The new chief executive of Citibank Japan apologized at a Diet committee Tuesday and promised that misled customers would be compensated at its private-banking unit, where regulators have found violations.

In a rare testimony by a foreigner in Japanese parliament, Douglas Peterson said 14 officers have been fired, including eight managing directors, for their dubious actions, including inappropriate dealings with customers and lax implementation of internal and Japanese regulations.

In September, the Financial Services Agency yanked Citigroup Inc.'s private-banking license and charged the company with legal violations.

The FSA accused the private bank, which manages the investments of wealthy individuals, of failing to implement safeguards against money laundering, misleading customers about financial risks, and other violations.

Citigroup has acknowledged that management at its private bank had "failed to establish a culture that ensured ongoing compliance with laws and regulations."

The trust banking unit, which handled product development for Citibank's private banking operations, is being shut down within a year.

Citigroup now has more than 100 people reviewing records of financial transactions and will report any violations, Peterson said.

"We will work with those customers to ensure that those customers are compensated and treaty fairly," he told the Fiscal, Financial and Monetary Policy Committee.