Silviase/jgov_v1.4_full_ann huggingface dataset:
[Case 9] Concealment of criminal proceeds related to the violation of the Worker Dispatching Act by senior members of Boryokudan, Rokudaime Yamaguchi-gumi

Senior members of Rokudaime Yamaguchi-gumi who were engaging in the temporary staffing business sent temporary workers to do construction work, which such workers are not allowed to do, and arranged for them to remit a total of around ¥20.5 million in wages to a bank account made in the name of another party. The offenders were arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds) (Shizuoka, in October)

## (2) Examples of Receipt of Criminal Proceeds related to Boryokudan

Cleared cases of receipt of criminal proceeds by Boryokudan in 2013 consisted of 16 prostitution cases, 10 fraud cases and 5 habitual gambling and running a gambling place for profit cases.

Cases of receipt of criminal proceeds included protection money and a contribution to the gangster organizations, providing an indication of how Boryokudan earn profit through the power or force of the organization.

[Case 10] Receipt of criminal proceeds, etc. related to the violation of the Anti-Prostitution Act by senior members of Boryokudan, Rokudaime Yamaguchi-gumi

Senior members of Rokudaime Yamaguchi-gumi received a total of around ¥16 million in contributions from a managed prostitution organization in the knowledge that the funds were proceeds from underage prostitution. The offenders were arrested for violating the Act on Punishment of Organized Crimes (receipt of criminal proceeds, etc.)

(Fukuoka and Oita, in May)

## 4 Money Laundering conducted by Foreign Visitors to Japan

In cleared cases of money laundering under the Act on Punishment of Organized Crimes in 2013, there were 21 cases related to foreign visitors to Japan, representing 7.7% of all cases.

Looking at these 21 cases, there were 11 cases of concealment of criminal proceeds and 10 cases of receipt of criminal proceeds. Looking at the predicate offences, there were 6 cases of computer fraud, and 4 cases each of fraud and counterfeiting of brands. It can be seen that criminals of foreign nationalities operating in Japan use various methods to carry out money laundering, including the use of bank accounts in Japan made in the names of other parties.
[Case 11] Concealment of criminal proceeds related to computer fraud

A man from the Republic of Sierra Leone who is a spouse of a Japanese national and who manages a restaurant, together with others, used a credit card of a drunken customer of the restaurant to make payments for falsified eating and drinking expenses and arranged for the remittance of around ¥360,000 in revenue to a bank account made in the name of another party via a credit card company. The offenders were arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds)

(Tokyo Metropolitan Police Department, in May)

## Paragraph 2 Cleared Cases of Money Laundering under the Anti-Drug Special Provisions Law

The total number of cleared cases of money laundering under the Anti-Drug Special Provisions Law in 2013 was 10 (see Table 5-3).

In some cases, money laundering is artfully committed for funds acquired through drug offences such as smuggling of stimulants, in which purchasers' payments are deposited into a bank account under the name of another party (Case 12)

Note: Drug criminal proceeds are comprised of drug criminal proceeds and proceeds stemming from drug offense proceeds, or a mix of said proceeds and other funds. (Article2, Paragraph 3 to 5 of the Anti-Drug Special Provisions Law).

Table 5-3 Number of arrests made for money laundering under the Anti-Drug Special Provisions Law

Year Category	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Concealment of drug-related criminal proceeds etc. (Article 6)	5 (3)	3 (2)	5 (3)	5 (4)	10 (4)	5 (1)	8 (4)	8 (3)	8 (2)	6 (6)
Receipt of drug-related criminal proceeds etc. (Article 7)	0 (0)	2 (2)	5 (2)	2 (1)	2 (1)	5 (3)	1 (1)	0 (0)	3 (2)	4 (4)
Total	5 (3)	5 (4)	10 (5)	7 (5)	12 (5)	10 (4)	9 (5)	8 (3)	11 (4)	10 (10)

