Cathay World Bank has two agents who are responsible for self-stealing. One of them embezzled about 46.98 million yuan of customers’ money in six years starting from 2015. He took advantage of customers’ trust to obtain online banking passwords and set them as agreed transfer accounts, “defrauding customers can save taxes.” “The reason is that the client’s foreign currency assets were transferred out to subsidize other clients. 6 clients were robbed of NT$46.98 million, and another client stole NT$500,000, for a total of NT$47.48 million. Today (19th), the Financial Supervisory Commission imposed a heavy fine of NT$12 million.
Cathay Shihua Banking Co., Ltd. misappropriated more than 47.48 million yuan in six years and was heavily fined 12 million yuan.File photo: Central News Agency
Hou Liyang, chief secretary of the Banking Bureau of the Financial Supervisory Commission, said that this year, due to illegal activities such as misappropriation of client funds, Citigroup was fined NT$6 million in March, Taishin was fined NT$8 million in June, and CITIC was fined NT$10 million in August this year. , Cathay World Bank was fined NT$12 million, and Cathay Pacific Bank was the company that was fined the most due to the total amount of illegal misappropriation cases involving the law firm approaching NT$50 million.
The Financial Supervisory Commission stated that Cathay Pacific Bank received reports from customers and conducted an internal investigation, and discovered that the former financial management specialist of Yonghe Branch and the former clerk of Xinsheng Branch were involved in misappropriation of customer funds. The bank has not perfected its monitoring mechanism for fund transactions between its agents or its related accounts and customers, as well as its tracking and monitoring mechanism for logging into online banking using the same IP address. It has also failed to supervise its employees to comply with the code of conduct. It has also failed to fully establish and implement internal policies. To control the system, a fine of NT$12 million was imposed.
Yonghang Branch No. 1 manager embezzled nearly 47 million yuan in foreign currency assets from customers
Officials from the Banking Bureau stated that from November 2015 to December 2011, a former general manager of Yonghe Branch took advantage of customers’ trust to obtain online banking passwords, and asked customers to set the accounts of other customers or accounts related to the staff as the agreed transfer account. ; and then used online banking to transfer customers’ foreign currency funds to subsidize other customers. Six customers were affected, and the amount involved was approximately 46.98 million yuan.
A specialist from Xinsheng Branch agreed to transfer 500,000 yuan from a customer
Moreover, during the investigation, the bank found that Li, a former clerk at Xinsheng Branch, secretly helped customers apply for online banking functions when they opened deposit accounts in 2017, obtained the online banking password, and then set it when the customer set up the agreed transfer account. The account of its related party took the opportunity to misappropriate customer funds to the account of its related party. One customer was affected, and the amount involved was approximately 500,000 yuan.
The Financial Supervisory Commission stated that the monitoring mechanism for fund transactions between financial institutions or their related accounts and customers has not been fully established. The bank currently does not include foreign currency account transactions in its relevant monitoring reports on the cash flow activities of accounts within the bank of financial professionals, related parties and management customers, and has not yet fully established the relevant monitoring mechanism.
In addition, the competent authority also believes that Cathay Pacific Bank has not fully established a tracking and monitoring mechanism for using the same IP to log in to online banking: although the bank has produced relevant reports for its attorneys and customers who have the same IP and vehicle to log into online banking in a short period of time, it has We did not further understand the reasons for the same IP or continue to track and monitor, resulting in the failure to discover the fraud in this case in time.
Finally, the FSC concluded that the bank failed to effectively supervise employees to comply with the code of conduct. Although the bank’s “Code of Conduct Strictly Prohibits Relevant Conduct Between Bankers and Customers” prohibits bankers from keeping, changing, obtaining customer passwords, and executing transactions on behalf of customers, the bank failed to supervise case-related personnel to comply with this code. leading to fraud.
In addition to the NT$1,200 fine, the Financial Supervisory Commission also requires additional capital.
In addition to a fine of NT$12 million, the Financial Supervisory Commission stated that in accordance with Article 18, paragraph 3, of the “Bank Capital Adequacy and Capital Level Management Measures”, the bank is required to increase capital provisions related to operational risks in connection with the second pillar supervisory review. In addition, Cathay World Bank has also been required to increase capital in two previous cases. Officials from the Banking Bureau said that an additional provision of more than 4.7 billion yuan is expected.
The Financial Supervisory Commission stated that preventing abnormal behavior of managers or bank employees depends on the shaping of a bank’s integrity culture and the construction of a sound code of ethics. In addition to continuously improving and strengthening the effectiveness of internal controls, banks must also involve all employees to participate and take the initiative. Only through execution can we truly achieve the internal control objectives, provide the public with a safe trading environment and maintain the public’s trust in the bank. The Financial Supervisory Commission once again appeals to the public not to hand over personal online banking passwords to financial advisors or bankers in private, or to set up online banking transfer accounts or transfer funds to other people’s accounts according to the instructions of financial advisors or bankers, and to check their statements regularly. to safeguard their own rights and interests.
Cathay World Bank: Humbly review
Cathay World Bank stated that it will humbly review the sanctions imposed by the Financial Supervisory Commission. The Bank proactively dealt with the problem as soon as possible and conducted extensive checks on potentially affected customers to ensure the rights and interests of customers. The Bank has fired the employee and held him legally accountable. It has also conducted an in-depth review of internal operating procedures, actively strengthened relevant control measures, and strictly requires colleagues to comply with relevant laws and regulations in order to prevent similar incidents from happening. “
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Yahoo Finance special correspondent Ye Yiru: 22 years of experience in mainstream financial media. From the Web1.0 bubble in 2000 to the Meta Yuanverse Web3.0, he has witnessed the rise and fall of Taiwan’s large and small enterprise groups and has experienced five international financial crises. We believe that finance is life and is everywhere. No matter how difficult financial knowledge is, we should explain it in a simple way. Everyone, young and old, should manage money. If you don’t manage money, money will not care about you.
2023-12-19 08:21:55
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