Newsfrom Japan
Oct 31, 2025 19:14 (JST)
Tokyo, Oct. 31 (Jiji Press)–Japan’s Financial Services Agency on Friday issued a business improvement order to Iwaki Shinkumi, including partial suspension of its operations, after the regional credit cooperative was found to have provided funds to antisocial forces.
The cooperative, based in Iwaki, Fukushima Prefecture, northeastern Japan, will be forced to suspend lending to new clients for one month from Nov. 17.
According to the FSA, Iwaki Shinkumi provided cash to antisocial forces and extended loans to firms owned by such racketeers.
A special investigation committee set up by Iwaki Shinkumi said Friday it has newly found that most of the roughly 850 million yen to 1 billion yen spent for unknown purposes, discovered during its probe into the cooperative’s fraudulent lending, was provided to antisocial forces.
Iwaki Shinkumi also extended loans to struggling large borrowers via accounts opened without the consent of depositors, in a practice known as bypass lending.
[Copyright The Jiji Press, Ltd.]
Jiji Press
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