UPDATE 2-Taiwan's Mega Financial chairman resigns amid New York banking unit scandal

miércoles 31 de agosto de 2016 05:17 GYT

* Chairman seeks to quash speculation he could influence probe

* Chairman Shiu is also brother-in-law of central bank governor

* Mega fined $180 mln for violating US anti-money laundering rules

* President Tsai says scandal has damaged Taiwan's reputation (Recasts and adds comments President Tsai)

By Faith Hung and J.R. Wu

TAIPEI, Aug 31 (Reuters) - Taiwan's Mega Financial Holding Co said its chairman has resigned, seeking to quash speculation that he could influence a domestic probe into its banking unit after it was found to have violated U.S. anti-money laundering regulations.

Chairman Shiu Kuang-si, who was Mega Financial's president for eight years until 2014, is also the brother-in-law of Taiwan's central bank governor.

Mega this month agreed to pay $180 million to New York state's financial regulator for violations that included lax attention to risk exposure in Panama.

The U.S. fine, the first for a Taiwan-based financial institution in a decade, has prompted Taiwanese prosecutors to summon current and former executives of Mega Financial for questioning.   Continuación...