On Monday, Japan's biggest bank, formally known as Mitsubishi UFJ Financial Group, Inc, apologised for the alleged theft by an employee of more than 1 billion yen, which translates into USD 6.6 million. The alleged theft is reported to have been done from customers' safe deposit boxes. The bank said that investigations were being undertaken and added that verified thefts from about 20 of the 60 clients, which are expected to have been affected, amounted to 300 million yen (nearly USD 2 million). It added that compensation is being worked out.
Earlier, from April 2020 until the end of October this year, the thefts occurred at two Tokyo branches of the bank, when the problem came up to the fore.
What did the bank CEO say?
Junichi Hanzawa, MUFG's president and CEO, in a conversation with reporters, suspected that the female employee, responsible for managing the safe deposit boxes and their keys, might have taken advantage of that position to steal cash and other valuables.
“The case has undermined the customers' trust and confidence and shaken the very foundation of our banking business,” Hanzawa said. He also apologised for causing concern and trouble to MUFG clients.
MUFG added in the statement that the employee had admitted to taking the money and using it for investments and personal purposes.
Employee cooperating with the bank's internal probe, not arrested yet
Moreover, the employee was fired and she was cooperating with the bank's internal probe and a police investigation but has not yet been arrested.
Upon the discovery of the theft incident, dozens more people came forward claiming suspected losses, which the bank is currently verifying.
The MUFG case is the second recent one involving criminal activity at a major Japanese financial institution. In November, Nomura Holdings acknowledged that a former employee had been arrested on suspicion of robbery, attempted murder and arson targeting a client in Hiroshima.
Asked about the MUFG thefts, the chief government spokesman on Monday said that banking operations require high levels of trust and a sense of public service.
The case was “extremely regrettable,” said Chief Cabinet Secretary Yoshimasa Hayashi.
(With inputs from agency)
