Japan’s Ongoing Battle Against Money Laundering and Financial Crimes

A Look into the Efforts of the Asian Financial Powerhouse to Combat Illicit Activities

As one of the largest and most influential economies in the world, Japan has been a target for money launderers and financial criminals. Despite significant progress, the country continues to face challenges in its efforts to combat these illicit activities.

Japan’s International Commitments to Counter Financial Crimes

Member of the Asia/Pacific Group on Money Laundering (APG) since 1991
Member of the Financial Action Task Force (FATF) since 1990

Japan’s AML and CTF Regulations

2017: Revised Financial Instruments and Exchange Act
Customer due diligence measures
Identification and verification of clients
Reporting of suspicious transactions

Challenges Persist

FATF: Japan faces numerous compliance issues
Risk assessment
Customer due diligence
Interpretation and enforcement of AML laws

Loopholes Exploited by Organized Crime Groups

Yakuza
Real estate
Casinos
Financial services

Recent Developments in Japan’s Fight Against Financial Crimes

2022: FSA conducted inspections of 100 financial institutions
Tough action against non-compliant institutions
Enhancing international cooperation and information sharing

Conclusion

Japan’s success in combating money laundering and financial crimes is crucial
Ongoing efforts by the Japanese government, FSA, and JFSA represent a positive step towards strengthening the country’s financial regulatory framework