BANK SECRECY AND FINANCIAL CRIME IN JAPAN: NEW REPORT REVEALS ALARMING TRENDS IN MONEY LAUNDERING
Growing Concerns in Japan’s Financial Sector
A recent report by the National Public Safety Commission has shed light on a growing problem in Japan - financial institutions being used to launder money. The “National Risk Assessment-Follow-up Report (2022)” highlights three disturbing cases of money laundering through Japanese banks.
Money Laundering Through Japanese Banks
Misusing Deposit and Savings Accounts
According to the report, some individuals have been misusing deposit and savings accounts to conceal criminal proceeds from fraud, theft, and other illegal activities. These cases include:
- Deceased persons or foreign nationals who returned to their home countries without closing their bank accounts in Japan had their accounts used to launder stolen funds.
- A foreigner arrested for illegally soliciting the transfer of accounts through social media, with hundreds of passbooks seized from his operation.
Misusing Deposit Transactions
The report also reveals cases where deposit transactions were misused for money laundering purposes. These include:
- An offender withdrew criminal proceeds derived from fraud conducted overseas and transferred them to a Japanese account by disguising them as legitimate business income.
- A large number of stolen coins were deposited into a third party’s account at an ATM operated by a financial institution, before being withdrawn in bills at another ATM.
Misusing Domestic Exchange Transactions
Additionally, the report highlights cases where domestic exchange transactions were misused for money laundering purposes. These include:
- A Vietnamese individual transferred proceeds from underground banking to the account of a relative who had become a naturalized Japanese citizen with a Japanese name.
Call for Stricter Regulations and Enforcement
The National Public Safety Commission’s findings underscore the need for stricter regulations and enforcement mechanisms to combat financial crime in Japan. As the country continues to grapple with these issues, it remains to be seen whether authorities will take concrete steps to address this growing problem.