The investigation comes as regulators across the globe step up financial scrutiny following the leak of a trove of data about offshore accounts set up by a Panamanian law firm.
Taiwan's Financial Supervisory Commission said in a statement seen Tuesday that it was looking over records at the bank, and investigating possible violations.
New York's Department of Financial Services announced the fine for Mega International Commercial Bank last Friday. It ordered the bank to beef up compliance after finding its staff, unfamiliar with US regulations, failed to conduct reviews meant to detect suspicious transactions.
They did not say if the bank had been implicated in money laundering but chastised it for failing to report "fraud, dishonesty, making of false entries and omission of true entries and other misconduct."
More From This Section
The government-appointed chairman of Mega Financial Holding, Chen Sung-hsin, told reporters in Taiwan that the bank was not engaged in money laundering, but had failed to keep up with regulatory requirements.
"The regulations are much tighter than in the past and we could not manage to meet them," he said.
The reports detailed how world leaders, celebrities and businesses were using offshore companies to hide money.