Japan

New Documents

The U.K. and Japan issued a joint statement following the inaugural Financial Regulatory Forum between the two jurisdictions to strengthen cooperation, reduce the risk of market fragmentation, promote fair and competitive markets, and explore opportunities to enhance financial services.

Japan’s Financial Services Agency published a preliminary English translation of its Comprehensive Guidelines for Supervision of Major Banks as part of efforts to strengthen cooperation with overseas authorities on supervisory measures.

News

Enforcement Actions

Japan’s Financial Services Agency took administrative actions against Mizuho Bank, Ltd. and Mizuho Financial Group, Inc., ordering the institutions to strengthen governance procedures and certain anti-money laundering processes.

The Japanese Financial Services Authority announced the action against the Tokyo-based bank holding company for its failure to ensure sound and appropriate business operations.


Important Facts

  • The U.S. State Department labels Japan as a jurisdiction of primary concern. Japan is a regional financial center, but not an offshore financial center. The country continues to face substantial risk of money laundering by organized crime, including Japan’s organized crime groups, Mexican drug trafficking organizations and other domestic and international criminal elements. Major sources of laundered funds include: drug trafficking, fraud, illegal money lending, remittance fraud, the black market economy, prostitution and illicit gambling. Bulk cash smuggling is also of concern. In the past several years, there has been an increase in financial crimes by citizens of West African countries, such as Nigeria and Ghana, who reside in Japan. There is not a significant black market for smuggled goods and the use of alternative remittance systems is believed to be limited.
  • KYC Covered Entities: Banks; credit, agricultural, and fishery cooperatives; insurance companies; securities firms; real estate agents and professionals; precious metals and stones dealers; antique dealers; postal service providers; lawyers; judicial scriveners; certified administrative procedures specialists; accountants; certified public tax accountants; and trust companies
  • STR Covered Entities: Banks; credit, agricultural, and fishery cooperatives; insurance companies; securities firms; trust companies; real estate agents and professionals; precious metals and stones dealers
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: N/A; Convictions: N/A
-Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 4 High : 0
Largely Compliant : 24 Substantial : 3
Partially Compliant : 10 Moderate : 8
Non-Compliant : 1 Low : 0
Not-Applicable : 1

BASEL i

Rank : 47/110
Score : 4.99/10

TRANSPARENCY INTERNATIONAL i

Rank : 19/179
Score : 74/100

Tax Justice Network i

Rank : 16/133
Score : 66/100