The CEO of Mitsubishi UFJ Financial Group’s main banking arm, MUFG Bank, apologized Monday over the theft, allegedly by a managerial employee, of valuables worth over ¥1 billion ($6.5 million) from the safe deposit boxes of multiple clients over a span of four and a half years.
The theft of valuables from the bank’s safe deposit boxes has dealt a blow to public confidence in the megabank.
“We solemnly recognize this as a matter that shakes the very foundation of trust and confidence, which are the core of the banking business,” said Junichi Hanzawa, who bowed deeply at the first news conference since the crime was uncovered.
Hanzawa added that the accounts of all potentially affected clients have been thoroughly reviewed. The accused manager, who is in her 40s, has told the bank she stole from about 60 clients, Hanzawa said. The bank is working to confirm this.
The bank is additionally reaching out to customers with safe deposit box contracts at MUFG’s Nerima and Tamagawa branches in Tokyo to explain the situation and ask them to confirm the contents of their boxes, Hanzawa said.
He noted that about 70% of these customers have visited the branches and checked the contents. Dozens of customers have reported potential losses, and these are currently being investigated.
For customers with missing deposits, Hanzawa said the bank is aiming to provide compensation as quickly as possible and is initiating the relevant processes as the details of the losses are confirmed.
The manager, who worked at the Nerima and Tamagawa branches, allegedly used backup keys to access the boxes.
At these branches, two keys are needed to access them: the bank's key and the customer’s key. Backup keys are kept at branches in case customers lose their keys, and these are overseen by bank managers.
To prevent a recurrence, Hanzawa said it plans to store backup keys at its headquarters, rather than leaving them at individual branches. Keys will only be sent to branches when needed.
The accused employee was dismissed last month for gross misconduct.
The thefts first surfaced when a client told the bank there was something missing from their safe deposit box.
Hanzawa said that disciplinary action against himself and other executives would be considered as the investigation progresses.
The Financial Services Agency has ordered the bank to explain how the thefts happened and the measures being taken to prevent a recurrence.
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