First Commercial Bank (第一銀行) confirmed that a locally hired employee at its Phnom Penh branch misused client funds through online banking, leaving a shortfall of about US$500,000 (roughly NT$16 million), according to a CNA report. The bank told Liberty Times (LTN) it has filled the shortfall via insurance, taken legal action against the employee, and is seeking damages, while the case remains under administrative review by Taiwan's Financial Supervisory Commission (FSC).
Scope and Timeline of the Fund Misuse
First Commercial Bank (第一銀行) said an employee at its Phnom Penh branch in Cambodia used the bank's online banking system to misuse client funds, leaving a shortfall of about US$500,000 (roughly NT$16 million), according to a report from the Central News Agency (CNA).
According to CNA, First Bank verbally notified Taiwan's Financial Supervisory Commission (FSC) of the incident as a "major contingent event" on July 7, followed by a written explanation on July 17. CNA reported that the FSC's Banking Bureau is currently handling the case through administrative procedure.
Employee Identity and First Bank's Legal Response
Citing First Bank, Liberty Times Net (LTN) reported that the person involved was a locally hired employee of the Phnom Penh branch — not a Taiwanese bank employee. The bank said it had, on discovering the incident, promptly and formally notified both local and Taiwanese regulatory authorities as required.
Separately, CNA quoted First Bank stating it has "zero tolerance" for unlawful conduct and has already taken legal action against the employee, seeking damages for the losses caused.
How the Bank Covered the Client Losses
LTN reported that First Bank has filled the shortfall owed to affected customers, and that the loss is covered by an insurance claim, meaning the branch's own finances are not affected.
This is echoed in First Bank's own five-point statement, carried by LTN, which said the bank has proactively contacted the affected customers and has already filled the shortfall amount, so customer rights are unaffected. The same statement said the incident has no material impact on First Bank's overseas operations or its overall operating and financial condition.
First Bank's Formal Statement and Review Measures
According to LTN, First Bank issued a five-point public statement on the matter, summarized below:
| # | Statement content | Source |
|---|
| 1 | A locally hired employee at the Phnom Penh branch used online banking to misuse client funds; the investigated shortfall is about US$500,000 | LTN |
| 2 | First Bank has notified local and Taiwanese regulatory authorities as required | LTN |
| 3 | First Bank proactively contacted affected customers and has filled the shortfall; customer rights are unaffected | LTN |
| 4 | The case has no material impact on First Bank's overseas or overall operations and finances | LTN |
| 5 | First Bank has taken legal action against the employee and is seeking damages for the losses | LTN |
On the regulatory side, CNA reported the same underlying case: verbal notification to the FSC on July 7 and a written explanation on July 17, with the Banking Bureau handling the matter via administrative procedure.
In the same statement carried by CNA, First Bank said it is conducting a thorough review of the case and actively improving operational deficiencies to strengthen internal controls and prevent similar incidents from happening again.
What This Means
The shortfall figure — about US$500,000, or roughly NT$16 million — is consistent across both the CNA account of the FSC filing and First Bank's own five-point statement carried by LTN, indicating the two source accounts describe the same set of facts rather than diverging figures.
The timeline shows a ten-day gap between First Bank's verbal notification to the FSC on July 7 and its written explanation on July 17, with both CNA's and LTN's reports on the matter published on July 23 — meaning the bank's fuller public and written accounting followed the initial regulatory notification by roughly two weeks.
The bank's response also splits into two separate tracks that both sources confirm: financial recovery for the customer and the branch, handled through an insurance claim that First Bank says leaves branch finances unaffected; and accountability for the employee, handled separately through legal action and a claim for damages.