Japan

New Documents

The Japan Financial Intelligence Center published its annual report, highlighting regulatory developments in the fight against money laundering and terrorist financing.

The G7 finance ministers and central bank governors issued a communiqué outlining a shared commitment to deeper multilateral economic cooperation, including support for a global minimum tax of at least 15 percent and the implementation Financial Action Task Force Standards.

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 regulator issued an administrative action against the bank for its violations of local laws in foreign countries by expatriate staff and locally hired managers.


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