Over 60 Bank Employees Accused of Receiving Kickbacks; FSC Orders Comprehensive Review

(CNA reporter Su Ssu-yun, Taipei, June 6) The Financial Supervisory Commission (FSC) announced today that prosecutors and police recently investigated bank branches and discovered bank employees had accepted kickbacks from land registrars. So far, 15 banks have successively reported this as a significant incident, involving more than 60 employees. The FSC will request all banks to comprehensively review whether similar cases exist and strengthen employee training and legal awareness campaigns.

Chou Cheng-shan, Chief Secretary of the FSC’s Banking Bureau, stated that starting June 16, 15 banks began reporting significant incidents regarding law enforcement investigations into bank employees receiving kickbacks from land registrars. The case involves bank officers handling loan operations who referred acquaintances—land registrars—to assist with real estate mortgage registration and related clerical work, in return for which the land registrars provided kickbacks. More than 60 employees are implicated.

Chou emphasized that the FSC will require all domestic banks to conduct comprehensive checks for similar misconduct. All banks currently have internal control regulations prohibiting employees from accepting any form of kickback. Failure to comply may constitute inadequate internal controls, punishable by fines ranging from NT$2 million to NT$50 million. However, it is too early to discuss penalties at this stage. In addition to supervising thorough investigations, the FSC will also reinforce employee education, training, and legal awareness initiatives.

Ku Kun-jung, Deputy Director of the FSC’s Inspection Bureau, said that after banks reported the significant incident, the bureau dispatched personnel to conduct on-site inspections, reviewing the credit quality of related lending cases. Inspections were completed by the end of June, and results have been handed over to the Banking Bureau.

Chou reiterated that current regulations strictly prohibit employees from accepting any form of kickback. If employees fail to fully comply, it raises concerns about internal control effectiveness, and responsibilities must be clarified. The 15 banks are currently in the process of submitting statements. Given the large number of banks and employees involved, the FSC will urge banks to enhance training and legal education. (Edited by Yang Lan-hsuan) 1150806