Silviase/jgov_v1.4_full_ann huggingface dataset:
Table 4-3 Number of STR-initiated cases by type of crime

Year	2009	2010	2011	2012	2013
Crime	265	258	360	470	453
Fraud	48	76	145	239	321
Violation of Act on Prevention of Transfer of Criminal Proceeds	0	0	0	0	1
Fraud and Violation of Act on Prevention of Transfer of Criminal Proceeds	0	0	0	0	1
Fraud and violation of Investment Deposit and Interest Rate Act	0	0	0	0	1
Violation of Immigration Act	4	5	6	106	123
Violation of Stimulants Control Act	0	16	17	16	17
Violation of the Stimulants Control Act and the Narcotics and Psychotropic Control Act	0	0	0	0	1
Violation of the Stimulants Control Act, the Narcotics and Psychotropic Control Act, and the Pharmaceutical Affairs Act	0	0	0	0	1
Falsification and supply of electromagnetic records of officially authenticated documents	0	3	3	1	8
Forgery and use of private documents and fraud	0	0	0	4	2
Falsification and supply of electromagnetic records of officially authenticated documents and fraud	0	0	0	1	1
False statement on licenses	0	0	0	0	1
Use of counterfeit signed private documents	0	0	0	0	1
Use of counterfeit signed private documents and fraud	0	0	0	0	1
Use of counterfeit securities and fraud	0	0	0	0	1
Sharing of unauthorized creation of electromagnetic records of payment cards and fraud	0	0	1	1	1
Violation of Money Lending Business Act and Investment Deposit and Interest Rate Act	5	2	5	3	5
Violation of Money Lending Business Act	1	2	3	2	3
Violation of Interest Deposit and Interest Rate Act	3	5	2	1	1
Violation of the Banking Act	1	2	3	1	5
Theft	2	1	0	2	3
Storage of stolen goods	0	0	0	0	1
Forgery and use of private documents and fraud, and fraud and violation of the Act on Punishment of Organized Crimes (con-cealment of criminal proceeds etc.)	0	0	0	0	1
Fraud and violation of the Act on Punishment of Organized Crimes (concealment of criminal proceeds etc.)	0	0	0	2	1
Purchase of stolen goods with compensation and violation of the Act on Punishment of Organized Crimes (concealment of criminal proceeds etc.)	0	0	0	0	1
Violation of the Trademark Law and the Act on Punishment of Organized Crimes (concealment of criminal proceeds etc.)	0	0	0	0	1
Violation of the Trademark Law	0	2	1	1	1
Violation of the Copyright Act	0	0	0	1	1
Extortion	2	2	2	1	1
Embezzlement	0	0	0	0	1
Others	6	16	22	34	2
Total	337	390	570	886	962

Note 1: The formal titles of the laws are as follows:

• The Immigration Act is the Immigration Control and Refugee Recognition Act

• The Investment Deposit and Interest Rate Act is the Act Regulating the Receipt of Contributions, Receipt of Deposits and Interest Rates.

Note 2: “Violation of the amended Act on Prevention of Transfer of Criminal Proceeds” includes violation of the Customer Identification Act. their Subscribers and for Prevention of Improper Use of Mobile Voice Communications Services. The following describes each type of the violation.
○Fraud-related crimes (fraud and violations of the Act on Prevention of Transfer of Criminal Proceeds) totaled 776 cases, the largest number that comprises 80.7% of all cases, which included arrests for bank passbook smuggling, fraud over internet forums or online dating sites, insurance fraud committed by Boryokudan members, investment fraud involving unlisted stock deals and so forth.

Olllegal stays (violations of the Immigration Control Act) totaled 123 cases, which included foreign nationals who had overstayed or engaged in activities otherwise as supposed by the visa granted.

○Drug crimes (violation of the Stimulants Control Act and the Narcotics and Psychotropic Control Act) totaled 19 cases, which included arrests for the possession and/or smuggling of stimulants.

