MUFG Bank reprimanded for securities-related lapses

MUFG Bank has received a reprimand from the Japan’s Association of Real Estate Securitization in relation to inappropriate securities-related activities with Mitsubishi UFJ Morgan Stanley Securities (MUMSS).

“We sincerely apologize again for the inconvenience and concern this is causing our customers and stakeholders,” the Japanese bank said in a statement posted on the MUFG website.

The Financial Services Agency of Japan (FSA) had earlier sanctioned MUFG Bank JPY250m and MUMSS JPY200m for breaches, including improper sharing of customer information between the two entities, insufficient legal compliance in their collaboration. As well as issues in internal risk management, amongst others.

MUMSS also received a strict warning from the Japan’s Association of Real Estate Securitization.

MUFG is a Tokyo-headquartered bank with over 2,000 locations and 140,000 employees across 40 markets.