Japan suspends Citibank's retail operations for a month

Japan's Financial Services Agency (FSA) today issued orders suspending all sales operations (including advertisement, sales campaign and publicity and solicitation) pertaining to all products that are handled by the retail banking division of Citibank Japan Ltd, from 15 July 2009 to 14 August 2009.

The ban, however, will not preclude sales operations (including the explanation of products) in cases where there are any voluntary manifestations of intention by customers and where such manifestations of intention can be objectively found, the agency said in a release.

Under the orders, issued under Article 26(1) of the Banking Act, the FSA has asked Citi to fundamentally review and restructure the current governance, internal control and business management system (including adequate staffing and the construction of a proper organisation and structure) of the Citibank Japan Ltd;

Clarify the business attitude of the board of directors and management committee towards the establishment and enhance governance and internal control systems;

Develop and enhance a system for accurate execution of the obligation to make notification of suspicious transactions, including money laundering; and establish a system for the control, monitoring, cancellation, etc of transactions, etc subject to notification;

Ensure a thorough understanding of and compliance to laws and regulations and other rules by officers and employees and foster and improve awareness of compliance with laws and regulations;