CTBC FHC, on behalf of CTBC Bank, announces that CTBC Bank has been penalized by FSC.

1.Date of occurrence of the event:2023/07/27
2.Circumstances of the violation:According to the Press Release announced on
FSC’s website on July 27, 2023, the fact that the former financial advisor
of CTBC Bank Central Tainan Branch was involved in misappropriating
customers’ funds, recommending customers to conduct multiple transactions in
a short period of time, and handling online banking transactions on behalf of
customers, indicates CTBC Bank’s deficiencies in the continuous transaction
monitoring of deposit accounts for the purpose of anti-money laundering, as
well as the deficiency that its internal control mechanism is not well
established and duly implemented, which has violated the requirements
stipulated in the “Regulations Governing Anti-Money Laundering of Financial
Institutions” and “Implementation Rules of Internal Audit and Internal
Control System of Financial Holding Companies and Banking Industries”.
3.Monetary amount of fines:NT$10,000,000
4.Status of the injunction by the respective competent authority:CTBC Bank was
fined NT$10,000,000.
5.Intended improvement measures:Relevant improvement measures have been
implementated into practice.
6.Effect on the Company’s business operations:None
7.Any other matters that need to be specified:None