Shocking the Taiwanese financial sector! Six executives from Taichung Bank colluded with a fraud ring, involved in helping to launder 3.6 billion yuan

Taichung Bank executives involved in collusion with fraud groups, assisting in opening dummy accounts to evade anti-money laundering measures, covering up a cash flow of up to 3.64 billion yuan. Prosecutors have seized nearly 270 million yuan in assets and charged 7 individuals with violations of the Banking Act and Anti-Money Laundering Law.

Fraud groups infiltrate Taichung Bank executives, involved in over 3.6 billion yuan in money laundering

A major case of bank employees colluding with scam and gambling groups has shocked the financial industry! According to United News Network, the Taichung District Prosecutors Office found that Hong Yuepeng, the responsible person of Wanli Development Company, actively infiltrated the financial system for money laundering purposes and recruited several senior managers from Taichung Bank to join the criminal organization.

Today (4/23), prosecutors formally charged Hong Yuepeng and six bank managers, totaling seven people, with violations of the Banking Act of breach of trust, Anti-Money Laundering Law involving large-scale money laundering, and the Organized Crime Prevention Act. The case involves illegal funds totaling 3.64 billion yuan, severely impacting the domestic financial regulatory system.

Bank executives abuse their authority to shield fraud groups, evading AML measures

Prosecutors pointed out that Hong Yuepeng is suspected of conspiring with managers and assistant managers at four branches of Taichung Bank in Tanshui, Beitun, Zhongzheng, and Toufen. From September 2024 to April 2025, these bank managers allegedly abused their authority to assist the group in opening financial accounts under the names of shell companies like Jiajia Industrial Co., Ltd., which have no actual operations.

These managers, during account opening, even failed to retain required ID photos and deliberately increased the transaction limits of these business accounts. When the dummy accounts triggered suspicious activity alerts, the involved bank managers would deliberately shield the accounts, delaying reports of anomalies to supervisory authorities.

Even after reporting suspicious activity, they neglected to implement measures such as suspending, restricting, or terminating transfer transactions, allowing illegal proceeds from scams and online gambling to be quickly transferred out. They immediately moved funds through online banking, layering transfers to obscure the source and destination of large criminal funds.

Prosecutors and police conduct multiple raids, seizing nearly 270 million yuan in illegal proceeds

The Investigation Bureau’s Aviation Investigation Division, after months of evidence collection, launched operations. According to Mirror News, the task force used strategies tracing funds and source identification of managers, conducting three waves of searches at Wanli Development and multiple Taichung Bank branches.

Authorities seized deposits, real estate, stocks, and luxury cars under the names of Hong Yuepeng and involved managers, totaling over 269 million yuan.

Taichung prosecutors have completed interrogations, and three individuals—Hong Yuepeng, Manager Zhang of Tanshui Branch, and Manager Zhuang of Toufen Branch—have been granted detention. Other involved individuals include Huang, a manager at Zhongzheng Branch, released on 10 million yuan bail; Yao, a manager at Beitun Branch, released on 6 million yuan; Su, an assistant manager at Beitun Branch, released on 500k yuan; and Chen, an assistant manager at Zhongzheng Branch, who was released without bail.

Taichung Bank also issued a major announcement on April 1, stating that the bank is cooperating with the investigation bureau’s search and questioning procedures, emphasizing that there is no impact on the company’s overall finances and operations.

According to the 165 Fraud Prevention Dashboard, Taiwan’s scam groups are rampant, with nearly 5 billion yuan in reported damages in March. Now, with fraud groups directly colluding with bank executives, financial institutions are re-evaluating not only external anti-fraud and anti-money laundering measures but also internal controls—questioning whether there are internal “insiders” as vulnerabilities within banks.

This article is compiled by Crypto Agent from various sources, reviewed and edited by Crypto City. It is still in training, so there may be logical biases or factual errors. Content is for reference only and should not be considered investment advice.