Financial Crime World

Here is the rewritten article in Markdown format:

Financial Intelligence Unit Plays Key Role in Japan’s Fight Against Money Laundering and Terrorism Financing

The Japanese Financial Intelligence Unit (JAFIC) was established in 2007 to play a central role in enforcing laws aimed at preventing money laundering and terrorism financing. As an institution within the Organized Crime Department of the National Police Agency, JAFIC is responsible for collecting, analyzing, and disseminating information on suspicious transactions to investigative authorities and foreign financial intelligence units.

History of FIUs

The concept of FIUs (Financial Intelligence Units) was first introduced in 1995 by Egmont Group, a forum for exchanging information between FIUs. An FIU is defined as a central agency responsible for receiving, analyzing, and disseminating disclosures of financial information related to suspected proceeds of crime and potential financing of terrorism.

Establishment of JAFIC

In Japan, the reporting of suspicious transactions has been mandatory since 1992, but it was not until the establishment of JAFIC that the system for centralizing and disseminating this information was put in place. The Act on Prevention of Transfer of Criminal Proceeds, which came into effect in 2007, expanded the reach of reporting entities from financial institutions to non-financial institutions such as real estate agents and dealers in precious metals and stones.

Responsibilities

JAFIC is responsible for:

  • Collecting, arranging, analyzing, and disseminating information on suspicious transactions filed by specified business operators.
  • Disseminating this information to foreign FIUs.
  • Providing complementary supervisory measures against specified business operators.
  • Planning and examining the legal system related to anti-money laundering and combating the financing of terrorism (AML/CFT).
  • Participating in international discussions on AML standards.

Supervision

JAFIC is under the supervision of the National Public Safety Commission, which controls the National Police Agency.

Composition

JAFIC is currently composed of about 90 people under the Director for Prevention of Money Laundering.