The FSC recently discovered that former employees of KGI Bank had misappropriated customers' funds and engaged in abnormal fund transactions with customers that revealed a failure to properly establish and sufficiently implement internal controls, in violation of Article 45-1, paragraph 1 of the "Banking Act" as well as Articles 3 and 8 of the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries," which were adopted on the authority of said Article 45-1. The FSC therefore imposed an administrative fine of NT$6 million on the bank in accordance with Article 129, subparagraph 7 of the same Act.