Silviase/jgov_v1.4_full_ann huggingface dataset:
records described in (1) through (3) above are expected to work as warnings against persons who attempt to transfer criminal proceeds and to enable tracing proceeds afterwards.

Suspicious transaction reports described in (4) will be used for investigations into money laundering crimes and predicate offences and will prevent criminals from abusing economic and financial systems, so that its soundness can be assured.

The purpose of notification pertaining to foreign exchange transactions described in (5) is to enable tracing funds internationally and also to respond to the FATF Special Recommendations regarding terrorist financing.

Table 2-1 Measures of Specified Business Operators Obliged by the Act

Specified Business Operators (Paragraph 2 of Article 2)	Customer identification (Article 4)	Preparation and preservation of customer identification records (Article 6)	Preparation and preservation of transaction records (Article 7)	Reporting of suspicious transactions (Article 9)
Financial Institutions, etc. (Item 1 through 33)	○	○	○	○
Financial Leasing Operators (Item 34)
Credit Card Operators (Item 35)
Real Estate Agents (Item 36)
Dealers in Precious Metals and Stones (Item 37)
Postal Receiving Service Providers (Item 38)
Telephone Receiving Service Providers
Judicial Scrivener (Item 40)
Certified Administrative Procedures Specialists (Item 41)
Certified Public Accountant (Item 42)
Certified Public Tax Accountants (Item 43)
Lawyer (Item 39)	To be prescribed in the Rules of the Japan Federation of Bar Associations in line with cases of judicial scriveners, etc. (Article 8)
## 6 Dissemination of Information on Suspicious Transactions (Article 11 and 12)

In order to make use of information on suspicious transactions for domestic and overseas investigation, etc., the National Public Safety Commission may disseminate information to authorities in charge of investigating criminal cases such as public prosecutors assistant officers to prosecutors, judicial police officials (police officers, narcotics control agents, coast guards), customs officers and personnel of the Securities and Exchange Surveillance Commission and to a foreign Flu under certain conditions. The STR regime will be detailed in Chapter 4 (Reports of Suspicious Transactions) and Chapter 5 (Promotion of International Cooperation).

## 7 Supervisory Measures (Article 13 through 17, 23, 24, 27)

The law provides inspection power to competent administrative authorities so that they can detect irregularities by specified business operators. The authorities can also employ various supervisory methods, etc. such as guidance, advice, suggestion, and order for rectification in the case of violation for a better compliance by specified business operators. Persons who have failed to submit reports or materials, or submit false reports or materials, or who refused on-site inspections, shall be punished with imprisonment with labor for not more than one year or a fine of not more than three million yen. A person who violates an order for rectification shall be punished with imprisonment with labor for not more than two years or a fine of not more than three million yen.

Moreover, to complement supervisory function, the National Public Safety Commission is authorized to state its opinion to competent administrative authorities (and make necessary inspections on business operators) when it detects violations.

### 8 Penal Provisions regarding Reception/Delivery/Provision of Deposit/Savings Passbooks, Exchange Transaction Cards, etc. (Article 26, 27)

Sold or bought deposit/savings passbooks, ATM cards, Exchange Transaction Cards, etc. can be sold, bought, and misused in various crimes such as money laundering. In order to prevent this, this act regulates persons who take over, receive or obtain a deposit/savings passbook, etc. for value or for free, shall be punished by a fine of not more than 500,000 yen and a man who has committed, as a business, these crimes shall be punished by imprisonment with work for not more than 2 years or a fine of not more than 3,000,000 yen (optional cumulative imposition).

Furthermore, persons who invite or solicit another party to assign, deliver or provide a deposit/savings passbook, etc., for value or onerously, shall be punished by a fine of not more than 500,000 yen.

In addition, the penal provision regarding receiving sold or bought Exchange Transaction Cards (Article 27), etc. is a newly established regulation according to the amendment of the Act on Prevention of Transfer of Criminal Proceeds in April 2010, as described in Section 1-1 of this Chapter.
Figure 2-3 Outline of the Act on Prevention of Transfer of Criminal Proceeds

Notification of STRs

Competent administrative authority

Preventing economic and financial systems from being abused for the transfer of criminal proceeds

Reporting of suspicious transactions (STRs)(Note 1)

Identification of a customer etc., preparation and preservation of customer identification records and transaction records, etc.

