Banks Urge Customers to Notify Changes in Personal Information
Strengthening Anti-Money Laundering and Combating Financing of Terrorism Measures
Tokyo, Japan - In a bid to strengthen anti-money laundering (AML) and combating financing of terrorism (CFT) measures, banks in Japan are urging customers to notify them of any changes in their personal information.
Why is this important?
According to industry sources, banks have been taking proactive steps to confirm with customers whether their information has changed. This includes sending emails or letters to customers as part of an effort to prevent the misuse of deposit accounts opened by visitors to Japan, which were sold to criminal organizations and used for money laundering upon their return to their home countries.
What are the regulations?
Under AML/CFT regulations, banks are required to monitor transactions with customers to ensure that they do not constitute suspicious transactions in terms of ML/TF. The Japanese Bankers Association is working to develop monitoring systems for common use among financial institutions.
New Systems and Measures
- Banks have introduced systems to screen against databases of anti-social forces and sanctioned persons at the time of onboarding and whenever the lists are updated.
- Customers are required to notify banks of any changes in their previously provided customer information, such as a change of address due to relocation or other reasons.
What does this mean for customers?
Customers are urged to promptly inform banks of any changes in their personal information to ensure that financial institutions can accurately identify and verify customers’ identities and prevent the misuse of their accounts. Failure to comply with these regulations may result in administrative penalties, including business improvement orders or other sanctions.
What is being done to strengthen AML/CFT measures?
- The Financial Services Agency (FSA) has strengthened inspections focused on AML/CFT measures and off-site monitoring of financial institutions.
- The agency has requested that financial institutions complete the development of their governance arrangements in compliance with guidelines published by the FSA by the end of March 2024.
International Cooperation
The Japanese government has been working closely with international organizations, such as the Financial Action Task Force (FATF), to strengthen AML/CFT measures and prevent the misuse of financial systems. Japan has been a member of the FATF since its establishment in 1990 and has developed its legal framework for AML/CFT based on FATF recommendations.
What can you do?
For more information on AML/CFT regulations in Japan, please contact your local bank or financial institution.