Japanese Firms Must Report Fraudulent Activity: Understanding Anti-Social Forces Requirements
Tokyo, Japan - New Regulations to Combat Organized Crime and Fraudulent Activities
In an effort to combat organized crime and fraudulent activities, Japan has introduced stringent regulations requiring businesses to report any suspicious transactions linked to anti-social forces (ASF). The term “anti-social forces” refers to Japanese criminal syndicates, known as the yakuza, as well as other individuals or groups that negatively impact society.
Compliance Requirements
To comply with these regulations, companies must ensure they do not have any business relationships with ASF members or entities. This involves:
- Conducting thorough background checks on clients and partners
- Checking them against anti-social forces databases
- Performing adverse media screening
Consequences of Non-Compliance
Failure to comply with these requirements can result in severe penalties, including:
- Fines
- Delisting from financial markets
- In extreme cases, a company found to have knowingly engaged with ASF may be designated as an anti-social force itself, effectively cutting off all financial ties with customers and partners.
Implementing Effective Anti-Social Forces Monitoring Procedures
To avoid such consequences, businesses must implement robust Anti-Social Forces (ASF) monitoring procedures that include:
- AML databases
- Adverse media screening
This can be achieved through partnering with a reputable provider that offers both services. Sumsub’s automated AML & adverse media screening solution is a reliable option for businesses seeking to onboard Japanese customers efficiently.
Importance of Compliance
The article concludes by emphasizing the importance of compliance with anti-social forces regulations in Japan. It highlights the need for businesses to have a comprehensive understanding of these requirements and to implement effective monitoring procedures to ensure they are not inadvertently supporting illegal activities.