FSC – Financial Treason & Crime

Kao Shih-ching, 13 May 2021

The Financial Supervisory Commission (FSC) yesterday fined Citibank Taiwan Ltd (花旗台灣) NT$10 million (US$357,194) and DBS Bank Taiwan (星展台灣) NT$6 million for breaches of the nation’s anti-money laundering (AML) regulations.

The NT$10 million fine is the highest penalty that it has imposed on a domestic bank, the commission said.

Citibank Taiwan failed to set up a sound mechanism for evaluating clients’ risk of money laundering and for detecting suspicious transactions, Banking Bureau Deputy Director-General Huang Kuang-hsi (黃光熙) told a news conference in New Taipei City Continue reading “Article: Citibank Taiwan, DBS Bank Taiwan hit for AML failings”

04/06/202105/01/2021

Article: Tougher penalties come into force for naked short selling

Article - Media, Publications

Tougher penalties come into force for naked short selling

Choi Jae-hee, 06 April 2021

Investors engaged in naked short selling will be fined up to 100 percent of their order amount, the nation’s top financial regulator said Tuesday.

According to the policymaking Financial Services Commission, the revised Capital Markets Act, which imposes tougher penalties for naked short selling, has taken effect on the same day.

Short selling is a trading tactic where investors immediately sell borrowed stocks on a bet that share prices will fall, allowing them to later repurchase stocks and return them to the lender. Some investors sell stocks without borrowing, known as “naked” short selling, which is currently illegal in the local capital market. Continue reading “Article: Tougher penalties come into force for naked short selling”

03/23/202103/23/2021

Article: Taiwan Regulators Steps Up Scrutiny of Clubhouse App

Article - Media, Publications

Taiwan Regulators Steps Up Scrutiny of Clubhouse App

Ranamita Chakraborty, Regulation Asia, 23 March 2021

The social media app restricts voice recording without the consent of every speaker in a chat room, which may create a loophole for stock manipulators.

Taiwan’s FSC (Financial Supervisory Commission) is reportedly looking into ways to monitor suspected stock market manipulation on Clubhouse, an exclusive invitation-only social networking app based on audio-chat. Continue reading “Article: Taiwan Regulators Steps Up Scrutiny of Clubhouse App”

11/28/201803/18/2021

Article: Goldman Sachs hit with £5.2m fine for short selling

Article - Media, Publications

Goldman Sachs hit with £5.2m fine for short selling

James Booth, 28 November 2018

South Korea’s financial regulator has hit Goldman Sachs with a 7.5bn won (£5.2m) fine for breaking rules on short-selling.

The fine is for short-selling without securing underlying assets, the Financial Services Commission (FSC) said in a statement. Continue reading “Article: Goldman Sachs hit with £5.2m fine for short selling”

06/15/201804/27/2020

Article: Penalties for Naked Shorting Selling Too Light

Article - Media

Penalties for Naked Shorting Selling Too Light

Yoon Youngsai

BusinessKorea, 15 June 2018

The Seoul branch of Goldman Sachs placed short selling orders for 350 KOSPI and KOSDAQ stocks on May 30. Of the 350 stocks, the Seoul branch failed to buy back 20 stocks totaling about 1.38 million shares in time until the deadline for settlement on June 1, indicating the 20 stocks were not in its possession at the time. Each of the 350 stocks can be considered a separate transaction.