order to ensure specified business operators take appropriate actions, and 2) to promptly and appropriately collect, arrange and analyze information on criminal proceeds including information on suspicious transactions reported by specified business operators so that such information can be effectively utilized in criminal investigation and related international cooperation. Government organs that perform collection, arrangement and analysis of suspicious transaction reports and disseminate them to investigative authorities are generally called FIUs. Japanese FIU used to belong to the Financial Services Agency. Under the new law, the National Public Safety Commission took over this function from the Financial Services Agency, in connection with the extension of the scope of specified business operators. For this purpose, the Japan Financial Intelligence Center (JAFIC) was established in the National Police Agency, in charge of police administration under the control of the National Public Safety Commission, on April 1, 2007. The outline of the structure of JAFIC will be detailed in Chapter 3.

Figure 2-2 Responsibilities of the National Public Safety Commission (Article 3 of the Act on Prevention of Transfer of Criminal Proceeds)

Support such as provision of information on modus operandi, contributing to the implementation of measures by specified business operators, and enhancement of public awareness

Collection, arrangement and analysis of information on criminal proceeds contributing to criminal investigation and international exchange of information

## 5 Measures by Specified Business Operator

By the act, specified business operator is obliged to conduct the following:

## (1) Customer Identification (Article 4)

In conducting a certain transaction, verify identification data of a customer such as the name and domicile by asking for his/her driver's license or other identification documents;

## (2) Preparation of customer identification records (Article 6)

Prepare and keep the record of identification data and measures taken for customer identification etc. for seven years from the day when the transactions were completed or terminated;

### (3) Preparation of transaction records etc. (Article 7)

Prepare and keep the record of the date and contents etc. of transactions concerned for seven years;

## (4) Reporting of suspicious transactions (Article 9)

Report transactions that are suspected of being related to criminal proceeds to the competent authority, except for judicial scriveners, certified administrative procedures specialists, certified public accountants, certified public tax accountants and lawyers;

## (5) Notification pertaining to foreign exchange transactions (Article 10)

In conducting a cross-border payment, notify the receiving institutions of certain items such as the name and the account number. This article is applied only to financial institutions etc., that can conduct exchange transactions;

## (6) Measures by lawyers (Article 8)

It is established by special provision, that lawyers shall conduct measures relevant to those described in (1) through (3) above based on The Rule of the Japan Federation of Bar Associations in line with cases of judicial scrivener etc.