Japan’s Anti-Money Laundering (AML) Measures: A Historical Account
Early Efforts (1992-2000)
Enforcement of Key Legislation
- Anti-Drug Special Provisions Law (1992): Japan enforced this law as part of international initiatives to combat money laundering. It criminalized money laundering activities connected with drug crimes and established a suspicious transaction reporting system for financial institutions.
- Act on Punishment of Organized Crimes (2000): This law extended the scope of predicate offenses for money laundering beyond just drug crimes and designated the Financial Supervisory Agency as Japan’s Financial Intelligence Unit (FIU).
Post-9/11 Reforms (2001-2007)
New Laws and Regulations
- Act on Punishment of Financing of Offences of Public Intimidation: Enacted in response to the 9/11 terrorist attacks, this law aimed to combat terrorist financing.
- Customer Identification Act: Also enacted after the 9/11 attacks, this law implemented customer identification requirements for financial institutions.
Comprehensive Regulations (2007-Present)
Expanded AML/CFT Regulations
- Act on Prevention of Transfer of Criminal Proceeds (2007): This law implemented revised FATF recommendations and extended the scope of AML/CFT regulations beyond financial institutions.
- Amendment of the Act on Prevention of Transfer of Criminal Proceeds (2013): Amendments were made to address issues related to customer due diligence and illicit transfers of savings passbooks.
Japan’s AML/CFT regime has evolved significantly over the years, from initial efforts to combat money laundering in the 1990s to more comprehensive regulations and enforcement measures.