Dealers in Precious Metals and Stones

Postal Receiving Service Providers

Telephone receiving Service Providers

Note 1: Lawyers, Judicial Scriveners, Certified Administrative Procedures Specialists, Certified Public Accountants and Certified Public Tax Accountants are not subject to the obligation of suspicious transaction reporting.

Figure 2-4

Presentation of a driver's license, health insurance certificate, etc.

Presentation of a copy of a certificate of residence or a government-issued document without a photo

+

Non Face-to-Face Transactions (Website, Mailing Service, etc.)

Send the personal identification document or its copy

+

For Corporations Confirm the name of the corporation, headquarters or main office. Accordingly, confirmation of the person in charge of the actual transaction is required.

+

Confirmation of the person in charge of the actual transaction

+

Send documents related to the transaction to both addresses, which do not need forwarding, written on the personal identification document of the corporation and the person in charge of the actual transaction, by postal mail.

If the person is a short-term visitor (such as a tourist) who does not have residence in Japan, and whose domicile in the country foreign national belongs to cannot be verified by his/her passport, etc.

Although the transactions requiring confirmation of personal identification cannot be carried out without residence confirmation in principle, transactions for foreign money exchange, sale or purchase of jewelry, precious metals, etc., are possible by presenting a passport or crewman's pocket-ledger describing nationality and passport number, in addition to name and birthdate.

*If a stamp of permission of landing certifies the stay within 90 days, this corresponds to the fact that the person does not have residence in Japan.
their dissemination to foreign FIUs as well as a function to complement supervisory measures against specified business operators. JAFIC was established within the Organized Crime Department, the Criminal Investigation Bureau of the National Police Agency, as a new Japan's FIU to perform these functions.

## Section2 Mission and Structure

JAFIC is in charge of the following tasks provided in the Act on Prevention of Transfer of Criminal Proceeds:

- Collection, arrangement, analysis and dissemination of information on suspicious transactions to investigative authorities, etc.

- Dissemination of information to foreign FIUs;

- Provision of information and complement of supervisory measures by administrative authorities to ensure that specified business operators take required measures;

JAFIC also plans and examines the legal system related to AML and various measures such as "the Guideline for Promotion of the Criminal Proceeds Control", etc. described in Section 4. It also participates in discussion of international standards related to AML measures.

Among these tasks, the status of the analysis and dissemination of STRs will be explained in Chapter 4, while cooperation with foreign FIUs and international institutions will be described in Chapter 5.

The structure of JAFIC is illustrated in Fig. 3-1. It is currently composed of about 80 employees under the Director for prevention of Money Laundering.

On the other hand, the "Task Force specializing in resolving criminal proceeds" is established in each Prefectural Police in charge of tracing criminal proceeds and investigating money laundering crimes, etc.

Figure3-1 Structure of JAFIC
Specified business operators including financial institutions should take initial anti-money laundering measures according to the Act on Prevention of Transfer of Criminal Proceeds. As stated in this chapter separately, in addition to the analysis of financial intelligence, JAFIC endeavors to publicize the actual conditions of money laundering and legal systems and relevant countermeasures so that specified business operators can take the proper actions and gain cooperation from the public. Relevant ministries and agencies in charge of supervising business operators not only exercise the supervisory function to secure the fulfillment of obligations, but also provide supports by issuing Lists of Reference Cases of Suspicious Transactions and holding seminars in cooperation with industry organizations. On the other hand, investigative authorities, such as the police, detect money laundering offences and predicate offences and, as a result, confiscate criminal proceeds within their respective jurisdictions.

These ministries and agencies carry out their duties in each position, while also cooperating with each other by exchanging useful information, discussing issues in preventing money laundering and other ways.

Also, for the purpose of promoting effective and appropriate measures against transnational organized crimes and international terrorism in a comprehensive and active manner, the "Headquarters for the Promotion of Measures against Transnational Organized Crime and International Terrorism" was established in a Cabinet Meeting in August 2004. In addition, the "Ministerial Meeting Concerning Measures against Crime" which was started by the cabinet meeting agreement in September 2003, frequently discusses anti-money laundering measures.

Figure 3-2 Anti-money Laundering Measures in Each Governmental Organization
## (5) Promotion to deprive Criminal Proceeds

Measures to prevent the transfer of criminal proceeds shall be properly carried out, by not only arresting suspects, but also by detecting criminal proceeds and utilizing temporary restriction order before institution of prosecution. Also, close coordination with the Public Prosecutor's Office shall be further strengthened with regards to the deprivation of criminal proceeds.

