Japanese agency scolds PNB

Japan’s Financial Services Agency (FSA) has issued a business improvement order to the Tokyo branch of Philippine National Bank (PNB) for engaging in unauthorized operations. It was found that the bank had its employees stationed at travel agencies frequented by Filipinos to handle overseas remittance and foreign currency exchange services without FSA authorization.

PNB president and chief executive officer Omar Byron T. Mier said that the bank was prepared to address all issues raised by the FSA.

"We have already put in motion our response to some of the key points raised in the examinations," Mier added.

The FSA said that the PNB Tokyo branch did not get permission to give out leaflets and conduct person-to-person sales campaigning in travel agencies, churches and other religious facilities frequented by Filipinos.

The branch was also warned of its selling internal raffle tickets to employees and interested clients. Only some Japanese banks have been given permission to conduct raffles sales activities.

In a statement, the PNB said that it was instructed by the FSA to outline a business improvement plan, which among others, must clearly outline the functions and responsibilities of its personnel in Japan.

It seems that the operational methods of the branch was not adhering entirely to the strict banking procedures. Particular focus was raised on remittance operations which were being questioned by the FSA.

Meanwhile, the MasterCard International (MCI), owned by about 1,400 financial institutions, plans to undertake an initial public offering (IPO) to pave the way for outside investors to own as much as 49 percent of its equity and gain 83 percent of voting power.

David Skillen, chief executive officer of Citibank’s credit card operations in Asia, told The Asian Banker that existing shareholders "may lose a little ‘directional control’ from the current model, but MCI now has a sustainable model going forward."