Drug Crimes as Predicate Offenses: Concealing Proceeds and Asset Forfeiture

In Japan, drug crimes are considered predicate offenses for concealing proceeds and asset forfeiture. The country’s laws aim to prevent the illegal use of drugs and other criminal activities by seizing and freezing assets linked to these crimes.

Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT)

The Act on Prevention of Transfer of Criminal Proceeds (APTCP) is a key legislation in Japan’s fight against money laundering and terrorist financing. The law requires financial institutions (FIs), designated non-financial businesses and professions (DNFBPs), and non-profit organizations (NPOs) to implement strict AML/CFT measures.

Beneficial Ownership Transparency

To prevent the misuse of legal persons, Japan has implemented measures to improve beneficial ownership transparency. FIs, DNFBPs, and NPOs are required to verify information about beneficial owners at the time of specified transactions. Notaries also verify BO information during the incorporation process.

Financial Intelligence Unit (FIU)

Japan’s FIU, the Japan Financial Intelligence Center (JAFIC), plays a crucial role in collecting, analyzing, and disseminating information on suspicious transactions to law enforcement agencies. JAFIC has signed agreements with over 100 foreign countries for information exchange on AML/CFT measures.

Enforcement and Asset Forfeiture

The Japanese authorities take a strict approach to investigating and prosecuting money laundering and terrorist financing crimes. The government’s strategy aims to ensure the thorough deprivation of criminal proceeds, including drug crime proceeds, and prevent criminal organizations from maintaining and expanding their activities.

• Combining robust AML/CFT measures
• Beneficial ownership transparency
• FIU operations
• Enforcement efforts

By combining these measures, Japan aims to disrupt and dismantle criminal organizations involved in drug crimes and terrorist financing activities.