## (6) Promotion of international cooperation

The police should strengthen international cooperation by various ways such as exchanging information with foreign FIUs, responding to revisions of international recommendations, and supporting foreign countries in implementing international recommendations.

The police has already put into practice, actively as described in Chapter 6, the policies indicated by "the Guideline for Promotion of the Criminal Proceeds Control" through criminal investigations and other ways after the Act on Prevention of Transfer of Criminal Proceeds came into force.

Figure 3-3 Overview of the Promotion Outline of Measures against Criminal Proceeds
## Section5 Cooperation with Business Operators and the Public

# Paragraph1 Explanation and Provision of Information, etc. on Seminars Targeting Specified Business Operators

## 1 Explanation on Seminars for Postal Receiving Service Providers

In February 2010, the “Briefing on the Act for the Prevention of Transfer of Criminal Proceeds” seminar for Postal Receiving Service Providers was held by the Ministry of Economy, Trade and Industry, in Tokyo, and JAfic officials explained the outline of the law, obligations imposed on specified business operators, etc.

## 2 Explanation on Workshops for Shinkin banks

In July 2010, the regular meeting, “Shinkin Foreign Exchange Workshop,” for all member of Shinkin banks throughout Japan was held in Tokyo, and JAFIC officials explained the outline of the Act on Prevention of Transfer of Criminal Proceeds, obligations imposed on specified business operators and other matters.

## 3 Explanation on Seminars for Real Estate Agents

The NPA jointly held with the Financial Services Agency, “Suspicious Transactions Reporting” seminars for financial institutions 17 times, in total at 12 places in Tokyo or at Local Finance Bureaus around the country, etc., from September to

Explanation at a Seminar

Seminar for Currency exchanging Operators

November 2010, where cases of STRs, utilized by investigative authorities, and points which should be kept in mind when filing the report. etc., and provided them with information related to suspicious transactions reporting by answering questions made by employees of financial institutions.
Website of the National Police Agency

http://www.npa.go.jp

## 4 PR on Website

The website of JAFIC has been created in the National Police Agency website, which publicizes the annual report, JAFIC’s activities, and description of the Act on Prevention of Transfer of Criminal Proceeds.

## Website of JAFIC

http://www.npa.go.jp/sosikihanzai/jafic/index.htm

Paragraph2 Provision of Information for Specified Business Operators following the U.N. Security Council Resolution

When, for example, the United Nations Security Council adopts a resolution on measures for freezing the assets related to person or organization deemed to be involved in terrorism, etc., the National Police Agency, in cooperation with relevant Ministries and Agencies, shall disseminate the content to specified business operators and request the thorough implementation of the fulfillment of customer identification obligation and suspicious transaction reporting obligation on the person or organization whose assets, etc. can be targeted for freezing. And, the targeted persons or organizations of the said measures shall be listed on the website.

Furthermore, in response to the adoption of a resolution at the United Nations Security Council No. 1874 in June 2009, the measures to freeze assets which can contribute to the plans and activities related to nuclear, ballistic missiles, or other weapons of mass destruction of North Korea, were determined to be carried out in July of the same year. In addition to disseminating these measures to
Industry which is a competent administrative agency of the Postal Receiving Service Providers in the same year, and 1 opinion to the Minister of Public Management, Home Affairs, Posts and Telecommunications, which is a competent administrative agency of the telephone receiving agency, so in total 13 opinions were delivered to take necessary measures to rectify a breach of the Act on the Prevention of Transfer of Criminal Proceeds by the business operators. In accordance with the previous opinion statement of the National Public Safety Commission / the National Police Agency, the Minister of Economy, Trade and Industry issued 3 rectification orders to postal receiving service providers.

Table 3-1 Implementation of Request to submit report etc. by the National Public Safety Commission/ the National Police Agency

2008	2009	2010
Number of requests to submit reports to the specified business operators	11	16	7
Number of directions to conduct inquiry to the prefectural police	1	2	10
Number of stating opinions to the competent administrative agencies	4	9	13

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

The article 26 of the Act on Prevention of Transfer of Criminal Proceeds prescribes the punishment for buying and selling of deposit/saving passbooks etc. which was prescribed in the article 16-2 of the Customer Identification Act, which was abolished with the enforcement of the above mentioned Act.

