Japan Bank Executives Apologize, Take Pay Cuts After Employees Steal $9M From Safe Deposits

The employee, Yukari Iwamura, who stole around 1.4 billion yen ($9 million) valuables, was already arrested and will face criminal charges.

By Thea Felicity

Jan 16 2025, 09:10 AM EST

Japan's MUFJ Bank As It Reports Q3 Results — TOKYO, JAPAN - FEBRUARY 05: Pedestrians walk past a MUFG Bank branch on February 05, 2024 in Tokyo, Japan. Over the last six months, the net income of major and regional banks in Japan has increased, while it has decreased for shinkin banks. The pre-provision net revenue (PPNR) excluding trading income, which indicates core profitability, has increased for all types of banks, contributing to the rise in net interest income, reports in Nikkei Asia said. MUFJ Bank reports third-quarter results on Monday. Tomohiro Ohsumi/Getty Images

Executives at one of Japan's largest financial institutions, MUFG Bank, publicly apologized and accepted pay cuts after an employee allegedly stole around 1.4 billion yen ($9 million) in gold, cash, and other valuables from safe deposit boxes for over four years at two different bank branches.

The thefts, which were discovered last October, include gold bars on two separate occasions from customers' safe deposit boxes. The employee, Yukari Iwamura, was arrested mid-January 2025 and fired by the bank. The bank's investigation revealed even larger losses, prompting the authorities to add further charges.

Japan Bank Executives Respond to Employee Theft Scandal

As a response to the scandal, AP News reported that the top management at the bank has accepted a 30% cut in their salaries for the next three months. They include Chairman Naoki Hori, Chief Executive Junichi Hanzawa, and Managing Executive Officer Tadashi Yamamoto. Two other executives will be receiving a 20% reduction in pay for the same period. This gesture of accountability is for the bank to show that they are taking responsibility for the breach of trust and assuring their customers that they will take the situation seriously.

The bank has also assured to strengthen the security system for such incidents in the future. MUFG Bank aims to keep better track of spare keys to the safe deposit box and tighten checks within the firm to ensure the security of customers' valuables. The bank will compensate the valuables stolen from its customers little by little.

The bank regretted the troubles and worries this issue has brought on even unaffected customers.

As for Iwamura, she will continue to face further investigation, while already arrested, as the bank looks for additional losses. Given the seriousness of the theft, Iwamura is likely to be charged with a crime, which would result in a long prison sentence if convicted.