Corruption Currents: Mega Financial Scandal Claims Taiwan’s Top Regtulator

Latest: Corruption and Money Laundering.

Corruption Currents: Mega Financial Scandal Claims Taiwan’s Top Regulator.

Financial Supervisory Commission (FSC) chairman Ding Kung-Wha
(L) and Mega Financial's chairman Michael Chang attend a
parliamentary session at Legislative Yuan in Taipei,
 Taiwan September 21, 2016. REUTERS/Tyrone Siu

By Faith Hung | TAIPEI

Taiwan's top financial regulator resigned on Monday as a scandal over state-run institution Mega Financial's (2886.TW) New York bank branch breaching anti-money laundering regulations claimed its first victim among officials on the island.

Ding Kung-Wha, the chairman of the Financial Supervisory Commission (FSC), stepped down amid mounting criticism over the watchdog's effectiveness. The Mega Financial branch was fined $180 million by U.S. authorities for violations of rules including lax attention to risk exposure in Panama.

In a statement released by the FSC, Ding, 62, said he hoped his resignation would reduce damage to the FSC over the Mega Financial scandal. President Tsai Ing-wen has said the case had damaged Taiwan's reputation and created public mistrust about supervision of the financial sector.

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