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

There were 765 arrest 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 2010.
# Chapter 4

# Reports of Suspicious Transactions

The Act on Prevention of Transfer of Criminal Proceeds requires specified business operators to file a report to a competent administrative authority if a transaction is suspected to be related to criminal proceeds. This measure was made obligatory for the first time in the Anti-Drug Special Provisions Law and was taken over to the Act on Prevention of Transfer of Criminal Proceeds through the Act on the Punishment of Organized Crime.

## Section1 Outline of the Suspicious Transaction Report System

## 1 Purpose

The Suspicious Transaction Report System aims, to support investigation on money laundering and its predicate offences, to prevent criminals' illegal use of the services of specified business operators and to ensure soundness and trust of business activity.

## 2 Cases where Reporting is Required

Specified business operators are required to file an STR to a corresponding supervising authority, when they suspect, during the course of their businesses (types of the businesses listed in table 2-2), that assets they received are criminal proceeds or that their client commits an offence of concealment of criminal proceeds.

## 3 Announcement of List of Reference Cases of Suspicious Transactions (Guideline)

Specified business operators are expected to judge whether the concerned transaction is a suspicious transaction with their own knowledge and experience at their industries, taking into account the form of transaction, client attributes, conditions surrounding the transaction and other factors. It may well be the case, however, that some operators simply lack adequate understanding of money laundering and find it difficult to make an appropriate judgment. Therefore, in Japan, since the time of the Anti-Drug Special Provisions Law, "List of Reference Cases of Suspicious Transactions," has been issued for specified business operators as a guideline for reporting. It is often called the "Reporting Guideline." After full enforcement of the Act on Prevention of Transfer of Criminal Proceeds, which covers a wider variety of specified business operators than before, competent administrative authorities have announced reference cases of suspicious transactions, based on the characteristics of respective specified business operators.

These reference cases are just, as clarified in the introduction thereof, samples of suspicious transactions and are intended merely for reference. This means, it is for the specified business operator to judge whether an individual case is a suspicious transaction, taking into account the client's attributes, conditions surrounding the transaction and other specifics of the transaction. All the transactions that appear to match the listed samples do not necessarily have to be reported as suspicious, while transactions that do not fall within any of them may still be suspicious and subject to reporting.
## 4 Analysis of Bank Account used for Crime

JAFIC has carried out operations to statistically abstract the characteristics of bank accounts used for crime in cooperation with prefectural Police, etc. in order to make use of it in arranging and analyzing information regarding STRs, and as part of information provision to the specified business operators that is regulated in the Act on Prevention of Transfer of Criminal Proceeds, Article 3.

## 5 Flow of Suspicious Transactions Reporting

Information reported by specified business operators is collected at the National Public Safety Commission / the National Police Agency (JAFIC), via the competent administrative authorities. JAFIC arranges and analyzes STRs, and then disseminates these STRs to investigative authorities such as the Prefectural Police, the Public Prosecutors Office, etc.

The investigative authority receives and uses STRs as clues for criminal investigation, and for countermeasures against organized crime such as detection of criminal proceeds and tracing the source of illicit funds. JAFIC also provides foreign FIUs with information of overseas transactions if needed, in order to trace criminal proceeds transferred across international borders.

Furthermore at JAFIC, a detailed analysis of STRs is carried out by using the information gathered by the police for organized crime countermeasures, etc. and the results of analysis are disseminated to related Prefectural Police.

Figure 4-1 Flow of STRs from Specified Business Operators, through JAFIC to Investigative Authorities

## 6 Information Security Measures

Since STRs include sensitive information on individuals and business activities, JAFIC carries out due information security measures to prevent leakage, loss, damage, or other misconduct. The handling of relevant information is set forth in the regulations of the National Public Safety Commission.

In particular, since a large amount of information is stored in the database system which manages suspicious transactions, sufficient security measures are required. Various security measures taken by JAFIC are as follows.

## (1) Management of Entering and Exiting

Terminals that can access information stored in the JAFIC database are located in a room with doors that are controlled by a biometric authentication system. Only a limited number of staff members are permitted to enter the room.

## (2) Three steps of Authentication

In order to access the information in the JAFIC database, three levels of authentication are required. In other words, information can be reached only after authentication is carried out 3