Deutsche Bank faces fines over bribery charges

In Other News - December 5th, 2013
Burntbank

A local arm of Deutsche Bank will face fines from Japan’s financial regulator over allegations that some of its employees violated anti-bribery rules.

The Financial Services Agency is set to give Deutsche Securities in Tokyo a dressing down on suspicion several members of its now-defunct pensions solutions group paid for dining and travel expenses of pension fund managers in order to gain business.

Fund executives are involved in managing Japan’s national pension scheme and are legally seen as public officials. Deutsche had said in September it would “fully cooperate” with Japanese regulators.

The FSA will also demand an apology from the bank as well as a tightening of its rules, procedures and internal controls.

The probe is the latest of a broadening crackdown by the Securities and Exchange Surveillance Commission, the investigative arm of the FSA, into Japan’s pension fund sector in the past two years.

Japanese regulators have been keeping an eye on pension fund activity after a scandal in 2012 when Tokyo-based investor AIJ Investment Advisors admitted to hiding losses of $1.3 billion of its clients’ pension money.

Although providing lavish entertainment to win business has long been a part of the cultural norm in Japan and other Asian countries, Japanese regulators are tightening their belts to be at par with stricter rules in the US and Europe on corporate hospitality and bribery.

By Maesie Bertumen

Image: herrmueller/Flickr