Taiwan FSC Fines Chang Hwa Bank Over Client Theft

Source: Regulation Asia Editors, Regulation Asia 2020-07-13

A Chang Hwa Bank consultant was found to have used over $2mn of client money to make up losses for other clients over a ten year period.

Taiwan’s FSC (Financial Supervisory Commission) has fined state-run Chang Hwa Bank TWD 12 million (USD 408,000) for Banking Act contraventions after one of its consultants allegedly stole money from clients. reports Taipei Times.

The consultant is said to have borrowed TWD 13.3 million from four clients, and withdrawn TWD 49.6 million from client accounts (total about USD 2.1 million) without informing them, between August 2009 and June 2019.

The FSC said Lin used most of the money to make up losses for other clients, to whom he had promised fixed returns for participating in certain investment programs. He is also said to have spent some of the money.

Lin had access to the clients’ seals, and was therefore able to move clients’ money under the guise of helping them make money transfers or deposits.

Chang Hwa Bank discharged Lin, reported the case to the FSC and conducted an internal investigation.

Chang Hwa’s TWD 12 million fine is in line with fines imposed on Bank SinoPac and E.Sun Commercial Bank in January after their own consultants were found to have stolen money million from clients.

Taiwan FSC

Chang Hwa Bank

台湾金融监督委员会

Taiwan FSC Fines Chang Hwa Bank Over Client Theft

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