The Financial Services Agency slapped Cititrust and Banking Corp., a Japanese trust banking unit of Citigroup Inc., with an administrative order Friday regarding its illegal business operations and for evading an agency inspection last year.
The order tells Cititrust and Banking not to engage in any new trust business after May 2, FSA officials said.
But an FSA official admitted the order is essentially a formality, since the trust bank is already in the process of dissolution and has not engaged in any new trust business recently.
Citigroup, which was also punished by the financial regulator over illegal business practices surrounding its private banking business, announced Oct. 25 that it would shut down Cititrust and Banking within 12 months.
The FSA said it will rescind the administrative order when the trust bank is deemed ready for dissolution and will accept an application from the bank for dissolution approval, the officials said.
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