Japan's financial regulator ordered Citibank's Japanese arm to suspend its retail sales operations for a month over anti-money laundering deficiencies, marking the second high-profile enforcement action against the bank.
Japanese laws to combat money laundering and terrorist financing fall short in over half of the 49 international standards set by an influential intergovernmental watchdog.
The bank, a subsidiary of Tokyo-Mitsubishi UFJ, said it set aside $10 million after the OCC disclosed that it plans to issue a civil money penalty and cease and desist order against the institution.
The Federal Reserve and New York State Banking Department entered into a written agreement with Sumitomo Mitsui Banking Corp. on Wednesday ordering its New York branch to improve Bank Secrecy Act compliance deficiencies a month after another Japanese bank was cited for risk management deficiencies.
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