Counterfeiting crimes (false entries in the original of an electromagnetic notarized deed and use of such documents, false statement on licenses, use of counterfeit signed private documents and counterfeit securities, and use of illicitly-produced payment cards) totaled 16 cases, which included arrests for fraudulent receipt of child allowances and sham marriages.

○Loan sharks (violation of the Money Lending Business Act or the Investment Deposit and Interest Rate Act) totaled 9 cases, which included arrests for unregistered business operation and loan-sharking in violation of the Money Lending Business Act and the Investment Deposit and Interest Rate Act.

Underground banking (violation of the Banking Act) totaled 5 cases, which included arrests for unauthorized overseas remittances by foreign residents in Japan in violation of the Banking Act.

OTheft and related crimes (theft and storage of stolen goods) totaled 5 cases, which included arrests for wide-area-based car theft committed by Boryokudan and fraudulent cash withdrawal from ATMs using a cash card that had been obtained through ID theft.

○Money laundering offenses (violation of the Act on Punishment of Organized Crimes [concealment and receiving of criminal proceeds]) totaled 4 cases, which included arrests for concealment of criminal proceeds from various offences.

Infringement of intellectual property rights (violations of the Trademark Act and the Copyright Act) totaled 2 cases, which included arrests for the sale of counterfeit brands in violation of the Trademark Act, and for the sale of unauthorized copies of DVDs in violation of the Copyright Act.

In 2013, there was twelve money laundering offence arrests which were also STR-initiated cases, of which in addition to the above four cases, there were another eight arrests for STR-initiated predicate offenses which finally led to an arrest for money laundering as well. STR-initiated cases by predicate offence type shows that fraud, violation of the Banking Act came to 9 cases, and accounted for 75.0% of the total (see Table 4-4).
Table 4-4 The number of cases in which STRs led to arrests made for money laundering crimes

Year	2009	2010	2011	2012	2013
Predicate offenses
Fraud	4	10	9	6	6
Violation of the Banking Act	0	0	0	0	3
Violation of the Money Lending Business Act and the Investment Deposit and Interest Rate Act	4	5	5	3	1
Violation of the Money Lending Business Act	0	0	0	1	1
Violation of the Trademark Law	1	0	1	1	1
Others	0	2	2	4	0
Total	9	17	17	15	12

In 2013, the number of cases that reached confiscation and collection of equivalent value based on STRs stood at 4 (see Figure 4-5).

Table 4-5 Number of Cases that Reached Confiscation and Collection of Equivalent Value Based on STRs

2009	2010	2011	2012	2013
Confiscation	0	5	5	8	4
Collection of Equivalent Value	0	(4)	1(4)	(5)	0
Total	0	5(4)	6(4)	8(5)	4

In the investigations not initiated with STRs, STRs are still a valuable source of information used by Prefectural Police in countering organized crime.

The number of STRs used for investigation by prefectural police was 193,844 in 2013, an increase of 5,523 cases (2.9%) from the previous year (see Table 4- 6).

Table 4-6 Number of STRs Used for Investigative Purposes

2009	2010	2011	2012	2013
Number of STRs used in investigation of initiated cases	1,261	1,642	2,674	3,811	3,781
Number of STRs used in investigation of cases other than the above-mentioned cases	68,680	86,418	103,103	184,510	190,063
Total	69,941	88,060	105,777	188,321	193,844

JAFIC tries to have a clear picture of fund movement resulting from illicit activities of anti-social forces such as Boryokudan by employing various sophisticated and comprehensive analysis methods against STRs in a way, for example, linking separated STRs by customer IDs indicating identical particulars and making use of information accumulated by police or publicly available information.
To date, JAFIC has come to recognize the fact that anti-social forces were involved in the legitimate financial services behind affiliated businesses or investment partnerships, or repeatedly conducted a large amount of cross border wire transfers.

Although it can be assumed that sources of the funds handled by anti-social forces originate mainly from criminal activities, in most cases, the connection with the predicate offences is obscured by sophisticated fund manipulation creating considerable layers of fund operation. Its recent study showed that anti-social forces managed to cover up the true nature behind affiliated businesses and engaged in fund management in consultation with experts of that area, and thus it has been made quite difficult to locate the financing activity of anti-social forces.

