You are here
Bank of England fines two Japanese banks for lack of communication with regulator
[LONDON] The Bank of England said it has fined Bank of Tokyo-Mitsubishi UFJ Limited (BTMU) 17.85 million pounds (US$22.44 million), and MUFG Securities EMEA PLC 8.9 million pounds for failing to be open with the regulator about US enforcement action.
The BoE's Prudential Regulation Authority, which regulates banks in Britain, said the two banks - both part of Mitsubishi UFJ Financial Group - failed to be open and cooperative with the watchdog in relation to an enforcement action into BTMU by the New York Department of Financial Services (DFS).
The Bank of Tokyo-Mitsubishi UFJ was fined US$315 million in 2014 for pressuring its consultant to water down a supposedly objective report on BTMU's dealings with sanctioned countries, submitted to DFS, thereby misleading regulators, the PRA said in a statement.
The DFS enforcement action also had implications for the then Chair of MUFG Securities, it added.
The two banks did not inform the PRA of the DFS action until after the DFS' public announcement. "BTMU's inadequate systems and controls for the communication of relevant information contributed to this failure to be open with the PRA," the watchdog said.