Taiwan’s FSC fines Taishin International Bank $310k over improper payment collection

The bank had failed to establish proper internal control systems

Taiwan’s Financial Supervisory Commission fined Taishin International Bank $310k (NT$10m) after discovering that the bank, in collecting on overdue accounts and conducting its lending business, had used improper methods in seeking to collect payments from a third party other than the debtors or their guarantors, and had failed to establish internal controls for authorizing sales representative to adjust the approved interest rate (fees).

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“These deficiencies revealed that the bank had failed to establish proper internal control systems in violation of Article 45-1, paragraph 1 of the "Banking Act" as well as Article 3 and Article 8, paragraph 3 of the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries," enacted in accordance with Article 45-1, paragraph 1 of the "Banking Act,” the FSC said.