al Center for Elimination of Boryokudan and the Bar Association established the “Securities Police Liaison Council” in each prefecture, and have improved the effectiveness of the elimination of anti-social forces from the industry and of the prevention of money laundering, etc., through information exchange of the field level and seminars.

Additionally, the Japan Securities Dealers Association established the “Securities Safety Measures Support Center” in March 2009. It is registered as organization for management of information on unjust demands based on the Law Concerning Prevention of Unjust Acts by Boryokudan Members, by the National Public Safety Commission/the National Police Agency. It carries out operations to receive inquiries and consultations from securities companies.

The Japan Securities Dealers Association also established the “Rules regarding Severing Relationships with Anti-social Forces” in May 2010, obligating each member to 1) introduce articles regarding assurance by customers “that they are not an anti-social force” when opening a new securities account, 2) introduce articles regarding elimination of anti-social forces in their transaction clauses etc., 3) screen new and existing customers, and 4) ban the conclusion of contracts with anti-social forces. Following the amendment of the Act on Prevention of Transfer of Criminal Proceeds, the “FAQ concerning the Act on Prevention of Transfer of Criminal Proceeds and Related Cabinet Orders and Ministerial Ordinances” was revised in August 2012, and “Members’ Concept of Reporting Suspicious Transactions” was revised in March 2013 so as to raise members’ awareness about actions to be taken based on the amendment of the Act on Prevention of Transfer of Criminal Proceeds. In January 2013, the Japan Securities Dealers Association’s system for inquiring as to whether or not a certain person is an anti-social force and the National Police Agency’s database were connected with each other, and the operation of the connected system started in earnest in February of the same year. The system is used to make inquiries about all of members’ new customers.

## 7 Moneylending Industry

Japan’s moneylending industry has a self-regulating body called the “Japan Financial Services Association.” In efforts to prevent damages caused by money laundering and anti-social forces, the Association implements voluntary regulations, which has clarified relevant items for verification purposes to be added to internal regulations by members as self-regulation.

In addition, members are provided with reference materials such as guidelines or "model regulations" for use in formulating internal regulations. These guidelines show specific examples of relevant items to be included.

To ensure effective voluntary regulation, members were inspected on the full body of their internal regulations in FY2011, and guidance and instruction were provided where the adoption of relevant items was found to be insufficient. As a result, virtually all members (99%) have now devised compliant regulations.

In September FY2011, a Boryokudan exclusion clause was added to contract formats sold to members, and the revised format was posted on the Association’s website, enabling not