Note: Each number in brackets represents the number of cases conducted by Boryokudan gangsters.
## 【Case 12】Concealment of criminal proceeds related to broad-area trafficking of stimulants by persons associated with Boryokudan, Soai-kai

A man who is a trafficker of stimulants and who is related to Soai-kai engaged in trafficking of stimulants using a door-to-door parcel delivery service. He arranged for a customer to remit around ¥3.1 million in payment for stimulants to a bank account made in the name of another party. He was arrested for violating the Anti-Drug Special Provisions Law (concealment of drug-related criminal proceeds) (Okayama, in January)

## Section 3 Temporary Restraining Order for Confiscation of Criminal Proceeds before Institution of Prosecution in 2013

In order to prevent criminal proceeds from being used to maintain and expand the powers of criminal organizations and being used to invest in future criminal activities, it is important to deprive them. Confiscation and collection of equivalent value of criminal proceeds are conducted based on the court order. To ensure that criminal proceeds are not concealed or spent before the order is given, the police use the system of "Temporary Restraining Order for Confiscation before Institution of Prosecution" (hereafter referred as Temporary Restraining Order) stipulated in the Act on Punishment of Organized Crimes and the Anti-Drug Special Provisions Law in order to confiscate criminal proceeds effectively.

## Paragraph 1 Temporary Restraining Order under the Act on Punishment of Organized Crimes

The number of "Temporary Restraining Orders" issued under the Act on Punishment of Organized Crimes in 2013 (on the request of judicial police officers) was 160, the largest number since the enforcement of the Act in 2000 (see Table 5-4).

A breakdown of this figure by type of offence includes 37 cases of unlicensed entertainment business, 32 cases of prostitution offences, 25 cases of habitual gambling and running a gambling place for profit, 12 cases of fraud, and 11 cases of loan-sharking offences.
Table 5-4 Numbers of Temporary Restraining Orders Issued and Amounts Confiscated Before Prosecution under the Act on Punishment of Organized Crimes

2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
7(5)	8(0)	9(3)	21(7)	44(21)	54(23)	70(36)	101(30)	148(39)	160(54)

Note 1: Only the cases requested by judicial police officers.

Note 2: Each number in brackets represents the number of cases related to Boryokudan gangsters.

Year	Total amount of credit	Others
2004	¥12,079,511
2005	¥564,953,561
2006	¥52,680,512
2007	¥268,801,546
2008	¥314,239,728
2009	¥270,188,760	Foreign currency US$750
2010	¥160,597,150	Land 605.95m², Building 1, Passenger vehicles 2, Necklace 1
2011	¥134,764,985
2012	¥3,380,337,707	Light vehicle 1, Passenger vehicle 1, Condominium 1 unit
2013	¥362,399,577	Land 522.64m², Passenger vehicle 1

From 2007 onward, the number of the Orders has increased substantially year by year. One of the reasons for this trend is that "Confiscation and Collection of Equivalent Value of the Crime Victim Property" related to crimes such as fraud, loan sharking offences and theft, which had not been subjects to be confiscated or collected, are now available due to the amendment of the Act on Punishment of Organized Crimes in December 2006. Another reason for the trend is that unauthorized adult entertainment business and unlicensed banking business were added to the predicate offences and the range of assets subject to confiscation increased in July 2011. Therefore the opportunities to apply the procedures for "Temporary Restraining Order" specified in the Act are expected to increase in the future. The system of "Temporary Restraining Orders" under the Act on Punishment of Organized Crimes which allows the confiscation of criminal proceeds is an effective measure. The police, in good coordination with the public prosecutor's office, will use the system effectively and prevent criminal organizations from using criminal proceeds.

The police will actively make use of “Temporary Restraining Orders” in order to ensure the enforcement of confiscation orders for the purpose of the recovery of crime victim property by the public prosecutor under the “Act on the Provision of Compensation for Crime Victim Property etc.”

