Japan's financial regulator has mandated Aeon Bank Ltd. to enhance its anti-money laundering (AML) systems due to its failure to detect and report suspicious customer activities. The Financial Services Agency highlighted that the bank's management did not rectify the issues despite repeated warnings. It was found that Aeon Bank did not properly screen at least 14,639 transactions in 2023 and 2024.
The bank, a part of retail giant Aeon Co., operates over 180 branches nationwide. It must submit an improvement plan by January 31 of the coming year and has committed to strengthening its AML measures. This scrutiny follows a 2021 evaluation by a global regulatory body, which urged Japan to intensify its efforts against money laundering and terrorist financing, despite the country's understanding of associated risks.
