Japan

New Documents

Japan Adopts Additional Restrictive Measures on Russian Individuals, Entities

The Ministry of Foreign Affairs of Japan announced new restrictive measures against Russia for its ongoing war against Ukraine.

May 30, 2023

Japan FSA Calls for Global Coordination to Regulate, Supervise Crypto-Assets

In an article published in Eurofi Magazine, a senior official from Japan’s Financial Services Agency called on financial regulators to consider important policy perspectives on the risks posed by rapidly evolving crypto-asset markets.

May 4, 2023

Japan FSA to Host Cybersecurity Seminar

March 30, 2023

Japan FSA Hosts Fintech Summit

March 30, 2023

Japan FIU Publishes 2022 Annual Report (in Japanese)

March 15, 2023

News

Midweek Roundup: US Prosecutors Assemble Case Against SBF, Russia Seeks Help in Avoiding Blacklist, and More

Scotiabank exits AML enforcement action, Japan eyes stronger AML rules for cryptocurrency, and more, in the midweek roundup.

May 24, 2023

Midweek Roundup: Russian National Steps Down from Moneyval, US Domestic Terrorist Finances Moving Undetected, and More

Wirecard chief executive denies culpability, Credit Suisse breached sanctions against Russia, and more, in the midweek roundup.

March 22, 2023

Weekly Roundup: Putin’s Swiss Bankers Charged, US Treasury Using Powerful Sanctions Measure as Bargaining Chip, and More

March 3, 2023

Midweek Roundup: FTX Executive Admits Fraud and Money Laundering, Swiss Banks Investigated for Role in Lebanese Corruption, and More

March 1, 2023

Weekly Roundup: US Blacklists Wagner, Binance Loses US Banking Partner, and More

January 27, 2023

Enforcement Actions

Japan FSA Issues Administrative Action Against Revolut Technologies Japan, Inc. for AML/CTF Failures

Japan’s Financial Services Agency announced an administrative action brought by the Kanto Local Finance Bureau against the Tokyo-based payment services company for regulatory shortcomings.

September 9, 2022

Japan FSA Issues Enforcement Proceedings Against Mizuho Bank, Ltd., Mizuho Financial Group, Inc.

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.

December 16, 2021

Japanese Regulator Issues Administrative Action Against Mizuho Financial Group

December 26, 2013

Bank of Tokyo-Mitsubishi Ordered to Establish Customer-Oriented Compliance System

June 11, 2007

FSA: Bank of Tokyo-Mitsubishi UFJ Must Develop Overseas Business Compliance System

June 11, 2007

Key Documents

Japan Revises Act Preventing Use of Criminal Proceeds

February 27, 2013

Japan Publishes Amended Rules for Implementing Proceeds of Crime Act

March 26, 2012

Japan Orders Enforcement of Prevention of Transfer of Criminal Proceeds Act

February 27, 2013

Japan Publishes Ordinance to Prevent Money Laundering, Other Illegal Use of Funds

February 27, 2013

Japan Releases Anti-Terrorist Financing Act

July 1, 2002

Japan Prescribes Customer Identification, Customer Verification Obligations

December 10, 2004

Japan Criminalizes Organized Crime, Handling of Proceeds of Crimes

July 15, 2009

Japan Defines Money Laundering, Drug Trafficking Crimes

October 5, 1991

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 : 25 Substantial : 3
Partially Compliant : 9 Moderate : 8
Non-Compliant : 1 Low : 0
Not-Applicable : 1

Japan's technical compliance was re-rated in a Sept. 13, 2022, follow-up report.

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