"Temporary Restraining Orders" issued in 2013 include numerous orders against unlicensed entertainment business. Orders were also issued for pecuniary claims for the following,
which under the Act on Punishment of Organized Crime are subject to confiscation: claims on deposits, rights to claim unpaid funds, and claims on advance payment on behalf of a third party.

#### [Case 13] Temporary restraining order against proceeds related to the violation of the Anti-Prostitution Act (provision of funds, etc.) and violation of the Act on Punishment of Organized Crimes(receipt of criminal proceeds, etc.)

A company executive provided a building to a man managing a massage parlor and received around ¥33 million on the pretext of rents in the knowledge that the funds were proceeds from prostitution. As a result, a temporary restraining order was issued against around ¥4.3 million in deposits, which was part of the proceeds deposited in the man's bank account. (Gifu, in April)

## 【Case 14】Temporary restraining order against embezzled money in a corporate embezzlement case

A male company executive who was a former senior member of Boryokudan, Godaime Yamaguchi-gumi and who was the representative of a non-profit organization (NPO) providing meals and boarding facilities to persons receiving public assistance, in conspiracy with others, including his wife, embezzled around ¥4.2 million in deposits entrusted by residents of a boarding facility managed by a company commissioned by the NPO and deposited parts of the embezzled funds into his wife's bank account. As a result a temporary restraining order was issued against around ¥400,000 of the deposits.

(Saitama, in May)
## 【Case 15】Temporary restraining order against proceeds gained in a case of violation of the Pharmaceutical Affairs Act (sale of unapproved pharmaceuticals on a regular basis)

A self-employed man sold an unapproved pharmaceutical to treat erectile dysfunction via the Internet without obtaining permission for opening a pharmacy or selling pharmaceuticals. As a result, a temporary restraining order was issued for around ¥10.7 million in deposits which were derived from the sale of the unapproved pharmaceutical, and ¥1 million in claims for the payments were to be made by an online shopping company.

## 【Case 16】Temporary restraining order against revenue related to the violation of the Adult Entertainment Business Act (unlicensed operation)

Men managing an exclusive bar who were former senior members of Rokudaime Yamaguchi-gumi made female employees entertain guests without obtaining a license. As a result, a temporary restraining order was issued for around ¥900,000 in cash, which was revenue from the bar, and around ¥3 million in deposits deposited in the bar's bank account.

(Aichi, in August)

## Paragraph 2 Temporary Restraining Order under the Anti-Drug Special Provisions Law

The number of Temporary Restraining Orders issued under the Anti-Drug Special Provisions Law in 2013 was 4 (see Table 5-5).

For example, a Temporary Restraining Order was issued against proceeds (cash and claim on deposits) obtained from trafficking of stimulant drugs which were sold illegally (Case 17).
Table 5-5 Number of Temporary Restraining Orders Issued and Amounts Confiscated Before Prosecution under the Anti-Drug Special Provisions Law

2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
5(2)	8(5)	3(2)	4(3)	7(5)	8(5)	13(7)	14(4)	16(8)	4(4)

Note 1: Only the cases requested by judicial police officers.

Note 2: Each number in brackets represents the number of cases related to Boryokudan gangsters.

Year	Total amount of credit	Others
2004	¥67,440,983
2005	¥92,619,024
2006	¥10,432,915
2007	¥45,032,829
2008	¥23,344,267
2009	¥29,215,674
2010	¥33,591,421	Traveler's check US$11,500, Necklace 1, Watches 2, Passenger vehicle 1
2011	¥11,678,611	Foreign currency US$5,000, Passenger vehicles 3, Key 1
2012	¥30,026,428
2013	¥19,985,691

### 【Case 17】Temporary restraining order against drug-related criminal proceeds, etc., related to organized trafficking of stimulants

Based on information provided by an abuser of stimulants, a stimulant trafficking organization comprised of members of the Inagawa-kai gangster organization was identified and suspects were arrested for violating the Stimulants Control Act (sale for profit, etc.). As a result, a temporary restraining order was issued for around ¥1.3 million in cash gained by the suspects from trafficking of stimulants and around ¥80,000 in deposits.

