FSC imposes administrative penalty on Hua Nan Commercial Bank
2024-03-05
Hua Nan Commercial Bank (hereinafter referred to as the Bank) was found to have deficiencies when assisting Financial Information Service Co. to process the transfer of uniform invoice lottery prize money to the accounts of prize winners on June 6, 2023. The deficiencies indicated that the Bank had failed to establish adequate measures to protect customer interests, enforce regulations regarding information system conversion, implement reporting procedures for major contingencies, and provide an audit report which fully outlined the incident’s progression. These deficiencies showed that the bank had failed to properly establish and rigorously implement internal controls, in violation of Article 45-1, Paragraph 1 of the "Banking Act", and regulations in Article 3, Paragraph 1 as well as Article 8, Paragraph 1 of the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries" established based on the authorization therein. The FSC therefore imposed an administrative penalty of NT$4 million upon the Bank in accordance with Article 129, Subparagraph 7 of the "Banking Act."
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Update:
2024-03-05