Japan considers crackdown on AML and data protection

Daily news headlines

TOKYO - A number of control failures at Japanese financial services firms, which occurred even after warnings were issued by the country's regulators, has prompted Japan's finance minister to suggest tougher enforcement penalties be introduced.

In a recent speech, finance minister Kaoru Yosano said financial regulators might have to introduce tougher penalties for financial institutions that fail to properly adhere to data protection and anti-money laundering requirements.

Yosano's comments follow a data breach at Mitsubishi UFJ that led to a former employee of its brokerage unit stealing 1.5 million customer records. Although the Japanese Financial Services Authority (JFSA) ordered Mitsubishi to overhaul its internal security following the incident, Yosano said tougher sanctions might be needed to provide banks greater incentive to deter such episodes.

Meanwhile, Citigroup was ordered by the JFSA to suspend its marketing of individual banking services after its internal controls were found to be inadequate for preventing money laundering.

"Unless financial institutions properly monitor for money laundering, we won't be able to discover fraudulent money flows," said Yosano.

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: