Taiwan Names Former Finance Official Lee Top Financial Regulator

  • Lee Ruey-tsang appointed for finance, government experience
  • Predecessor Ding resigned over Mega Bank controversy

Taiwan named former Deputy Finance Minister Lee Ruey-tsang as chairman of the Financial Supervisory Commission after his predecessor resigned to contain the fallout from a controversy over anti-money laundering lapses at Mega International Commercial Bank Co.

Taiwan’s Premier Lin Chuan selected Lee to head the country’s financial regulator because of his experience in the government and financial sectors, cabinet spokesman Hsu Kuo-yung said while announcing the appointment Wednesday. Lee was Lin’s deputy when the premier was Minister of Finance, and last year was appointed chairman of Taiwan’s Bank of Kaohsiung.

Ding Kung-wha stepped down as FSC chairman earlier this month saying he wanted to “maintain his innocence” and to contain any damage to the regulatory body over its handling of the Mega issue.

The New York Department of Financial Services imposed a $180 million fine on Mega in August for violating the state’s anti-money laundering laws. Taiwan plans to investigate six current and former Finance Ministry and FSC officials over supervision failures related to the lender’s New York branch. In September, the FSC said it will prevent the bank from applying to establish new overseas outlets.

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