(Adds comments, background)
TAIPEI May 22 Taiwanese prosecutors said on
Monday they will not indict Mega Financial Holding Co Ltd
for violating anti-money laundering rules, after
allegations were brought against it by U.S. authorities.
Prosecutors said that while Mega Financial, one of Taiwan's
five-biggest financial firms, may have violated U.S. rules out
of ignorance, there was no evidence of intentional wrongdoing.
The probe sparked criticism about the effectiveness of the
island's financial regulator and led to the resignation of the
Financial Supervisory Commission's chairman.
New York state authorities alleged the bank's New York
branch was "indifferent" to risks associated with transactions
involving Panama, a high-risk area for money laundering. The
firm agreed to pay $180 million to settle that case in August
Mega executives were not immediately available for comment.
(Reporting by Faith Hung; Editing by Muralikumar Anantharaman
and Stephen Coates)