Taiwan's financial regulator says it will investigate Mega Financial Holding Co. after New York state ordered its banking unit to pay a $180 million penalty and install an independent monitor for violating the state's laws against money laundering.

The Financial Supervisory Commission said in a statement that it was looking over records at the bank, and investigating possible violations. The commission said it also intends to strengthen money laundering controls.

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 U.S. regulations, failed to conduct reviews meant to detect suspicious transactions.

U.S. regulators expressed strong concern given that Mega International has branches in Panama, a "high-risk area" for money laundering.