Japan's financial industry watchdog ordered Royal Bank of Scotland's Tokyo unit to bolster compliance on Friday, becoming the latest global regulator to punish the bank in the wake of a interest rate rigging scandal. In a statement RBS Securities Japan Ltd apologized to its customers and said that its head Ryusuke Otani would leave the firm and be replaced by Shoji Toby Taniguchi. The Financial Services Agency ordered RBS Securities to shore up its compliance after finding employees had sought to manipulate interest rates to profit on derivative trades, calling its conduct "seriously unjust and malicious". The Japanese watchdog's directive is the latest punishment meted out by a regulator following the eruption of an industry-wide scandal over the rigging of The London Interbank Offered Rate (Libor) and other benchmark rates last year.