1.Date of occurrence of the event:2017/01/26

2.Circumstances of the violation:For the cash transaction exceeding a certain amount of money stipulated in Money Laundering Control Act, Chang Hwa Commercial Bank, Ltd. (“the Bank”) failed to report to the Ministry of Justice Investigation Bureau. As a result the Bank violated paragraph 1, Article7 of Money Laundering Control Act and Article4 of “Regulations Governing Cash Transaction Reports (CTR) and Suspicious Transaction Reports (STR) by Financial Institutions” enacted by Financial Supervisory Commission(“FSC”).

3.Amount of administrative fines:NTD 1,800,000

4.Status of the disposition by said competent authority: The Bank has been fined NTD 1,800,000 by FSC.

5.Intended remedial measures: The Bank has completed the follow-up reporting process, and improved the reporting function of cash transaction exceeding a certain amount of money with the related computer system. The Bank will constantly strengthen Anti-Money Laundering Policy and enhance the staff training.

6.Effect on the Company’s business operations:None

7.Any other matters that need to be specified:None