JAFIC is taking strong initiatives to combat anti-social forces, coordinating various cooperative works with investigative authorities, customs, SESC or foreign FLUs.

## Paragraph 3 Utilization of Reports by National Investigative Authorities

## 1 Public Prosecutors Office

Public Prosecutors Office uses STRs in cases sent by investigative authorities such as the police as well as in conducting its own secret investigation. STRs are useful in identifying further crimes and accomplices in combination with corroboration of statements by offenders and associated parties and identification of bank accounts suspected of use in crime. In addition, the utilization of STRs facilitates sustained monitoring of information on the movement of money related to Boryokudan and other specified organizations, enabling assessment of trends on organizations that are highly likely to be involved in crime.

## 2 Narcotics Control Department

The Health, Labour and Welfare Ministry’s Narcotics Control Department utilizes STRs to assess the status of transfer of proceeds gained from narcotics-related crimes in narcotics smuggling cases, thereby facilitating drug crime investigations, including the arrest of offenders and confiscation of such proceeds.

## 3 Japan Coast Guard

Japan Coast Guard utilizes STRs to promote the prevention of organized smuggling of restricted items and immigrants.

It also utilizes foreign Flu information provided through JAFIC at its request for investigations into such smuggling organizations.

## 4 Customs

Customs maintains and shares a database of STRs. By referencing STRs with various types of information otherwise obtained by customs, customs can identify associations and apply said associations to investigations on Customs Act offenders. This strengthens initiatives to stop smuggling of items that pose a threat to public safety and security.
## 5 The Securities and Exchange Surveillance Commission (SESC)

SESC conducts investigations of potentially criminal cases with a view to criminal prosecution on malicious activity in the financial instrument trading sector, including fraudulent securities reports (fraudulent accounting) and insider trading, as well as market manipulation and other fraudulent means.

As part of the process of criminal investigation, SESC uses its own methods to identify and analyze relevant bank accounts or securities accounts that may be used in unfair trading. In addition, utilization of STRs helps to put the criminal cases in its proper light.

SESC also utilizes foreign FIU information provided through JAFIC at its request for investigations of its own.
# Crackdown on Money Laundering

In order to take effective anti-money laundering (AML) measures, it is essential to understand the scale and modus operandi of money laundering.

In Japan, money laundering is criminalized as follows: the control of management of enterprises of legal persons and other entities through illicit proceeds (Article 9), the concealment of criminal proceeds (Article 10) and the receipt of criminal proceeds (Article 11) which are all stipulated in the Act on Punishment of Organized Crimes, and also the concealment of drug-related criminal proceeds (Article 6) and the receipt of drug-related criminal proceeds (Article 7) both stipulated in the Anti-Drug Special Provisions Law. They include typical money laundering activities such as transferring criminal proceeds to a certain place so that these proceeds would not be traceable and depositing criminal proceeds in a bank account under the name of another person, although all the activities to transfer criminal proceeds are not yet covered.

In addition, penalties for the violation of supervision mechanisms issued by competent administrative authorities to specified business operators and penalties for the transfer or receiving of bank account passbooks are stipulated in the Act on Prevention of Transfer of Criminal Proceeds.

The AML achievements in Japan can be grasped to some extent by looking into the number of cleared cases related to money laundering and the amounts of criminal proceeds confiscated.

## Section 1 Arrests made for the violation of the Act on Prevention of Transfer of Criminal Proceeds in 2013

The Act on Prevention of Transfer of Criminal Proceeds stipulates penalties to ensure the effectiveness of supervisory mechanisms put in place by the competent administrative authorities over specified business operators and penalties on the trade of savings passbooks, and the police is enhancing its efforts to crack down on such practices. Numerous money laundering crimes involve the illicit use of savings passbooks in the name of another party. The number of arrests made for the illicit transfer of savings passbooks in 2013 was 1,605 (see Table 5-1).
Table 5-1 Number of punishments made under the Act on Prevention of Transfer of Criminal Proceeds

Year	2009	2010	2011	2012	2013
Transfer etc. of savings passbooks (business)	68	30	18	32	18
Transfer etc. of savings passbooks (non-business)	851	727	1,221	1,487	1,570
Soliciting	25	8	22	24	17
Violation of rectification orders	0	0	0	1	0
Total	944	765	1,261	1,544	1,605

Note: For actions committed before March 1, 2008, the amended Customer Identification Act applies.

