meta_id 3272115

On June 25, 2026, Taiwan's Financial Supervisory Commission (FSC) imposed an administrative penalty of NTD 8 million on Hua Nan Commercial Bank (Hua Nan Bank) for violations of banking regulations. The penalty addresses systematic failures in internal controls that enabled employees across multiple branches to misappropriate customer funds and unlawfully retain settlement surplus amounts totalling NTD 4.6286 million. The misconduct occurred across three branches: Jicui, Shilin, and Tainan. Affected employees engaged in fraudulent practices including forging customer seals and signatures to withdraw deposits in both New Taiwan dollars and foreign currency, privately retaining settlement surplus funds, and altering recipient account information for overseas remittances. Nine customers were affected by these incidents. The FSC determined that Hua Nan Bank violated Article 45-1(1) of the Banking Act and provisions of the Financial Holding Company and Banking Internal Control and Audit System Implementation Rules. The violations stemmed from inadequate employee behaviour monitoring systems, insufficient foreign exchange and deposit-withdrawal controls, and poor implementation of internal control procedures. Supervisory staff failed to properly verify transaction documentation and reconcile system records with payment vouchers before approving transactions. The FSC directed Hua Nan Bank to conduct a comprehensive review of transaction systems, operational procedures, and supervisory mechanisms; strengthen integrity culture through management practices and disciplinary systems; review supervisory personnel accountability; pursue legal action against employees involved; and report the three employees to the Joint Credit Information Centre in accordance with Banking Association requirements.