"Liaison Council for Preventing Transfer of Criminal Proceeds and Preventing Damage by Antisocial Forces in the Real Estate Industry" so that the real estate industry as a whole, can promote collective efforts to prevent the transfer of criminal proceeds and eliminate antisocial forces in preparation for the total enforcement of the Act on Prevention of Transfer of Criminal Proceeds. The Liaison Council is promoting such efforts as; discussing the development of the responsibility system with relevant operators, preparing and distributing a brochure, etc., for the purpose of enlightenment, and the sharing of information concerning the operation of systems including the Act on Prevention of Transfer of Criminal Proceeds.

## 4 Efforts of Lawyers Associations

The Japan Federation of Bar Associations had been examining the relation between anti-money laundering measures and the duties of a lawyer, recognizing the importance of the measures, and establishing with a resolution of the general assembly meeting in March 2007, the "Rules on Identification of Clients and Record-Keeping" which stipulates the obligations of a lawyer; e.g., confirming the identity of a client, preserving the records for certain practices, and not accepting a request if suspected to be used for transfer of criminal proceeds. The rule was put into effect on July 1, 2007.

The Japan Federation of Bar Associations, in cooperation with each bar association, distributed PR leaflets, gave seminars and delivered training videos on the Internet for a successful implementation of this rule.

## Section6 Measures to Ensure the Effectiveness of the “Act on Prevention of Transfer of Criminal Proceeds”

When it finds that a specified business operator has violated the obligation of customer identification, etc., the National Public Safety Commission states its opinion to a competent administrative agency under the Act on Prevention of Transfer of Criminal Proceeds.

During the process of investigation of “furikome” fraud by a registered mail to mail receiving services providers (so-called private P.O box companies) suspected of violation of the obligation of customer identification, etc., in accordance with the Act on Prevention of Transfer of Criminal Proceeds, the National Public Safety Commission requested that 11 business operators to submit a report and data, and of those 4 business operators were recommended to the Minister of Economy, Trade and Industry under the d Act, Article 17.1. Next, the Minister of Economy, Trade and Industry issued a remedy order to two business operators within the year.

### Current Conditions of the Application of Penal Provisions regarding Delivery/Provision of Deposit/Savings passbook, etc. (tentative number of cases)

In the Act on Prevention of Transfer of Criminal Proceeds Article 26, which replaces the Customer Identification Act, Article 16-2, regulates the punishment for selling and/or buying of deposit/savings passbooks, etc.

Enforcement of Penal Provisions according to the Act on Prevention of Transfer of Criminal Proceeds come into force on March 1, 2008. As such, the Customer Identification Act by Financial Institutions is applied to the selling and/or buying of deposit/savings passbooks, etc., for cases before this date (statutory punishment is the same).

There were 541 cases of violation of the Act on Prevention of Transfer of Criminal Proceeds Article 26 (delivery/provision of deposit/savings passbook, etc.) (including arrests for the violation of the Customer Identification Act, Article 16-2) in 2008. Of these, 530 cases (98.0%) related to delivery or provision.