Japan bank executives take pay cuts after employee is accused of stealing from safe deposit boxes

TOKYO — Executives at a leading Japanese bank apologized and took pay cuts on Thursday after police arrested an employee who allegedly stole about 1.4 billion yen ($9 million) worth of valuables from customers' safe deposit boxes.

The thefts at two branches of MUFG Bank spanned four years and were uncovered last October.

The employee, who was dismissed, is believed to have stolen gold, cash and other valuables worth about 1.4 billion yen from about 60 safe deposit boxes, according to the bank.

The bank, one of Japan's three megabanks, was formed in 2006 by the merger of UFJ Bank and Bank of Tokyo-Mitsubishi.

The employee, identified by Tokyo police as Yukari Iwamura, who also used the name Yamazaki, was arrested Tuesday on suspicion of stealing 20 gold bars on two separate occasions from deposit boxes belonging to two customers.

Police said other charges may be added later since the losses reported by the bank are bigger. The case is still under investigation.

The executives taking pay cuts include Chairman Naoki Hori, Chief Executive Junichi Hanzawa and Managing Executive Officer Tadashi Yamamoto, who each took a 30% reduction over three months. Two other executives will receive a 20% cut over three months.

The bank promised to better monitor the spare keys of safe deposit boxes and strengthen checks over bank operations. It said customers were gradually being compensated for their losses.

''We sincerely apologize for the inconvenience and concern this is causing customers and stakeholders,'' it said in a statement.

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