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AML/CFT Legislation in Japan

AML/CFT Legislation in Japan

MemberCheck's solutions in Japan
PEP and Sanction Check
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Adverse Media Check
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Customer Identity Verification
Verify the identity of your Japanese customers and avoiding the consequences of non-compliance.
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AML Consulting Service
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Jurisdictional Risk Checks
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Compliance as a Business
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Japan's AML/CTF supervisor​

Japan Financial Intelligence Centre - (JAFIC)​

Anti-money laundering procedures in Japan have been gradually developed in conjunction with worldwide initiatives. To begin with, "the Law Concerning Special Provisions for the Narcotics and Psychotropic Control Law, etc., and Other Matters for the Prevention of Activities Encouraging Illicit Conduct and Other Activities Involving Controlled Substances through International Cooperation" (hereinafter referred to as "the Anti-Drug Special Provisions Law") was enacted in 1992 as one of the domestic laws implementing the "UN New Narcotics Convention," with the primary goal of dealing with proceeds of drudging In response to "the FATF 40 Recommendations,"

The financial investigation unit of Japan was named Japan Financial Intelligence Centre (JAFIC), when the Act on the Prevention of Transfer of Criminal Proceeds went into effect on April 1, 2007, JAFIC was founded inside the Organised Crime Department of the Criminal Investigation Bureau of the National Police Agency.

JAFIC is an organisation that plays a key role in enforcing the law, primarily by collecting, organising, and evaluating suspicious transaction reports (STRs) filed by specific company operators, and then sending that information to public prosecutors and other law enforcement agencies.

Japan Enactment of Compliance

In Japan, financial institutions, must establish and implement a comprehensive compliance framework that covers all aspects of their business.

The comprehensive guidelines require a sound and proper business operations to be expressed in a compliance program that focuses on the following:

  • Establishment of internal rules to ensure compliance with applicable laws and regulations.
  • Appointment of an officer who will be responsible for ensuring compliance with AML regulations (of Japan);
  • Implementing AML measures equivalent to those required under Japanese law at its overseas subsidiaries and branches.
  • Continual training for Compliance and Anti-Financial Crime departments and units in order to utilise human performance to meet AML/CFT implementation standards at the international and local levels.
  • Information to be sent to the appropriate authorities and judicial agencies, to assist them in the preparation of law enforcement activities and criminal prosecutions.
  • Obtaining data about sheltered financial transactions from both official and non-official sources.
  • Receipt and requests for information on transactions suspected of being money laundering operations from entities subject to the AML law of Japan.
  • Information gathering and analysis - two of the most important aspects of the compliance program.
  • Evaluation of information.

How can MemberCheck Help?

Our clients are provided with a secure and simple solution in regard to scanning for politically exposed or high-risk individuals, as well as checking names against sanction, regulatory, law enforcement, and other official lists.

Use our sophisticated scan filters and due diligence workflow to minimise the amount of time you spend sorting through, false matches. Scan results and reporting sections allow you to access customer details, whenever and wherever required, as well as download reports, to customise for further investigation or to provide evidence of your AML program compliance for auditing purposes.

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* This page is intended as general information only and should not be relied on as the sole source of information for your AML obligations and AML program. Please visit your local regulatory authority sites for the latest relevant and full information.

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