TAIPEI (Reuters) - Taiwanese prosecutors said on Monday they will not indict Mega Financial Holding Co Ltd for violating anti-money laundering rules, after allegations were brought against it by U.S. authorities.

Prosecutors said that while Mega Financial, one of Taiwan’s five-biggest financial firms, may have violated U.S. rules out of ignorance, there was no evidence of intentional wrongdoing.The probe sparked criticism about the effectiveness of the island’s financial regulator and led to the resignation of the Financial Supervisory Commission’s chairman.

New York state authorities alleged the bank’s New York branch was “indifferent” to risks associated with transactions involving Panama, a high-risk area for money laundering. The firm agreed to pay $180 million to settle that case in August last year.

Mega executives were not immediately available for comment.