Taichung Bank Fined Record NT$32 Million for Anti-Money Laundering Failures in 10 Branches
Taichung Bank was fined a record NT$32 million by the Financial Supervisory Commission for deficiencies in anti-money laundering measures. The issues were found in 10 branches regarding customer due diligence and suspicious transaction reporting for 21 corporate accounts opened since April 2024.
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- 📰 Published: May 12, 2026 at 20:53
- 🔍 Collected: May 12, 2026 at 21:02 (8 min after Published)
- 🤖 AI Analyzed: May 13, 2026 at 08:08 (11h 6m after Collected)
Central News Agency
(Central News Agency reporter Su Siyun, Lu Yantzu, Taipei 12th report) Taichung Bank was fined for internal control deficiencies involving collusion with a fraud group. The Financial Supervisory Commission today stated that 10 branches of Taichung Bank, since April 2024, handled deposit account openings for 21 corporate customers, lacking proper review mechanisms for Know Your Customer (KYC) procedures and online banking limits. Furthermore, there were multiple deficiencies in subsequent suspicious transaction reporting and other aspects, resulting in a heavy fine of NT$32 million, the highest ever for the banking industry.
Taichung Bank issued a major announcement in the evening, stating that it will handle relevant improvement matters according to the opinions of the competent authority, and that the company's operations are normal and capital adequacy is sufficient.
Taichung District Prosecutors Office previously pointed out that Hong Yuepeng, the person in charge of Wanli Development Company, colluded with six managers and assistant managers of Taichung Commercial Bank to open merchant accounts to assist gambling and fraud groups in laundering over NT$3.6 billion.
Tong Zhengzhang, Director-General of the Banking Bureau of the Financial Supervisory Commission, explained the penalty results at a regular press conference today. Following financial inspections last year and investigations by prosecutors, it was found that a total of 10 branches of Taichung Bank, including Tanzi, Zhongzheng, Beitun, Toufen, Yuanlin, Dounan, West Taichung, Taipei, Zuoying, and Wufeng, handled deposit account openings for 21 corporate customers, lacking proper review mechanisms for Know Your Customer (KYC) procedures and online banking limits.
Tong Zhengzhang pointed out that the branches also had multiple deficiencies in subsequent customer due diligence, continuous monitoring and verification of abnormal transactions, and suspicious transaction reporting, indicating that the bank had not properly established and effectively implemented internal controls. For example, Taichung Bank did not have review mechanisms for corporate deposit account openings for first-time customers, those with lower capital, those without geographical ties, and those who failed to provide reasonable explanations.
Tong Zhengzhang stated that considering that as many as 10 branches failed to implement anti-money laundering operations in KYC and transaction monitoring, it is no longer an isolated case, thus imposing a fine of NT$32 million, setting a new record for the highest penalty in the banking industry.
He explained that Taichung Bank is required to comprehensively review its deficiencies, study improvement measures, complete the inspection of all branches by the first half of this year, and hire external experts within one month to recalibrate and improve its anti-money laundering mechanisms.
Regarding market concerns about whether former Taichung Bank chairman Wang Guifeng, who was indicted for allegedly using public funds to rent luxury cars, might be removed from his position as a standing director due to this case, Tong Zhengzhang stated that Wang Guifeng was suspended for three months due to the previous case and has already left the chairman position, and a disposition has been made. This case is a new one concerning ineffective corporate governance. Since the board of directors is a collegial body, responsibilities must be clarified according to the responsibility map, and no prejudgment will be made on the level of accountability.
The Financial Supervisory Commission also, in accordance with Article 18, Paragraph 3 of the "Regulations Governing the Capital Adequacy and Capital Levels of Banks," required Taichung Bank to increase capital provisions related to operational risk under the second pillar of supervisory review. Based on Taichung Bank's capital adequacy ratio of 14.8% at the end of 2025, if it wants to maintain the same capital adequacy ratio, Taichung Bank needs to increase capital by NT$2.6 billion, otherwise, the capital adequacy ratio will decrease, affecting business operations.
Despite the heavy penalties imposed by the Financial Supervisory Commission, there have been continuous reports of bank employees colluding with fraud groups in recent years. Tong Zhengzhang responded that Chairman Peng Jinlong is "constantly thinking" about how to implement trusted finance, and has instructed a comprehensive review of the system. The direction will be to refine the system from pre-event, in-event, and post-event perspectives. The Bankers Association will be asked to provide guidelines by the end of the year on how to shape integrity governance. If employee behavior deviates, new technologies and systems can be used to prevent it during the event. This case may be due to branch performance orientation, leading to lax account opening reviews and anti-money laundering. A comprehensive review should be conducted after the event.