## Section 2 Cleared Cases of Money Laundering in 2013

## Paragraph 1 Cleared Cases of Money Laundering under the Act on Punishment of Organized Crimes

## 1 Number of Cleared Cases

There were 272 cases cleared of money laundering under the Act on Punishment of Organized Crimes in 2013, consisting of 2 cases of management control through illicit proceeds, 171 cases of concealment of criminal proceeds (note), and 99 cases of receipt of criminal proceeds. (See Table 5-2)

(note) Criminal proceeds means proceeds from criminal activities, assets deriving from criminal proceeds, or assets mixed with other assets.

Table 5-2 Number of Arrests Made for Money Laundering under the Act on Punishment of Organized Crimes

Year Category	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Management Control through Illicit Proceeds (Article 9)	0 (0)	0 (0)	1 (0)	0 (0)	1 (1)	0 (0)	1 (0)	1 (0)	0 (0)	2 (0)
Concealment of Criminal Proceeds etc. (Article 10)	50 (29)	65 (21)	91 (18)	137 (35)	134 (41)	172 (49)	139 (46)	150 (43)	158 (27)	171 (35)
Receipt of Criminal Proceeds etc. (Article 11)	15 (11)	42 (27)	42 (35)	40 (25)	38 (21)	54 (41)	65 (44)	92 (38)	80 (28)	99 (40)
Total	65 (40)	107 (48)	134 (53)	177 (60)	173 (63)	226 (90)	205 (90)	243 (81)	238 (55)	272 (75)

Note: Each number in brackets represents the number of cases conducted by Boryokudan gangsters.

Looking at the types of money laundering crimes under the Act on Punishment of Organized
Crimes, the number of theft cases was the highest at 74, followed by 65 cases of fraud, 29 cases of prostitution offences, 24 cases of illegal loaning and 14 cases of distribution of obscene material.

## 2 Modus Operandi of Money Laundering observed in Cleared Cases

## (1) Management control with funds of illicit proceeds

All cases of management control through illicit proceeds in 2013 had fraud as the predicate offense. In these cases, offenders obtained the position of an originator when establishing stock companies with illicit proceeds (Note) gained through fraud and appointed themselves or people under their control as board directors of the companies by exercising their authority as the originator.

(Note) “Illicit proceeds” refers to proceeds from criminal activities, including drug-related ones, assets deriving therefrom and such assets mixed with other assets (Article 2(2)(i) and (iii) and Article 9 of the Act on Punishment of Organized Crimes and each item of Article 2(2) of the Anti-Drug Special Provisions Law.

## 【Case 1】Management control with funds of illegal proceeds generated through a fraudulent investment

Unemployed men obtained the position of an originator by making payments for shares issued at the time of the establishment of a stock company using ¥1 million yen out of some 350 million yen in cash defrauded on the pretext of investments in fictitious investment funds and appointed themselves as the representative board directors at the time of establishment by exercising their position as the originator. Subsequently, they implemented registration procedures for the company, thereby putting its establishment into effect, and appointed themselves as the representative board director. As a result, they were arrested for violating the Act on Punishment of Organized Crimes (management control through illicit proceeds) (Gunma, in August)

## (2) Examples of Concealment of Criminal Proceeds

Instances of concealment of criminal proceeds in 2013 consisted largely of cases in which offenders attempted to transfer funds to bank accounts under the name of other persons. This is a major form of infrastructure used in money-laundering crimes. In addition, criminals use various methods to keep investigative authorities off the track, including selling stolen items using a false name, disguising reasons with respect to acquiring criminal proceeds, and more.
## 【Case 2】Concealment of criminal proceeds related to the violation of the Money Lending Control Act

A few women engaging in loan sharking made borrowers remit a total of around ¥225 million in repayment to multiple accounts opened in the names of other parties. They were arrested for the violation of the Act on Punishment of Organized Crimes (conceal-ment of criminal proceeds, etc.) (lwate, in March)

## 【Case 3】 Concealment of criminal proceeds related to a grand theft case

A company employee and his wife stole around ¥16 million in cash from a season ticket counter of a railway station and concealed around ¥9.7 million of the total by burying the money underground in a forest. They were arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds)(Saitama, in September).

