Mega Bank fined NT$10m over lax mortgage controlsBy Kao Shih-ching / Staff reporterState-run Mega International Commercial Bank (兆豐銀行) was yesterday fined NT$10 million (US$360,972) for its lax internal control over 28 mortgages totaling NT$350 million, whose applications were made by dummy accounts, the Financial Supervisory Commission said. Mega Bank became the nation’s third bank to be punished for failing to detect mortgage applications made by dummy accounts. Hua Nan Commercial Bank (華南銀行) was fined NT$3 million in 2016 for offering mortgages to 34 figurehead accounts, some of whom belonged to vagrants, and Hwatai Bank (華泰銀行) was fined NT$3 million in 2018, commission data showed. However, the lender last year found in an internal audit that the mortgage applications were made by figureheads who used funds from a third party to repay the loans, Huang said. Mega Bank has estimated that it would likely incur a loss of NT$22 million due to the 28 problematic mortgages, Huang said.

Source: Taipei Times June 08, 2021 15:56 UTC