According to the Associated Press, the Japanese regulator ordered the company to tighten compliance in its overseas banking operations as well as its mutual fund sales. In addition, the Financial Services Agency (FSA) has asked the group to submit an operations improvement plan by July 11, 2007.
Citing a statement by the FSA as a source, Bloomberg reported that the regulator discovered administrative errors as a result of negligence in relation to investment sales, which included misplacing orders for investment trusts.
This disciplinary action represents the fifth such order taken against Mitsubishi UFJ (MUFJ) in less than a year, the Associated Press revealed. These involved misconduct in relation to money laundering at its New York branch.
In response to this, Mitsubishi UFJ Financial Group, the parent company of MUFJ, has released a statement and said that it is currently seeking to ensure that its businesses across the group have an appropriate business management and compliance structure, and hopes to regain the trust of its customers.
