Aomori Bank and Michinoku Bank on Friday disclosed a list of punitive measures for senior staff members who failed to report money remittances that were found to be linked to an embezzlement case.
On Thursday, the Financial Services Agency handed the two regional financial institutions, both of which are based in Aomori Prefecture, with business improvement orders that mandated them to take corrective measures over the case.
The FSA said that by failing to notify financial regulators of the remittances the banks violated a law covering money-laundering and illegal transactions.
On Friday, Aomori Bank said it has doled out pay cuts of between 10 percent and 20 percent to 10 executives and reprimanded eight employees in charge of remittances. Bank officials did not specify how long the pay cuts will last.