TAIPEI (Taiwan News) — Six managers from Taichung Commercial Bank and Wan Li Development Chair Hung Yueh-peng (洪岳鵬) are suspected of opening accounts for shell companies and laundering up to NT$3.6 billion (US$112 million), according to the Taichung District Prosecutors Office.
The office on Thursday indicted seven people in the case, per CNA. Prosecutors said Hung was involved in gambling, fraud, and money laundering. The probe was conducted in coordination with the Investigation Bureau and the Criminal Investigation Bureau.
Prosecutors said they searched the company and four branches of the bank three times. They also seized more than NT$200 million in assets belonging to Hung and a manager surnamed Chang (張).
The Taichung District Court ordered the detention of Hung, Chang, and another manager surnamed Chuang (莊). The remaining bank managers were released on bail.
According to prosecutors, the managers helped Hung open 12 accounts under shell companies with no actual operations. They also increased the transfer limits on the accounts.
When the bank’s system flagged the accounts as potentially involved in money laundering, they delayed reporting to the Financial Supervisory Commission and failed to suspend the accounts in time, the office said.
The commission said the case was discovered last year during a routine inspection of the bank. It added that it would continue investigating the managers’ involvement and whether other suspects were involved before deciding on further penalties.
The bank said it will continue to assist prosecutors in the investigation. It said the case has not affected its operations, adding that all risk management controls comply with regulations.
Wang Kuei-feng (王貴鋒), former chair of the bank, is separately accused of using NT$1.1 billion in company funds to lease luxury cars for personal use and remains on the board. The commission said it will continue to oversee the bank’s operations and has ordered improvements.
