### Section 3. Measures to Prevent Transfer of Criminal Proceeds

### 1. Activities based on Implementation of the Act on Prevention of Transfer of Criminal Proceeds

Criminal proceeds obtained by criminal organizations such as Boryokudans are used for “activity funds” for new crimes or for expenses on procuring weapons, which maintain and strengthen the criminal organizations, as well as fostering organized crime. Thus it is important to prevent the transfer of criminal proceeds as well as ensuring that criminals are deprived of them in order to undermine these organizations and drive them to extermination. Based on laws relating to the prevention of the transfer of criminal proceeds (hereafter referred to as “Act on Prevention of Transfer of Criminal Proceeds”), the police are promoting measures against transfer of criminal proceeds in cooperation with related organizations, businesses, foreign related organizations.

## (1) Measures to Secure the Proper Observation of the Act on Prevention of Transfer of Criminal Proceeds

In order to effectively promote measures against transfer of criminal proceeds, it is important to take measures to confirm the ID of customers, create and save transaction records, and report suspicious transactions by specified business operators $ ^{1} $ based on the Act on Prevention of Transfer of Criminal Proceeds. In this regard, the National Public Security Commission and the NPA are making efforts to advance understanding and cooperation toward the Act on Prevention of Transfer of Criminal Proceeds through various seminars or websites for specified business operators in cooperation with related organizations. When the NPSC and the NPA recognize that specified business operators are breaching obligation to confirm ID of customers, they can give statement to presiding administrative agencies holding jurisdiction over specified business operators that correction order shall be executed based on the Act on Prevention of Transfer of Criminal Proceeds. In 2009, nine such allegations were implemented.

## (2) Suspicious Transaction Report

By the report system of suspicious transaction stipulated in the Act on Prevention of Transfer of Criminal Proceeds, the information submitted by these businesses to their respective presiding administrative agencies is compiled by the NPSC and NPA for sorting and analysis and then submitted to investigative institutions such as Prefectural Police and the public prosecutor's office for use in investigations, etc. of money laundering offenses. In 2009, the number of cases in which information concerning suspicious transactions has provided clues leading to a case clearance was 337 cases, an increase of 162 cases (92.6%), among which 26 cases were fraud cases, occupying 78.6% of the total. There were nine cases leading to clearances of money laundering offenses originated with information on suspicious transaction.

The NPSC and NPA, while closely cooperating with each investigation agency and other organizations, analyze submitted information comprehensively and strive to grasp the flow of funds that Boryokudan and other antisocial influences are involved in. In addition, they try to figure out the international status of transfer of criminal proceeds, by exchanging opinions on overseas remittance with foreign FIUs. $ ^{2} $

Note 1: Businesses stipulated in Article 2 paragraph 2 of Act on Prevention of Transfer of Criminal Proceeds

2: Abbreviation of Financial Intelligence Unit. Organizations established in each country to gather and analyze information on suspicious transactions and provide such information to investigative authorities and other organizations. The National Public Safety Commission and the NPA are in charge of Japan’s FIU which is called the Japan Financial Intelligence Center (JAFIC).