Japan FSA to Issue New Business Improvement Order to Mizuho


Tokyo, Nov. 18 (Jiji Press)--Japan's Financial Services Agency is planning to issue a new business improvement order to Mizuho Bank, which has been hit by a series of system failures, and its parent, Mizuho Financial Group Inc. <8411>, later this month at the earliest, it was learned Thursday.

In the order, to be issued under the banking act, the FSA will urge the bank and its parent to clarify management responsibility for casing system breakdowns eight times this year and take drastic measures to prevent any recurrence of the glitches, informed sources said.

The resignation of Mizuho Financial President Tatsufumi Sakai now seems inevitable.

It has been newly found that the bank's response to the system failure on Sept. 30 gave rise to several dozen flaws in the fight against money laundering in connection with overseas remittance and other transactions, the sources said.

The bank may have violated the foreign exchange and foreign trade act.

[Copyright The Jiji Press, Ltd.]

Jiji Press