Financial Crime World

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Offences of Public Intimidation: A Growing Concern in Japan

In a bid to combat the increasing threat of terrorism, the Japanese government has strengthened its laws to prevent the collection and provision of terrorist funds. The Terrorist Asset Freezing Act (TAFA) and the Offences of Public Intimidation Act (TF Act) are two key legislations aimed at disrupting the financial networks of terrorist organizations.

Risk-Based Approach

The National Public Safety Commission, in collaboration with the Financial Services Agency, has implemented a risk-based approach to identify and mitigate money laundering and terrorist financing risks. This approach involves conducting comprehensive assessments of transactions by specified business operators, including:

  • Financial institutions (FIs)
  • Designated non-financial businesses and professions (DNFBPs)
  • Non-profit organizations (NPOs)

Beneficial Ownership

The government has also introduced measures to increase transparency in beneficial ownership (BO) information. Specifically:

  • FIs are required to verify BO details at the time of transactions
  • Notaries must verify BO information when legal persons are incorporated

Utilization of Financial Intelligence Unit

Japan’s Financial Intelligence Unit, Japan Financial Intelligence Center (JAFIC), plays a crucial role in collecting and analyzing suspicious transaction reports, as well as disseminating analysis results to law enforcement agencies. JAFIC has established partnerships with over 100 foreign FIUs to exchange information on anti-money laundering and combating the financing of terrorism.

Enforcement and Asset Freezing

The Japanese government is committed to investigating and prosecuting money laundering and terrorist financing offenses. The country has also implemented asset freezing measures to prevent funds from being used for and flowing to terrorists.

Conclusion

Japan’s laws and regulations aimed at preventing the collection and provision of terrorist funds are essential in combating the growing threat of terrorism. By strengthening its risk-based approach, increasing transparency in beneficial ownership information, utilizing financial intelligence units, and enforcing strict penalties for offenders, Japan is demonstrating its commitment to maintaining a safe and secure environment for its citizens.

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