(Hokkaido, in March)

## Section 4 Application of Provisions of Confiscation and Collection of Equivalent Value in 2012

## Paragraph 1 Application of Provisions of Confiscation and Collection of Equivalent Value under the Act on Punishment of Organized Crimes

The details of application of Provisions of Confiscation and Collection of Equivalent Value under the Act on Punishment of Organized Crimes in general court procedures (first trials) are shown in the following Table 5-6.
Table 5-6 Statistics of the application of Provisions of Confiscation and Collection of Equivalent Value under the Act on Punishment of Organized Crimes in general first trials

Year	Confiscation	Collection	Total
Persons	Amount	Persons	Amount	Persons	Amount
2008	40	335,721	79	560,791	119	896,512
2009	98	105,774	129	3,414,672	227	3,520,446
2010	54	81,136	101	1,445,143	155	1,526,280
2011	93	60,899	93	819,683	186	880,582
2012	88	115,756	56	924,627	144	1,040,384

Note 1: Data is based on the White Paper on Crime.

Note 2: Units are yen in thousands (amounts less than one thousand yen are rounded down).

Note 3: When Confiscations and Collections of Equivalent Value were ordered in duplicate for accomplices, the amount was calculated excluding the duplicate amount.

Note 4: Foreign currencies were exchanged into Japanese yen at the exchange rate of the date of the ruling.

## Paragraph 2 Application of Provisions of Confiscation and Collection of Equivalent Value under the Anti-Drug Special Provisions Law

The details of application of Provisions of Confiscation and Collection of Equivalent Value under the Anti-Drug Special Provisions Law in general court procedures (first trials) are shown in the following Table 5-7.

Table 5-7 Statistics of the application of Provisions of Confiscation and Collection of Equivalent Value under the Anti-Drug Special Provisions Law in general first trials

Year	Confiscation	Collection	Total
Persons	Amount	Persons	Amount	Persons	Amount
2008	61	93,695	362	1,391,545	423	1,485,240
2009	68	34,087	350	1,428,732	418	1,462,820
2010	46	27,660	328	1,260,916	374	1,288,576
2011	69	21,277	273	850,882	342	872,160
2012	63	20,852	241	361,862	304	382,714

Note 1: Data is based on the White Paper on Crime.

Note 2: Units are yen in thousands (amounts less than one thousand yen are rounded down).

Note 3: When Confiscations and Collections of Equivalent Value were ordered in duplicate for accomplices, the amount was calculated excluding the duplicate amount.

Note 4: Foreign currencies were exchanged into Japanese yen at the exchange rate of the date of the ruling.

## Section 5 Cases of Cross-Border Money Laundering

By moving funds between bank accounts of several different financial institutions, offenders create the appearance that proceeds from crimes were obtained fairly. It is common practice for criminals to take steps across borders to conceal the true origin of funds and the true owner.
[Case 18] Concealment of criminal proceeds, etc., related to an international large-scale fraud scheme operated by a Boryokudan crime syndicate and a Nigerian crime syndicate

A Nigerian crime syndicate engaged in a fraud scheme using forged cheques in the United States, in which cheated people remitted funds into accounts of members of a Boryokudan crime syndicate. When completing the withdrawal procedures, the Boryokudan members submitted transaction sheets with the false statement that the funds were paid for products, thereby disguising the defrauded funds as legitimately-earned business profits. The Boryokudan members and Nigerians involved were arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds).

The funds defrauded by the Nigerian crime syndicate were transferred via the Boryoku-dan crime syndicate to a Nigerian who was a resident in Japan and who undertook the remittance of funds out of Japan. The Nigerian remitted a total of around ¥600 million in 45 installments from Japan to Nigeria through such means as remittance from an account opened in Japan to an account at an overseas bank.

