Watchdog orders Mizuho Bank to stop loans to Japan's gangsters
AFPTOKYO--Japan's financial watchdog on Friday ordered one of the country's biggest banks to stop lending money to gangsters, saying it has made little progress in tackling the problem.
September 28, 2013, 12:05 am TWN
Mizuho Bank had processed hundreds of transactions worth about 200 million yen (US$2.0 million) for “anti-social forces,” a common term for Japan's yakuza mobsters.
The Financial Services Agency scolded Japan's third-biggest bank for taking “no substantial steps” in dealing with the issue after it was first discovered two years ago, and pointed to “serious problems” with its compliance monitoring.
Mizuho has one month to draft a plan to address the issue, the watchdog said.
In response, the lender said it “takes this order very seriously and deeply regrets these occurrences.”