Japan's AML/CTF supervisor​s
Together with global initiatives, anti-money laundering practices have been gradually developed in Japan. As one of the domestic laws implementing the "UN New Narcotics Convention," 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 passed in 1992 with the main objective of dealing with illicit conduct and other activities involving controlled substances.
When the Act on the Prevention of Transfer of Criminal Proceeds took effect on April 1, 2007, the Japan Financial Intelligence Centre (JAFIC), a division of the Criminal Investigation Bureau of the National Police Agency, was established inside the Organised Crime Department.
To effectively execute the law, JAFIC gathers, organises, and evaluates suspicious transaction reports (STRs) submitted by firm operators. JAFIC subsequently sends this data to public prosecutors and other law enforcement organisations.
How do you comply with AML/CTF regulations in Japan?
Financial institutions in Japan are required to create and implement an extensive compliance framework that addresses every facet of their operations.
According to the detailed criteria, a compliance program that emphasises the following must demonstrate sound and proper business operations.
Establishing internal policies to guarantee adherence to relevant laws and regulations
The appointment of an officer in charge of monitoring adherence to Japanese AML legislations
Implementing AML policies at its foreign subsidiaries and branches that are comparable to those mandated by Japanese law
To achieve AML/CFT implementation standards at the global and local levels, Compliance and Anti-Financial Crime departments and units must receive ongoing training
To help with the planning of law enforcement operations and criminal prosecutions, information should be given to the relevant authorities and judicial bodies
Obtaining information about financial transactions that were hidden from view from both official and unofficial sources
Receiving and responding to inquiries about transactions that are allegedly part of money-laundering operations from organisations covered by Japanese AML regulations
Gathering and analysing information are two of the compliance program's most crucial components
Information evaluation