Japanese bank executives to face punishment for loans to known criminals

The bank had around 230 transactions with criminal groups, totaling around ¥200 million

It’s not only American banks that have seen legal trouble for loans the bank shouldn’t have given. More than 30 executives from the Japanese Mizuho Bank could face punishment for accepting loans for known members of criminal organizations.

On Sept. 27, the Financial Services Agency (FSA) issued an operations-improvement order to Mizuho, claiming that the bank did not take any necessary actions to cancel the existing loans. According to The Wall Street Journal, the bank had around 230 transactions with criminal groups such as the yakuza, totaling around ¥200 million ($2 million).

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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