Citibank in Japan faces possible sanctions

Citibank Japan President and Chief Executive Officer Darren Buckley apologized for the bank's third regulatory lapse since 2004, the Yomiuri Shimbun reported. The Financial Services Agency has yet to announce sanctions against the bank for allegedly overlooking potential money-laundering bank accounts, the Yomiuri Shimbun reported Monday. But sanctions are expected soon, the news agency said. Buckley apologized at a news conference, saying the bank's audit system failed to detect the problems, the report said. The bank had its licenses revoked in 2004 and was ordered to forgo solicitation of new clients for a month in 2009 on similar allegations. It is possible regulators could ask for the bank to suspend operations to make organizational changes that would comply with regulations, the report said. The bank is expected to file a report soon that regulators will review before assigning a penalty.