萬國法律事務所

In the wake of Mega International Commercial Bank’s regulatory problems, the FSC plans to tighten three parts of the banking regulatory system in an attempt to avoid similar cases in the future.

First, notification items will be added, including rating reductions and identification of suspects subject to sanctions. Second, when joining the Asian Bank Cup, banks will be required to increase money-laundering controls and add special charges. Third, bankers will be required to take certain courses.

The changes will likely result in significantly increased costs for establishing overseas branches. The industry is concerned with the adverse effect of joining the Asian Bank Cup. However, FSC officials have emphasized that the suggested changes are only in the early stages of discussion with the industry, and the final version of changes may be much different.

According to the FSC draft, if a bank’soverseas branch receives reduced ratings in two consecutive weeks, or if there are suspects at the banks subject to sanctions, the bank must notify the FSC. The industry complains that the standards are unclear and that there is no need for notifications for every minute adjustment, as the same would result in reduced efficiency. Also, the need for adding special charges is questionablet, as some overseas branches do not conduct "remittance" business. As for the courses and licenses bankers and related staff members would be required to take, the industry states that the costs of such attendance would be high.