In December 2013, Shigeru Echigo, a Deutsche Bank employee was arrested and he is now providing information regarding his ex-supervisor, who he claims was involved in the corruption case.
According to reports by Bloomberg, Echigo admitted to bribing a pension fund executive to encourage him to buy investment products. The investigation by the Japanese Authorities revealed that the 60-year-old Yutaka Tsurisawa, manager of a pension fund from April to August 2013, was accepting benefits from Echigo. The services provided included foreign trips, golf trips and other benefits to the value of 6,500 euros were given in exchange for a 7.2 million Euro investment with Deutsche Bank. Echigo as well as Tsurisawa were taken into custody in 2013 for corruption.1
According to findings from the Japanese authorities a total 160,000 euros were spent on bribes for the pension fund managers between 2010 and 2012.2 It is claimed that this form of corruption within the brokerage unit was institutional and not isolated. After a number of issues with financial supervisors of Japanese banks the Japanese government introduced stricter controls and requirements for civil servants.3 This, would therefore apply to top managers of pension funds in Japan as they are considered civil service officials, and the provision of financial incentives and benefits in exchange for investments, should be interpreted as a bribe and duly prosecuted.
- Bloomberg: Former Deutsche Salesman admits Bribery in Tokyo, Available at.: http://www.bloomberg.com/news/2014-04-21/ex-deutsche-bank-salesman-to-enter-plea-in-wining-dining-probe.html Last checked on 19.06.2014. [↩]
- Handelsblatt: Again corruption charges against German Bank Available at.: http://www.handelsblatt.com/unternehmen/banken/japan-geschaeft-wieder-korruptionsvorwuerfe-gegen-deutsche-bank/10058780.html Last checked on 19.06.2014. [↩]
- Handelsblatt: German-Japanese Bank chief knew of bribery Available at.: http://www.handelsblatt.com/unternehmen/banken/finanzaufsicht-japanische-deutsche-bank-chefs-wussten-von-bestechung/10053634.html Last checked on 19.06.2014. [↩]