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1.Having received the results of an investigation into Mizuho Bank Co., Ltd. (notification of results: June 2013) and requested a report in accordance with Article 24.1 of the Banking Act, the FSA has determined serious problems with the Bank’s postures toward administrative control, internal control, and legal/regulatory compliance, including:
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(1)the fact that no substantial steps were taken to prevent/break off transactions with anti-social forces for more than two years after it was ascertained that tie-up loans (*Note) had been provided to multiple anti-social forces, and
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(2)the fact that information on the existence of numerous transactions with anti-social forces went no farther than the executive in charge.
(Note) A loan for which a consumer credit company receiving an application from a customer screens and approves the customer, and a financial institution makes the loan to the customer on condition of a guarantee from the consumer credit company.
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2.Accordingly, the FSA has today issued to this Bank a business improvement administrative order as described below in keeping with the provisions of Article 26.1 of the Banking Act.
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(1)In order to make a clean break from anti-social forces and ensure sound and proper business administration, the Bank shall fundamentally review, enhance and strengthen its legal compliance and administrative control in terms of the following:
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a)Clarifying where management responsibility lies, from the initial occurrence of this problem to the present
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b)Clarifying management’s approaches to tackling this problem and addressing legal/regulatory compliance
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c)Formulating specific measures effective in preventing a recurrence of this problem and establishing bank-wide legal/regulatory compliance (including fostering and ensuring awareness among executives and employees of the importance of legal/regulatory compliance)
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d)Enhancing/strengthening internal control functions
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(2)The Bank shall submit a business improvement plan covering the items in (1) above no later than Monday, October 28, 2013, to the FSA and then immediately put this plan into action.
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(3)Between the start of the improvement plan in (2) above and its completion of this same plan, the Bank shall submit a progress/status report at the end of November 2013 and the end of December 2013, and shall submit a progress/status report for every three-month period thereafter by the 15th day of the following month.
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FTSE Mondo Visione Exchanges Index:
Japan's Financial Services Agency: Administrative Action On Mizuho Bank Co., Ltd.
Date 27/09/2013