ID :
67975
Sat, 06/27/2009 - 15:47
Auther :
Shortlink :
https://oananews.org//node/67975
The shortlink copeid
Citibank told to suspend retail sales over money laundering concerns+
Citibank told to suspend retail sales over money laundering concerns+
TOKYO, June 26 Kyodo -
The Financial Services Agency on Friday ordered Citibank Japan Ltd. to suspend
sales activities at its retail banking division for one month from July 15
because of its slack money laundering controls that allowed the opening of
several hundred accounts for crime syndicates and other ''antisocial' bodies.
It is the second administrative punishment for the U.S. bank over insufficient
measures to prevent money laundering, following the first one in September
2004.
All sales operations at Citibank Japan's retail banking division in Japan will
be suspended, including advertising, sales campaigns and solicitation, from
July 15 to August 14, but the bank will be allowed to provide services to new
and existing customers at their request, the FSA said.
The agency also required the bank to clarify its management responsibility and
to submit an initial report on business improvement measures by July 31 as well
as follow-up reports every three months.
Despite the FSA's first administrative order to Citibank Japan to ensure
anti-money laundering checks, the agency concluded that the bank had not taken
sufficient steps.
The bank's arrangements concerning the reporting of suspicious transactions,
notably money laundering, hinge on detection chiefly through a database.
However, the data entered in the database are ''extremely limited,'' the agency
said in a statement, adding ''the database has not been updated since 2004.''
''Procedures to control any dealing with anti-social forces have not been
developed,'' it said.
Citibank Japan issued a statement the same day expressing its ''sincere
apologies'' to customers and others. ''Citibank Japan is committed to implement
all necessary measures to prevent any future occurrence of the problems
identified,'' it said.
Citibank Japan's failure to develop sufficient anti-money laundering systems
was found after the bank reported to the FSA last August that it had one
account belonging to a crime syndicate. The agency ordered the bank to
investigate the process whereby such an account was opened, and more
problematic accounts were found later.
Banks are required by law to notify the government of any suspicious
transactions as soon as they are found in order to prevent money laundering.
Citibank Japan handles retail and corporate banking operations, with a total of
35 branches in Japan. As of the end of March, it had 6.19 trillion yen in total
assets and 1,548 employees.
==Kyodo
2009-06-26 22:12:16
TOKYO, June 26 Kyodo -
The Financial Services Agency on Friday ordered Citibank Japan Ltd. to suspend
sales activities at its retail banking division for one month from July 15
because of its slack money laundering controls that allowed the opening of
several hundred accounts for crime syndicates and other ''antisocial' bodies.
It is the second administrative punishment for the U.S. bank over insufficient
measures to prevent money laundering, following the first one in September
2004.
All sales operations at Citibank Japan's retail banking division in Japan will
be suspended, including advertising, sales campaigns and solicitation, from
July 15 to August 14, but the bank will be allowed to provide services to new
and existing customers at their request, the FSA said.
The agency also required the bank to clarify its management responsibility and
to submit an initial report on business improvement measures by July 31 as well
as follow-up reports every three months.
Despite the FSA's first administrative order to Citibank Japan to ensure
anti-money laundering checks, the agency concluded that the bank had not taken
sufficient steps.
The bank's arrangements concerning the reporting of suspicious transactions,
notably money laundering, hinge on detection chiefly through a database.
However, the data entered in the database are ''extremely limited,'' the agency
said in a statement, adding ''the database has not been updated since 2004.''
''Procedures to control any dealing with anti-social forces have not been
developed,'' it said.
Citibank Japan issued a statement the same day expressing its ''sincere
apologies'' to customers and others. ''Citibank Japan is committed to implement
all necessary measures to prevent any future occurrence of the problems
identified,'' it said.
Citibank Japan's failure to develop sufficient anti-money laundering systems
was found after the bank reported to the FSA last August that it had one
account belonging to a crime syndicate. The agency ordered the bank to
investigate the process whereby such an account was opened, and more
problematic accounts were found later.
Banks are required by law to notify the government of any suspicious
transactions as soon as they are found in order to prevent money laundering.
Citibank Japan handles retail and corporate banking operations, with a total of
35 branches in Japan. As of the end of March, it had 6.19 trillion yen in total
assets and 1,548 employees.
==Kyodo
2009-06-26 22:12:16
