TOKYO (Reuters – Japan’s Finance Ministry is planning to pursue punitive actions against Mizuho Financial Group’s bank arm, citing a failure to comply with its foreign exchange law.

According to the Nikkei, Japan’s third-largest lender was found not to have followed the required anti-money laundering procedures under the foreign currency act when transacting overseas money remittances.

Although no evidence was found to support illegal money remittances in the checks, the Ministry of Finance (MOF), determined that corrective action should be taken as Mizuho Bank is Japan’s second largest bank and has responsibility for payment system, according the Nikkei.

Reuters reached out to a spokesperson for Mizuho and a finance minister official responsible for foreign currency law.

In August, the finance ministry announced that it had a 3-year plan of action. This was in response to an FATF report.

Two sources familiar with the matter say that the Japanese banking regulator has responded to Mizuho’s Sept. 30 issue. They will issue a reprimand Friday against the financial group due to a series system flaws.

According to one source, the CEO and head of Mizuho’s primary banking unit Tatsufumi Takai will resign in order to shoulder responsibility for the problem.