Citibank Taiwan Limited (the Bank) conducted batch upload whereby transaction files were not successfully processed and posted to the host system, resulting in incorrect TWD account balances. It revealed that the Bank’s lack of sufficient controls on system stability, reliability and security. FSC concluded that the Bank’s internal control is not effective in the following aspects, namely, failure to establish effective internal control and audit system to supervise the outsourcing vendor; and lack of effectiveness in executing the relevant controls on system hardware and software, staffing, testing and validation processing. It violates paragraph 3 of Article 45-1 of the Banking Act at the time the deficiencies occurred so FSC imposed a penalty of TWD5,000,000 on the Bank according to subparagraph 7 of Article 129 of the Banking Act.