TOKYO, Jun 30 (Pulse News Wire) – Unbanked Inc. (8746.T) disclosed significant deficiencies in its internal controls related to financial reporting based on findings in its fiscal year 2026 internal control report submitted to the Kanto Finance Bureau.
The deficiencies arose from delayed recovery of receivables from gold scrap transactions conducted during the fiscal year ending March 31, 2026. On December 15, 2025, an external investigation committee found several issues, including inadequate pre-trade due diligence, lack of post-trade monitoring, and insufficient board oversight. As a result, the Tokyo Stock Exchange designated Unbanked's shares as a special attention stock on May 26, 2026, citing violations of corporate conduct norms and damage to investor trust. The exchange also demanded a breach-of-contract penalty of ¥14.4 million.
In response, Unbanked implemented measures such as enhanced shareholder communication, stricter credit management policies, and improved board deliberation processes. However, these efforts did not prevent further issues, leading to the designation and penalty. The company acknowledged the need for fundamental improvements in governance and internal controls, emphasizing the importance of adhering to established protocols moving forward. The audit opinion on the consolidated financial statements remains unqualified, indicating that while deficiencies exist, they have been appropriately reflected in the financial reports.
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