07:29 AM EDT, 07/19/2024 (MT Newswires) -- Mitsubishi UFJ Financial Group ( MUFG ) said Friday it will temporarily reduce the salaries of Chief Executive Hironori Kamezawa and five other top officials by 30% as punishment for allegedly allowing a breach of the firewall between its banking and securities divisions.

Japanese regulators last month ordered Mitsubishi to draw up plans to prevent future breaches, which can lead to market manipulation and insider trading. The company acknowledged in a 10-page statement that there was "insufficient penetration of correct understanding and consciousness for complying with laws, regulations" in collaborative efforts between the financial group's different arms in 2022.

The salary cuts will last two to five months, the company said. The company also asked three former directors deemed partly responsible for the breaches to return 10% to 30% of their pay over three months.

The company also vowed to improve training and tighten rules to prevent future breaches.

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