Citigroup censured in Japan
(21 September 2004 – Japan) Citigroup’s Japanese commercial banking business has been ordered to close down operations in Osaka, Nagoya, Fukuoka and in one Tokyo branch.
Japan’s regulator, the Financial Services Agency (FSA), announced it had found a list of discretions at the offices, such as poor protection of customer information, improper trading practices and failure to curb suspected money laundering activities.
Citigroup must close all accounts within a year, before closing the doors at the branches.
In response, the bank has sacked six members of staff, cut the wages of eight others, and reprimanded a further number.
The FSA’s findings come just three months after the regulator censured Citigroup for losing customer details and data.
"Citibank Japan sincerely apologises for the problems identified in the FSA orders and is earnestly addressing the issues raised and working to prevent their recurrence," the bank said in a statement.
The bank will submit a plan to the FSA outlining its strategies to ensure the problems do not reoccur.
Citigroup must close all accounts within a year, before closing the doors at the branches.
In response, the bank has sacked six members of staff, cut the wages of eight others, and reprimanded a further number.
The FSA’s findings come just three months after the regulator censured Citigroup for losing customer details and data.
"Citibank Japan sincerely apologises for the problems identified in the FSA orders and is earnestly addressing the issues raised and working to prevent their recurrence," the bank said in a statement.
The bank will submit a plan to the FSA outlining its strategies to ensure the problems do not reoccur.