Bank of Tokyo-Mitsubishi UFJ and MUFG Securities fined £26m by PRA for not being open
Financial regulators have imposed £26m of fines on the Bank of Tokyo-Mitsubishi UFJ (BTMU) and MUFG Securities for not cooperating with investigations.
The Prudential Regulation Authority (PRA) said the two companies had failed to be “open and cooperative” with the UK financial services regulator after an enforcement action by US authorities.
BTMU and MUFG, which are both part of the same group, failed to inform the PRA about the action until a public announcement was made.
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BTMU was fined $315m in November 2014 for leaning on consultants at PwC to remove warnings on broken sanctions from a report submitted to the New York Department of Financial Services. The case had implications for the chair of MUFG, a connected business.
The PRA noted financial services firms are expected to “take the initiative” at an “early stage” when relevant information comes to light.
Sam Woods, a deputy governor of the Bank of England and chief executive of the PRA said: “We expect all firms to be open and straightforward in their dealings with the PRA. Where firms fall short of this expectation, we will enforce it.”
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A spokesperson for parent group MUFG said: “BTMU and MUFG Securities EMEA plc have cooperated fully and openly with the PRA throughout the investigation. BTMU and MUFG Securities EMEA plc express their regret for these historic breaches."
The spokesperson continued: "MUFG has taken decisive action to improve its information controls and intra-group communication on regulatory matters. MUFG is committed to conducting business with the highest levels of integrity and regulatory compliance and to continuing to improve its policies and procedures.”