(Hyogo, in August)

[Case 4] Concealment of criminal proceeds related to a murder-rubbery case abroad

An unemployed man murdered a woman and stole around Hong Kong $14 million in cash in the Special Administrative Region of Macau and arranged an acquaintance who was unfamiliar with the situation to exchange around HKD140,000 of the total into Japanese currency at a financial institution in Japan in the name of the said acquaintance. The offender was arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds) (Saitama, in September).

## (3) Examples of Receipt of Criminal Proceeds etc

In the cases on receipt of criminal proceeds which were cleared in 2013, there are cases where offenders received criminal proceeds derived from fraud, prostitution and other crimes, which shows these criminal proceeds can be transferred to other individuals in diverse ways.

## 【Case 5】Receipt of stolen goods with compensation and receipt of criminal proceeds related to bank account trading

A man engaging in a civil engineering job solicited an acquaintance to purchase deposit passbooks. The acquaintance and others purchased several deposit passbooks defrauded from financial institutions for ¥60,000. The offenders were arrested on charges of purchasing stolen goods with compensation and for violating the Act on Punishment of Organized Crimes(receipt of criminal proceeds) (Nara, in January)
## 【Case 6】Receipt of criminal proceeds related to the violation of the Anti-Prostitution Act

A man engaging in a consulting job received around ¥3.3 million in cash from a man managing a sex parlor in the knowledge that the funds were proceeds from prostitution. The offender was arrested for violating the Act on Punishment of Organized Crimes (receipt of criminal proceeds) (Ibaraki, in October)

## 3 Money Laundering Cases related to Boryokudan (General name for Japanese gangster organizations)

There were a total of 75 cases cleared of money laundering related to Boryokudan (including Boryokudan members, associates, and other related parties) in 2013, consisting of 35 cases of concealment of criminal proceeds, and 40 cases of receipt of criminal proceeds. This number accounts for 27.6% of all cases cleared of money laundering under the Act on Punishment of Organized Crimes in 2013.

In each type of cases of money laundering related to Boryokudan, there were 19 fraud and prostitution cases each, 7 loan-sharking cases and 6 habitual gambling and running a gambling place for profit cases. This indicates that Boryokudan commit money laundering by a variety of predicate offences.

## (1) Examples of Means of Concealment of Criminal Proceeds by Boryokudan

Looking at the cases of concealment of criminal proceeds by Boryokudan in 2013, there were 9 fraud cases, 6 loan-sharking cases and 5 theft cases.

The most significant modus operandi is that criminal proceeds obtained by fraud or loan-sharking are concealed in a bank account opened in another party’s name.

## 【Case 7】 Concealment of criminal proceeds related to the violation of the Moneylending Control Act by members of Boryokudan, Godaime Kudo-kai)

Members of the Godaime Kudo-kai who were engaging in loan sharking arranged for borrowers to remit a total of around ¥5.8 million in repayment to multiple bank accounts made in the name of other parties. They were arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds)

(Fukuoka, in February)

## 【Case 8】 Concealment of criminal proceeds related to the violation of the Moneylend-

ing Control Act by associates of Boryokudan, Rokudaime Yamaguchi-gumi Associates of Rokudaime Yamaguchi-gumi who were engaging in loan sharking commissioned a bank to collect bills received from borrowers as repayments and arranged for the remittance of a total of around ¥1.4 million in cash to multiple bank accounts made in the name of other parties. The offenders were arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds) (Osaka, in August)