Japan's finance ministry to take corrective action against Mizuho - Nikkei
Reuters
Published Nov 24, 2021 09:52PM ET
TOKYO (Reuters) - Japan's finance ministry is set to take punitive action against the banking arm of Mizuho Financial Group over a lack of compliance with the country's foreign exchange law, the Nikkei business daily reported late on Wednesday.
During the incident that took place on Sept. 30, Japan's third-largest lender failed to comply with anti-money laundering procedures necessary under the foreign exchange act in transacting overseas remittances, the Nikkei said.
While checks found no evidence of illegal money remittances, the Ministry of Finance (MOF) decided on the corrective action as Mizuho is one of Japan's largest banks, with a responsibility for payment systems, the Nikkei said.
A Mizuho spokesperson and a finance ministry official in charge of the foreign exchange law both declined to comment when contacted by Reuters.
The finance ministry in August announced a three-year action plan that included tighter supervision of financial institutions in response to a report by the Financial Action Task Force (FATF), a global financial crimes watchdog.
The Sept. 30 issue at Mizuho has also triggered a response from Japan's banking regulator, which is set to issue on Friday a reprimand to the financial group over a series of system glitches, according to two sources with knowledge of the matter.
Mizuho group CEO Tatsufumi Sakai and the head of the firm's main banking unit intend to resign to take responsibility for the problems, one of the sources said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.