Tong Zhengzhang emphasized that financial institutions are an important line of defense against money laundering, and the Financial Supervisory Commission has zero tolerance for anti-money laundering deficiencies. (Edited by Lin Shuyuan) 1150512
(Central News Agency reporter Su Siyun, Lu Yantzu, Taipei 12th report) Taichung Bank was fined for internal control deficiencies involving collusion with a fraud group. The Financial Supervisory Commission today stated that 10 branches of Taichung Bank, since April 2024, handled deposit account openings for 21 corporate customers, lacking proper review mechanisms for Know Your Customer (KYC) procedures and online banking limits. Furthermore, there were multiple deficiencies in subsequent suspicious transaction reporting and other aspects, resulting in a heavy fine of NT$32 million, the highest ever for the banking industry.
Taichung Bank issued a major announcement in the evening, stating that it will handle relevant improvement matters according to the opinions of the competent authority, and that the company's operations are normal and capital adequacy is sufficient.
Taichung District Prosecutors Office previously pointed out that Hong Yuepeng, the person in charge of Wanli Development Company, colluded with six managers and assistant managers of Taichung Commercial Bank to open merchant accounts to assist gambling and fraud groups in laundering over NT$3.6 billion.
Tong Zhengzhang, Director-General of the Banking Bureau of the Financial Supervisory Commission, explained the penalty results at a regular press conference today. Following financial inspections last year and investigations by prosecutors, it was found that a total of 10 branches of Taichung Bank, including Tanzi, Zhongzheng, Beitun, Toufen, Yuanlin, Dounan, West Taichung, Taipei, Zuoying, and Wufeng, handled deposit account openings for 21 corporate customers, lacking proper review mechanisms for Know Your Customer (KYC) procedures and online banking limits.
Tong Zhengzhang pointed out that the branches also had multiple deficiencies in subsequent customer due diligence, continuous monitoring and verification of abnormal transactions, and suspicious transaction reporting, indicating that the bank had not properly established and effectively implemented internal controls. For example, Taichung Bank did not have review mechanisms for corporate deposit account openings for first-time customers, those with lower capital, those without geographical ties, and those who failed to provide reasonable explanations.
Tong Zhengzhang stated that considering that as many as 10 branches failed to implement anti-money laundering operations in KYC and transaction monitoring, it is no longer an isolated case, thus imposing a fine of NT$32 million, setting a new record for the highest penalty in the banking industry.
He explained that Taichung Bank is required to comprehensively review its deficiencies, study improvement measures, complete the inspection of all branches by the first half of this year, and hire external experts within one month to recalibrate and improve its anti-money laundering mechanisms.
Regarding market concerns about whether former Taichung Bank chairman Wang Guifeng, who was indicted for allegedly using public funds to rent luxury cars, might be removed from his position as a standing director due to this case, Tong Zhengzhang stated that Wang Guifeng was suspended for three months due to the previous case and has already left the chairman position, and a disposition has been made. This case is a new one concerning ineffective corporate governance. Since the board of directors is a collegial body, responsibilities must be clarified according to the responsibility map, and no prejudgment will be made on the level of accountability.
The Financial Supervisory Commission also, in accordance with Article 18, Paragraph 3 of the "Regulations Governing the Capital Adequacy and Capital Levels of Banks," required Taichung Bank to increase capital provisions related to operational risk under the second pillar of supervisory review. Based on Taichung Bank's capital adequacy ratio of 14.8% at the end of 2025, if it wants to maintain the same capital adequacy ratio, Taichung Bank needs to increase capital by NT$2.6 billion, otherwise, the capital adequacy ratio will decrease, affecting business operations.
Despite the heavy penalties imposed by the Financial Supervisory Commission, there have been continuous reports of bank employees colluding with fraud groups in recent years. Tong Zhengzhang responded that Chairman Peng Jinlong is "constantly thinking" about how to implement trusted finance, and has instructed a comprehensive review of the system. The direction will be to refine the system from pre-event, in-event, and post-event perspectives. The Bankers Association will be asked to provide guidelines by the end of the year on how to shape integrity governance. If employee behavior deviates, new technologies and systems can be used to prevent it during the event. This case may be due to branch performance orientation, leading to lax account opening reviews and anti-money laundering. A comprehensive review should be conducted after the event.
Tong Zhengzhang emphasized that financial institutions are an important line of defense against money laundering, and the Financial Supervisory Commission has zero tolerance for anti-money laundering deficiencies. (Edited by Lin Shuyuan) 1150512