Nomura Securities Co. and Dai-Ichi Kangyo Bank each submitted plans Sept. 19 to the Finance Ministry for steps to strengthen their internal control systems.
The plans, which were handed to ministry officials by presidents of the two financial institutions, included measures to increase transparency in decision-making and improve the system of checking business transactions. The firms are suspected of illegally offering financial paybacks to "sokaiya" racketeer Ryuichi Koike, and were handed administrative penalties by the ministry July 30.
The Finance Ministry ordered DKB and Nomura to suspend part of their operations from Aug. 6 to Dec. 31 at the latest over their illegal dealings with the racketeer. The administrative penalties are the most severe ever handed down. The submission of an implementation plan to correct management and break ties with sokaiya was included as part of the penalty, and the two firms are required to report progress to the ministry every six months.