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• Author: International Law Group

Japanese regulators penalize Citibank

On September 17, the Financial Services Agency (FSA) of Japan reported that it has halted private banking operations at Citibank Japan's (part of Citigroup, Inc.) Marunouchi branch in Tokyo and at its Nagoya, Osaka and Fukuoka satellite offices for one year starting on September 29. As of the same date, the FSA also ordered Citibank to decline foreign currency deposits from new customers for 30 days. The FSA will revoke their private banking licenses effective on September 30, 2005. The Japanese Securities and Exchange Surveillance Commission (SESC) had asked the FSA to take the above actions; a recent inspection of Citibank Japan's private banking operations turned up many "severe legal violations" and "extremely inappropriate transactions" going on at the four Citibank offices. Article 27 of Japan's Banking Law empowers the government to cancel banking licenses when an institution behaves in a way that is harmful to the public interest. After apologizing for the problems, Citibank Japan pointed out that the sanctions will not impact upon bank services for its retail customers. It subsequently announced that it would comply with FSA directives.

Citation: Associated Press (via Findlaw), Tokyo, Friday, September 17, 2004 at 13:04:42 G.M.T.; The Asian Banker Journal, September 30, 2004.

Paris appellate court upholds acquittals of Diana paparazzi

After the crash that killed Diana Spencer and Dodi Fayed in a Paris traffic tunnel, Mr. Fayed's father, Mohammed al Fayed, filed a criminal complaint for...