Taiwan's Financial Supervisory Commission fined Citibank Taiwan Ltd. NT$6 million due to misconduct by one of its employees, and NT$2.5 million due to a glitch in its credit card billing system, the Taipei Times reported Feb. 2, citing the regulator.
The commission found that the bank's internal control measures failed to detect misconduct by a financial adviser, who had engaged in questionable transactions with a client since April 2010. The employee was said to have recommended products to the client that were not part of the bank's offering, and kept documents signed by the client and later used them to authorize transactions without the client's knowledge.
The bank notified the commission after detecting the fraud transactions and terminated the unnamed employee.
Further, the commission fined the bank NT$2.5 million after a system glitch caused it to overcharge its credit card clients. The extra charges totaled approximately NT$31 million and affected about 300,000 clients.
The bank said it plans to reimburse affected clients before the end of the first quarter.
As of Feb. 1, US$1 was equivalent to NT$29.24.
