Taiwan orders probe into finance minister, 5 other officials on Mega Financial oversight

Mega Financial Holding Co

04/10/2016 05:50

TAIPEI, Oct 4 (Reuters) - Taiwan's government has ordered 
the island's serving finance minister, his predecessor and four 
former regulators be investigated to find out whether they bear 
responsibility for a breach of anti-money laundering rules at 
the New York branch of state-run Mega Financial Holding's 
 2886.TW  banking arm.    
    According to a cabinet statement late on Monday, finance 
minister Sheu Yu-jer and ex-finance minister Chang Sheng-ford 
will be investigated by Taiwan's Control Yuan, an investigatory 
agency that monitors government. The agency will determine 
whether there was "insufficient oversight" in a case that led to 
a $180 million fine by U.S. authorities.  urn:newsml:reuters.com:*:nL3N1C91NG 
    The finance minister and his predecessor could not be 
reached immediately for comment on Tuesday in the latest twist 
in a case that Taiwan's President Tsai Ing-wen has said damaged 
the island's reputation and created public mistrust about 
supervision of the financial sector.  urn:newsml:reuters.com:*:nL3N1BC1PZ 
    The move came after the scandal claimed its first victim in 
the island's administration on Monday when Ding Kung-Wha, the 
chairman of Taiwan's Financial Supervisory Commission (FSC), 
stepped down amid mounting criticism over the watchdog's 
effectiveness.  
    Ding is also among the officials facing investigation by the 
Control Yuan, who served in their respective roles over a period 
from 2010 to 2016, the cabinet statement said. Also facing 
investigation are ex-FSC chiefs William Tseng and Chen Yu-chang, 
and ex-vice chairperson Jennifer Wang. 
    None of the former FSC officials could be reached for 
comment. 
    Preisdent Tsai's opponents on the island said on Monday that 
ex-FSC chief Ding's departure was a symbolic political gesture 
that put disproportionate blame on the official, who only 
assumed his position with the FSC in May of this year. 
    A veteran of Taiwan's administration not widely known in 
international finance circles, Ding previously served as chief 
of the Taipei Exchange and as a finance ministry official. 
 
 
 (Reporting by Faith Hung; Editing by Kenneth Maxwell) 
 ((faith.hung@thomsonreuters.com; 8862 2500 4893; Reuters 
Messaging: faith.hung.thomsonreuters.com@thomsonreuters.net)) 
 
Keywords: TAIWAN MEGAFINANCIAL/