Citibank's Sunset in Japan?
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Code : COM0101
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Region : Japan
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Introduction:On September 17th 2004, Citibank was ordered by The Financial Services Agency (FSA), Japan's financial services market monitoring authority to shutdown its private banking operations in the country, citing violation of the country's banking laws. FSA in its probe discovered a string of violations and improprieties at the private banking unit over the past three years 2001-2004. The authority suspended newoperations with immediate effect and gave a year's time to close the total operations. Accepting the charges, Citibank apologized for the violations and announced that it would comply with the orders and also would improve management and internal controls at its other business units. Though there had been several instances of banks violating law in Japan, the treatment meted out to Citibank was considered to be one of the harshest penalties ever imposed. The incident brought into focus again the 'dubious business practices' followed by Citibank as well as initiated a debate on whether the changing banking regulations and disclosure practices in Japan meant trouble for other banks too. |
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