FSA Revamps Guidelines for Anti-Money Laundering and Combating Terrorism to Boost Financial Institution Efforts

Japanese Financial Services Agency (FSA) Updates FAQs for Strengthened AML/CFT Frameworks

TOKYO, APRIL 2, 2024 - The Japanese Financial Services Agency (FSA) has revised its “Frequently Asked Questions Regarding ‘Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism’” to enhance the effectiveness of anti-money laundering and combating the financing of terrorism (AML/CFT) measures taken by financial institutions.

Revised FAQs Aim to Strengthen AML/CFT Frameworks

The revised FAQs, first issued in March 2021 and last updated in August 2022, provide clarification on various aspects of AML/CFT compliance, including:

• Customer Due Diligence: Requirements for identifying and verifying customers
• Reporting Suspicious Transactions: Guidelines for reporting suspicious transactions to the authorities
• Monitoring for Potential Risks: Measures to detect and prevent money laundering and terrorist financing

Enhanced Understanding through Provisional Translation

While the original FAQs were prepared in Japanese, a provisional translation is available as reference material to aid understanding of the revised guidelines.

Expected Benefits for Financial Institutions

The revised guidelines are expected to help financial institutions in Japan better implement AML/CFT measures, contributing to global efforts to combat financial crime. By strengthening their frameworks, financial institutions can reduce the risk of being used for illegal activities and maintain public trust.

Contact Information for Further Inquiries

For further information or inquiries regarding the revised FAQs, please contact the FSA’s Strategy Development and Management Bureau AML/CFT Policy Office at:

+81-(0)3-3506-6000