Japan Shuts Unit of Citibank, Citing Violations

Gee. Money laundering at the world's biggest bank. Who wouldathunkit?

Japan Shuts Unit of Citibank, Citing Violations

by TODD ZAUN
Published: September 18, 2004

OKYO, Sept. 17 - In one of the severest penalties ever imposed on a bank in Japan, regulators on Friday ordered Citigroup to close its Japanese private banking operations because of serious violations of the country's banking laws.

The Financial Services Agency ordered Citibank to shut the four branches in Japan where it offers private banking services to wealthy customers after the agency discovered a string of violations and improprieties over the last three years. The actions cited included failing to put in effect measures to prevent money laundering, overcharging customers for financial derivative products and making loans that helped clients carry out a variety of improper deals, regulators said.

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http://www.nytimes.com/2004/09/18/business/worldbusiness/18citi.html

Wish some our local hacks had that kind of guts.
A good lesson in "financial management" in any case.