In November 2014 BTMU was fined $315m for pressuring its consultant to water down a supposedly objective report on BTMU’s dealings with sanctioned countries which was submitted to the US regulator.
The bank and securities company, both part of Mitsubishi UFJ Financial Group, did not inform the PRA of the DFS action until after the DFS’ public announcement.
The PRA says BTMU’s "inadequate systems and controls" for the communication of relevant information contributed to this failure and that the banks "fell significantly short" of its expectations of PRA-authorised firms to engage in open dialogue.
BTMU and MUS(EMEA) agreed to settle at an early stage and were therefore entitled to a 30% discount, without which they would have been fined £25.5m and £12.75m respectively.
Sam Woods, Deputy Governor, Prudential Regulation and CEO of the PRA, said: “We expect all firms to be open and straightforward in their dealings with the PRA. Where firms fall short of this expectation, we will enforce it.”
An MUFG spokesperson said: “BTMU and MUFG Securities EMEA plc have cooperated fully and openly with the PRA throughout the investigation. BTMU and MUFG Securities EMEA plc express their regret for these historic breaches.
"MUFG has taken decisive action to improve its information controls and intra-group communication on regulatory matters. MUFG is committed to conducting business with the highest levels of integrity and regulatory compliance and to continuing to improve its policies and procedures.”
