Bonds News

UOB ceasing foreign currency banknotes import in Taiwan - sources

TAIPEI, May 18 (Reuters) - United Overseas Bank (UOB) will stop supplying foreign currency banknotes to lenders in Taiwan from June 18 amid concern on tighter anti-money laundering rules in the region, four sources with direct knowledge of the matter said.

The move by the Singapore bank would effectively leave Bank of America (BoA) the only foreign currency banknotes distributor in Taiwan.

UOB was not immediately available for comment.

Currently, UOB and BoA are the only banks to import foreign currency banknotes to meet demand from Taiwanese lenders.

BoA may also cut down on the business, one source said.

A Taiwanese central bank official confirmed it has appointed four local banks to do the business to ensure there’s no shortage of foreign currency.

The four are Mega International Commercial Bank, Bank of Taiwan, Taiwan Cooperative Bank and First Bank, according to the sources. (Reporting by Liang-sa Loh; Editing by Richard Borsuk)