin says Shiu's resignation likely to be 
accepted 
    * Shiu says his role doesn't help investigation - Mega Fin 
 
 (Adds finance ministry comment, details from Mega statement) 
    TAIPEI, Aug 31 (Reuters) - Taiwan's Mega Financial Holding 
Co  2886.TW  said chairman Shiu Kuang-si has submitted his 
resignation, in a widening fallout after the company's banking 
unit was fined earlier this month for violating U.S. anti-money 
laundering regulations. 
    Shiu's resignation at the state-controlled firm is likely to 
be accepted, Deputy Finance Minister Su Jain-rong told Reuters 
on Wednesday. Mega Financial's chairman is appointed by Taiwan's 
finance ministry.  
    The New York branch of Mega Financial's banking unit agreed 
this month to pay $180 million to New York state's financial 
regulator for anti-money laundering violations that included lax 
attention to risk exposure in Panama.  urn:newsml:reuters.com:*:nL3N1B4221  
    The U.S. fine, the first for a Taiwan-based financial 
institution in a decade, set off a local probe with Taiwanese 
prosecutors summoning current and former executives of Mega 
Financial, including Shiu, as well as a former finance minister, 
for questioning.  urn:newsml:reuters.com:*:nL3N1BA2IA urn:newsml:reuters.com:*:nL3N1B4221  
    Taiwan's cabinet has formed an emergency taskforce to 
supervise its investigation into Mega Financial's New York 
operations with financial regulators travelling this week to the 
United States.  urn:newsml:reuters.com:*:nL3N1BB2ND urn:newsml:reuters.com:*:nL3N1B62ZW 
    According to a statement from the company on Wednesday, 
Shiu, in his resignation letter, said he was removing himself 
from all his positions in the financial conglomerate amid 
domestic speculation of his role in the investigation. 
    Shiu, the brother-in-law of Taiwan's central bank governor, 
was appointed by the finance ministry this month as chairman of 
Mega Financial. He had been its president till 2014, before 
leaving to join other state-run banks in Taiwan. 
    "In the face of pointless accusations, my role is not 
beneficial to clearing up the problem and it is difficult to 
gain the trust of the people and has even hurt authorities 
(looking into the case)," Shiu wrote in the letter, according to 
the statement.  
 
 (Reporting by Jeanny Kao and Liang-sa Loh; Writing by J.R. Wu; 
Editing by Muralikumar Anantharaman) 
 ((jr.wu@thomsonreuters.com; +886 2 2500 4881; Reuters 
Messaging: jr.wu.thomsonreuters.com@reuters.net)) 
 
Keywords: MEGA FHC TAIWAN/PROBE