Japan

New Documents

The Japan Financial Intelligence Center published a public statement by the Group of 7 financial Ministers and Central Bank Governors’, concerning financial crime risks in the digital sphere.  

The Japan Financial Services Agency and the European Commission issued a statement following the second meeting of the EU-Japan Joint Financial Regulatory Forum, highlighting the importance of cooperation on legislative proposals related to  virtual assets and other technological innovations.

News

Enforcement Actions

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.

Japan’s Financial Supervisory Agency stated in an administrative order against the bank that it processed investment trust sales with errors that caused losses to customers, and then responded unfairly and without explaining possible corrections.


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

Technical Effectiveness
Compliant : 4 High :
Largely Compliant : 20 Substantial :
Partially Compliant : 14 Moderate :
Non-Compliant : 10 Low :
Not-Applicable : 1

BASEL i

Rank : 69/141
Score : 5.16/10

TRANSPARENCY INTERNATIONAL i

Rank : 20/180
Score : 73/100

Tax Justice Network i

Rank : 16/133
Score : 66/100