(Niigata/Metropolitan Police Department, in May)
# Promotion of International Cooperation

As globalization of economy and financial services is remarkably spreading today, it has become quite easier to move money anytime and anywhere across borders. Consequently, financial services are likely to be exploited by criminal or terrorist organizations in an attempt to evade investigations of authorities in a way hiding criminal proceeds or terrorist funds through, among others, cross-border wire transactions.

To make matters worse, jurisdictions with non or insufficient compliance with global the AML/CFT regime would become a loophole and provide significant opportunity to those who are trying to commit money laundering or terrorist financing (ML/TF).

Taking these situations into consideration, it is essential for the international community to cooperate closely with each other in fighting against global scale ML/TF. In particular, in order to detect any illicit money and prevent the misuse of the international financial system, competent government authorities of all jurisdictions playing any role in AML/CFT have to share the latest trends involving ML/TF or anything undermining our efforts in timely manner, and take effective measures against ML/TF all together.

## Section 1 Activities of International Institutions

## Paragraph 1 FATF

## 1 FATF

The FATF is an intergovernmental body established following the “Economic Declaration” of the 1989 Arche Summit Communiqué to promote international cooperation on AML measures. After the September 11th US terrorist attacks of 2001, the FATF has also taken the initiative in the promotion of international CFT measures.

The FATF has 34 member jurisdictions (including Japan) and 2 international institutions as of December 2013.

## 2 Activities

## (1) Main Activities

1. Formulation and review of international standards in the "FATF Recommendations" concerning AML/CFT measures

2. Monitoring the status of compliance with the FATF Recommendations in the FATF member jurisdictions (Mutual Evaluations)

3. Promotion of compliance with the FATF Recommendations to non-member jurisdictions
4. Study on trends and modus operandi of ML/TF.

(2) FATF Recommendations

a) FATF 40 Recommendations

In 1990, the FATF devised standards in “the 40 Recommendations”, to be applied by each jurisdiction in the field of law enforcement, criminal justice, and financial regulations. In 1996, the FATF revised the Recommendations to make the Suspicious Transaction Report obligatory, and for other matters.

In June 2003, the FATF revised its recommendations to counter increasing sophistication and complexity of money laundering.

The “40 Recommendations” contained following additional elements (see Figure 6-1).

○Clear definition and expansion of scope of money laundering offense

○Undertaking customer due diligence including customer identification

Measures to prevent unlawful use of legal persons in relation to ML

○Application of preventive measures to designated non-financial businesses (real estate agents, dealers in precious metals and stones) and professions (lawyers, accountants and other professions)

○National and international cooperation among FlUs, supervisory authorities, law enforcement authorities and other governmental organizations handling issues related to money laundering

b) FATF 9 Special Recommendations

In October 2001, a month after the September 11th US terrorist attacks, the FATF held an Emergency Session. The agreement of the session was reflected in “the Special Recommendations.” Since the FATF added a new recommendation on “cash couriers” to this in October 2004, it is now called “the 9 Special Recommendations on Terrorist Financing.” Main components of the 9 Special Recommendations are as follows (See Table 6-1):

○Criminalization of the financing of terrorism

○Requiring suspicious transaction reporting related to terrorism

○Requiring financial institutions to include accurate and meaningful originator information (name, address and account number) on fund transfers etc.

c) The new "40 Recommendations"

The FATF had considered revision of its 40 Recommendations and 9 Special Recommendations in preparation for its fourth Mutual Evaluation, and integrated these two Recommendations into its new "40 Recommendations" in February 2012.

The major points which are newly included to the new “40 Recommendations” are summarized as follows (see Table 6-2).

○Enhancing a risk-based approach

○Boosting transparency of corporations, entrustment, and wire transfer systems

Enhancing capacity of the relevant administrative authorities and bolstering a system of international cooperation on countermeasures against ML/TF.

## (3) Mutual Evaluation

The FATF employs a peer review approach to encourage its members to implement the Recommendations. Member jurisdictions are evaluated by other members from various