Agence France-Presse/Getty Images  Ridding Japan’s banking
system of loans to organized crime presents major challenges
both in terms of identifying suspicious customers and the risk
of legal action from borrowers who have their bank accounts
canceled or even malicious threats from gangsters.  The recent
shady loans scandal at Mizuho came amid government moves to
tighten “know your client” rules and stiffen penalties on banks
that make such loans. But it’s not all a case of stepping up
punishment. Amid the crackdown, financial institutions looking
to get questionable clients off their books can also get
assistance: the government is offering to buy back shady loans.
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