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Anti-Money Laundering Rules in Japan

Japan has implemented Anti-Money Laundering (AML) rules to prevent money laundering and terrorist financing. The main laws and regulations are outlined below.

Key Laws and Regulations

  • Act on Prevention of Transfer of Criminal Proceeds: This law requires financial institutions and other specified businesses to implement measures to prevent the transfer of criminal proceeds.
  • Financial Instruments and Exchange Act (FIEA): This law regulates financial instruments dealers, securities companies, and other financial institutions.
  • Ordinance for Enforcement of Act on Prevention of Transfer of Criminal Proceeds: This ordinance provides implementing regulations for the AML law.

Key Requirements

The following are key requirements for AML compliance in Japan:

  • Know Your Customer (KYC) Regulations: Financial institutions must verify customer identities and assess the risk of money laundering.
  • Suspicious Transaction Reporting: If a financial institution suspects a transaction is related to money laundering, it must report it to the relevant authorities.
  • Record-keeping and reporting requirements: Financial institutions must maintain records of transactions and report suspicious transactions to the authorities.

Consequences of Non-Compliance

Failure to comply with AML regulations can result in:

  • Administrative sanctions
  • Fines
  • Criminal penalties for individuals involved

If you have any specific questions or need further clarification on AML compliance in Japan, please let me know!