Here is the converted article in Markdown format:

Japan Makes Progress in Improving Anti-Money Laundering and Counter-Terrorist Financing Measures

Tokyo, Japan - The Financial Action Task Force (FATF) has released a follow-up report on Japan’s progress in improving its anti-money laundering (AML) and counter-terrorist financing (CFT) measures. According to the report, Japan has made significant strides in addressing technical compliance deficiencies identified in its previous Mutual Evaluation Report (MER).

Recommendation 2: Clear Responsibility for AML/CFT Policies

In its 4th round MER, Japan was rated “Partially Compliant” with Recommendation 2 due to the absence of clear responsibility for defining AML/CFT policies informed by risks and regularly reviewed. However, since adopting its MER, Japan has established an Inter-ministerial Council for AML/CFT & CPF Policy and issued an AML/CFT/CPF action plan.

National AML/CFT/CPF Action Plan

The new National AML/CFT/CPF Action Plan promotes the development of a national policy informed by the risks identified in the NRA and includes action items for improving Japan’s CFT measures, such as:

• Strengthening the enforcement of asset freezing measures
• Legislative reforms

Inter-ministerial Council

The Inter-ministerial Council is tasked with planning and implementing measures in accordance with national policies.

Re-Rating

As a result of Japan’s progress, Recommendation 2 has been re-rated from “Partially Compliant” to “Largely Compliant”. This rating upgrade reflects Japan’s significant efforts to address the deficiencies identified in its MER.

Conclusion

Overall, Japan has made substantial progress in addressing technical compliance deficiencies and improving its AML/CFT measures. The country has been upgraded from “Partially Compliant” to “Largely Compliant” with Recommendation 2.

The FATF will continue to monitor Japan’s progress and expects the country to remain in enhanced follow-up. Japan will also continue to inform the FATF of its progress in improving the implementation of its AML/CFT measures.

Technical Compliance Ratings

Here is a table showing Japan’s technical compliance ratings for each Recommendation:

Note: There are four possible levels of technical compliance: compliant (C), largely compliant (LC), partially compliant (PC), and non-compliant (NC).