# Section7 Efforts of Specified Business Operators

## 1 Efforts of Banking Industry

The "Japanese Bankers Association" (hereinafter referred to as "JBA"), of which most of the banks operating in Japan are members, established the "Working Committee on Money Laundering Issues" within JBA in 1990 and, since then, has been taking anti-money laundering and combating the financing of terrorism (AML/CFT) measures, such as preparing and providing notices on items to keep in mind regarding the procedures of customer due diligence and suspicious transaction reporting, preparing and distributing seminar handbooks to its members, giving seminars for its members, and so on.

Furthermore, JBA prepares leaflets, posters or the like to be provided to customers regarding customer due diligence procedure etc. In addition, JBA is promoting organizational measures on issues related to money laundering and terrorist financing inside and outside of Japan by following, at all times, the development of AML and CFT measures at FATF, exchanging and sharing of information constantly with foreign bankers associations or the like, making responses to FATF mutual evaluations of Japan, and so forth. As an example of JBA playing a leading part in the efforts of the banking industry, it incorporated provisions on compliance including money laundering prevention and confrontation with antisocial forces into the JBA "Code of Conduct," (revised in November, 2005), and prompted its members to put such into practice.

## 2 Efforts of Securities Industry

The securities industry has made efforts to eliminate Boryokudan, from securities transactions and to promote anti-money laundering measures.

The Japan Securities Dealers Association and each stock exchange, together with relevant authorities including the Financial Services Agency and the National Police Agency, established the “Securities Safety Liaison Committee” and the “Securities Safety Liaison Committee Working-level Conference” in November 2006 to examine further measures to eliminate the Boryokudan from the industry. In July, 2007, “Elimination of Antisocial Forces from Securities Transactions and the Securities Market” was published as an interim report of the examination results of abovementioned working-level conference. Likewise, in February 2008, the “Concept of Reporting Suspicious Transactions” was summarized to ensure effective reporting, clarifying the need to further strengthen countermeasures against money laundering, such as the prompt reporting of suspicious transactions.

Moreover, relevant organizations such as securities companies, the Japan Securities Dealers Association, Stock Exchange, Financial Bureau, Prefectural Police, the prefectural 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 the Boryokudan from the industry and of the prevention of money laundering, through information exchange of the field level and seminars.

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

Moreover, Japan Securities Dealers Association established the “Rules regarding Severing Relationships with Anti-social Forces” in May 2010, and obligated each member to 1) introduce articles regarding Boryokudan elimination in their transaction clauses etc, 2) screen new and existing clients, and 3) introduce articles regarding assurance by customer, “that he/she is not an antisocial force” when opening securities account.