(TFP Administrator: I'm just posting, on his or her behalf, an anonymous e-mail we have recently received. Anyone who has additional information, or a comment to make, in relation to the alleged irregularities is solicited to post it on our Whistle-blowers' BB.)
Recently, Citibank Japan CEO Douglas Peterson told a parliamentary finance committee that lax corporate governance and an "aggressive sales culture" were behind abuses at the private banking unit, ordered to be closed by regulators in September. I am not 100% sure, but I would like to report another possible questionable activity.
DP recently made this apology, but there is reason to wonder if it is sincere. Citigroup still has major internal audit and compliance problems, including:
- Sourcing of unlicensed vendors
- Insufficient due diligence regarding vendor contracts
- Employment of foreign staff who sometimes lack proper work visas
These practices are grave violations of the Japanese labor law because:
- Citibank recently dismissed many Japanese employees
- Citibank engaged unlicensed outsourcing firms
- Japanese employees were replaced with illegal labor
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