TAIPEI Oct 4 Taiwan's government has ordered
the island's serving finance minister, his predecessor and four
former regulators be investigated to find out whether they bear
responsibility for a breach of anti-money laundering rules at
the New York branch of state-run Mega Financial Holding's
According to a cabinet statement late on Monday, finance
minister Sheu Yu-jer and ex-finance minister Chang Sheng-ford
will be investigated by Taiwan's Control Yuan, an investigatory
agency that monitors government. The agency will determine
whether there was "insufficient oversight" in a case that led to
a $180 million fine by U.S. authorities.
The finance minister and his predecessor could not be
reached immediately for comment on Tuesday in the latest twist
in a case that Taiwan's President Tsai Ing-wen has said damaged
the island's reputation and created public mistrust about
supervision of the financial sector.
The move came after the scandal claimed its first victim in
the island's administration on Monday when Ding Kung-Wha, the
chairman of Taiwan's Financial Supervisory Commission (FSC),
stepped down amid mounting criticism over the watchdog's
Ding is also among the officials facing investigation by the
Control Yuan, who served in their respective roles over a period
from 2010 to 2016, the cabinet statement said. Also facing
investigation are ex-FSC chiefs William Tseng and Chen Yu-chang,
and ex-vice chairperson Jennifer Wang.
None of the former FSC officials could be reached for
Preisdent Tsai's opponents on the island said on Monday that
ex-FSC chief Ding's departure was a symbolic political gesture
that put disproportionate blame on the official, who only
assumed his position with the FSC in May of this year.
A veteran of Taiwan's administration not widely known in
international finance circles, Ding previously served as chief
of the Taipei Exchange and as a finance ministry official.
(Reporting by Faith Hung; Editing by Kenneth Maxwell)