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Nissan faces $22m fine for misreporting Carlos Ghosn's pension

Christian Fernsby |
Nissan faces a fine of $22m related to the carmaker's under-reporting of former chairman Carlos Ghosn's pension.

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Japan's markets regulator has recommended a fine for Nissan of 2.4bn yen ($22m) to cover the four financial years from April 2014 to March 2018.

The financial regulator, the Financial Services Agency, will make the final decision on the penalty based on the recommendation by the Securities and Exchange Surveillance Commission (SESC).

Ghosn was arrested in Tokyo in November 2018 for alleged financial misconduct, including understating his salary by about 9.1 bn yen for almost a decade and temporarily shifting personal financial losses to Nissan.

Ghosn has denied wrongdoing.

Nissan said it did not intend to dispute the reasons for the fine or the amount, which would be the second-biggest in Japan for false reporting in a corporate financial statement.

Reports had said the SESC would recommend a fine of 4bn yen but that the amount would be reduced if Nissan cooperated.

The largest such fine is the 7.3bn yen punishment imposed on Toshiba in 2015.

"The company takes this recommendation extremely seriously and will consider its response after receiving the FSA’s official notice," Nissan said in a statement.

"The company expresses sincere regret for any concern caused to our valued stakeholders, and will continue its efforts to strengthen its governance and ensure that the company’s operations reflect full awareness of the importance of compliance."

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