Washington-The U.S. Federal Reserve Board (FRB) on Wednesday announced a US$29 million penalty against the U.S. operations of Taiwan's Mega International Commercial Bank for anti-money laundering violations.
In the announcement, FRB required Mega Bank to improve its anti-money laundering oversight and controls, saying that its branches in New York, Chicago and Silicon Valley did not maintain an effective program to comply with the U.S. Bank Secrecy Act (BSA) and anti-money laundering laws (AML).
The most recent examinations of the branches, conducted respectively by the Federal Reserve Banks of New York, Chicago and San Francisco between June and December in 2016, disclosed significant deficiencies relating to the branches' risk management and compliance with the BSA/AML requirements, the board said.
Prior to this, the New York branch had been fined US$180 million by New York State's Department of Financial Services in August 2016 for the violations.
Source: Focus Taiwan News Channel