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Citibank, the banking services unit of the world''s largest financial services group, Citigroup, had been operating in Japan since 1902, and was considered the country''s most successful private bank. But on 17 September 2004, it was ordered by The Financial Services Agency (FSA), Japan''s financial services market monitoring authority, to shut down its private banking operations in the country, citing violation of the country''s banking laws. The bank was also banned from participating in government bond auctions. While the incident highlighted the dubious business practices followed by Citibank, it also initiated a debate on whether the severe penalty also meant trouble for other foreign banks in Japan. The case helps in understanding the growth strategies employed by Citibank in Japan to become the country''s leading private bank, its serious violations of banking laws, as found by the FSA, the bank''s corporate culture, and the changing banking regulations and disclosure practices in Japan. The case offers scope for discussion on whether the severe punishment of Citibank was justified given that the Japanese banking system itself had several drawbacks, whether the punishment meant a possible closure of Citibank in Japan, and the need for a change in its corporate culture at the global level.