Mitsubishi UFJ Financial Group, Inc. (MUFG)
MUFG Bank, Ltd. (MUFG Bank)
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS)

Regarding the Securities and Exchange SurveillanceCommission’s Recommendation for Administrative Action
Tokyo June 14, 2024 --- Japan’s Securities and Exchange Surveillance Commission(“SESC”) today announced that, based on the results of its investigation, it has
recommended that the Prime Minister and the Commissioner of the Financial Services
Agency (“FSA”) take administrative action against MUFG Bank and MUMSS.
We sincerely apologize for the inconvenience and concern this has caused ourcustomers and other stakeholders.
The SESC’s recommendation was made in response to requests for administrative
action in relation to problems with MUFG Bank and MUMSS’ banking-securities
collaborative business, management of information (including pertaining to corporate
relationships), and monitoring systems in relation to these matters.
MUFG, MUFG Bank, and MUMSS (collectively, the “MUFG Group Companies”) takethis recommendation very seriously.
In line with amendments to the “Comprehensive Guidelines for Supervision of Financial
Instruments Business Operators, etc.,” in June 2022, the MUFG Group Companies
recognized issues related to compliance systems, internal control systems, etc.,
pertaining to our banking-securities collaborative business, and have made variousadjustments. We accept that the current recommendation calls for the appropriateenhancement and acceleration of internal control and checking functions of the MUFG
Group Companies in a manner that suits the actual conditions of the banking-securities
collaborative business, etc.
In light of this recommendation, the MUFG Group Companies will renew their efforts tostrengthen control systems and make every effort to implement measures to prevent
recurrence that include more effective and specific measures to further enhance andstrengthen internal control systems.

11． Factual background to the recommendation relating to MUFG Bank
(1) Inappropriate sharing, etc., of customer information between MUFG Bank andMUMSS.
(2) Securities-related business at a registered financial institution.
2． Factual background to the recommendation relating to MUMSS(1) Inappropriate sharing, etc., of customer information between MUFG Bank andMUMSS.
(2) A situation where financial product transaction contracts are inappropriately
concluded after overlooking the prohibition of—or encouraging—securities-related
business at registered financial institutions.
3． MUFG companies’ recognition
MUFG has been promoting Group collaboration, including banking-securities
collaboration, to meet diverse customer needs and realize customer-centric sales
activities that leverage the Group’s collective strengths.
In this context, particularly with regard to collaboration between MUFG Bank andMUMSS, it is necessary to comply with firewall regulations when sharing information,
which is necessary for collaboration to occur, and the proper handling and managementof corporate-related information is essential due to the nature of transactions that MUFG
Bank and MUMSS collaborate on. As specified in the SESC’s recommendation, it
discovered inappropriate cases at MUFG Bank and MUMSS.
In light of this recommendation, we recognize that, in addition to insufficient awarenessof compliance with the Banking Act and the Financial Instruments and Exchange Act
based on a correct understanding of these laws, systems for checking and detection at
our monitoring departments were insufficient.
MUFG Group Companies have recognized the challenges of the legal compliance andinternal control frameworks related to banking-securities collaborative business since
the revision of the FSA’s supervisory guidelines and policies in June 2022, and have
improved their frameworks by enhancing training on customer information management,
revising procedures, etc., based on the Need to Know principles and various laws andregulations, and by using AI and other systems to strengthen constant monitoring andcontrol.
We take the issuance of this recommendation seriously and will work to prevent
recurrence by strengthening our management system, spreading awareness of2

compliance with laws and regulations in banking-securities collaborative business,thoroughly managing information on customers, etc., and strengthening our monitoring
system to further improve our internal control and checking functions in a manner suited
to actual conditions in banking-securities collaborative business.
4． Formulation of measures for preventing recurrence
In response to the recommendation, the MUFG Group Companies will further
strengthen their systems and formulate more effective measures to prevent recurrence
at MUFG Bank, MUMSS, and MUFG to ensure compliance with laws and regulations
in banking-securities collaborative business.
Specifically, we are considering the formulation and thorough implementation ofprocedures and rules in line with case studies and actual conditions, more practicaltraining, and more in-depth enhancement of detection and checking functions inbranches and relevant head office divisions. Specifics will be announced once they
have been decided.
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About MUFG
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financialgroups. Headquartered in Tokyo and with over 360 years of history, MUFG has a globalnetwork with approximately 2,000 locations in more than 40 countries. The Group has
about 120,000 employees and offers services including commercial banking, trustbanking, securities, credit cards, consumer finance, asset management, and leasing.
The Group aims to “be the world’s most trusted financial group” through close
collaboration among our operating companies and flexibly respond to all of the financial
needs of our customers, serving society, and fostering shared and sustainable growth
for a better world.
MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.
For more information, visit https://www.mufg.jp/english.

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