(2005), the goal of which is the “severance of relationships with anti-social forces”, representing efforts to observe laws and ordinances related to the prevention of money laundering and to eliminate transactions made by Boryokudan and other anti-social forces.

On the issue of countermeasures against money laundering, the Association has compiled and disseminated a guidebook entitled “Preventing Financial Crimes and Issues at the Teller’s Window.” The guidebook is designed as study material, providing correct knowledge for tellers on how to verify customer identity and report suspicious transactions based on the Act.

In addition, regarding the preparation of exclusionary clauses on the Boryokudan in relevant sectors, the Association has concluded various agreements incorporating such clauses as those on financial trading and deposit transactions. Cooperative financial institutions have also advanced the alteration of their Articles of Incorporation. They have taken up an independent initiative in 2012 to partially revise their Articles of Incorporation to eliminate any anti-social activity from capital contributing members.

## 3 Credit Cooperatives

In Japan, all credit cooperatives are members of the National Central Society of Credit Cooperatives (NCSCC). To ensure that countermeasures against money laundering, etc., are implemented, NCSCC compiles and gives examples of how to verify customer identity and of procedures concerning suspicious transaction reports, and also provides the members such information by holding briefing sessions and training sessions. Furthermore, NCSCC compiles posters and leaflets – which are available from the NCSCC website - to inform members about the customer due diligence procedure, distributing these to member cooperatives. NCSCC also takes thorough steps against money laundering and terrorist financing and on information sharing within the credit cooperative industry, for example by informing members of parties subject to asset freezing as part of countermeasures against terrorist financing.

## 4 Life Insurance Industry

The Life Insurance Association of Japan (LIAJ), of which all domestic life insurance companies in Japan are members, works to achieve appropriate operations amongst its member companies by incorporating countermeasures against money laundering anti-social forces in its Code of Conduct.

LIAJ has compiled the “Countermeasures Against Money Laundering and Terrorist Financing Handbook” and the “Countermeasures Against Money Laundering and Terrorist Financing FAQs” for both executives and regular employees, thereby assisting member companies in their efforts. In addition, LIAJ also devises posters and posts important points pertaining to the subject on its website.

To address the issue of anti-social forces, LIAJ has devised a directive entitled “Guidelines for Coping with Anti-social Forces in the Life Insurance Industry.” With a view to dissolving insurance contracts of parties found to be anti-social forces or that are engaged with anti-social forces in a manner unacceptable to society, the LIAJ has compiled reference material for member companies entitled “Insurance Contract Rules and Regulations Regarding