Silviase/jgov_v1.4_full_ann huggingface dataset:
In 2009, regarding strange or unreasonable money transfers to and from foreign countries, which analyses on information of suspicious transaction have revealed, JAfic made 51 requests for further analysis to relevant foreign FlUs for information, such as, the flow of funds transferred out of Japan, the source of remittance from abroad, etc.

JAFIC has always successfully and rapidly obtained information that was requested, as well as such useful information as foreign entities' involvement, etc. from the requested FIUs.

Furthermore, in 2009 JAFIC provided foreign FIUs with information on suspicious transactions which it finds will contribute to the performance of their duties in 10 cases. JAFIC received 68 cases of information provided by foreign FIUs during the year.

Fig.5-1 Exchange of STRs with Foreign FLUs

For such a smooth exchange of information, JAFIC actively carries out various activities such as learning how to analyze information from foreign FIUs and how to review the status of funds information by foreign investigation agencies. JAFIC has also participated in meaningful discussions on the activation of the exchange of information from now, by visiting FIUs in countries and jurisdictions where there is a need for close coordination, especially in countermeasures against money laundering and terrorist financing, and countries and jurisdictions where there is no framework for the exchange of information.

The following achievements were made in 2009;

March Discussion with Cayman Islands FIU (CAYFIN) (Cayman Islands)

Discussion with British Virgin Islands FIU (FIA) (British Virgin Islands)

September Information exchange with the U.K. FIU (SOCA) (London)

Discussion with Jersey FIU (FCU) (Jersey)

Discussion with Isle of Man FIU (FCU) (Isle of Man)

Discussion with Guernsey FIU (FIS) (Guernsey)

Participation in South East Asia Financial Investigation Seminar held by Hong Kong FIU (JFIU) (Hong Kong)

October Individual information exchange with Hong Kong Flu, Hong Kong police, and Australia Flu (AUSTRAC) at East Asia Regional Organized Crime Countermeasure Conference (Tokyo)
November Information exchange with Qatar FIU (QFIU) (Tokyo)

Discussion with Mexico FIU (Mexico-FIU) (Mexico City)

December Information exchange with Korea FIU (KoFIU) (Seoul)

Information exchange with the U.S. FIU (FinCEN) (Washington D.C)

Note: locations of the meetings are in parentheses ( )

Discussion with Cayman Islands FIU

Information exchange with the U.K. FIU

## Section4 FATF Mutual Evaluation of Japan

## Paragraph1 Implementation of the Third FATF Mutual Evaluation of Japan

The FATF Mutual Evaluation of Japan was conducted three times; the first and second round was in the past, and the third round was in late 2007 to late 2008 with JAFIC and related government agencies responding. The mainly process and procedure of the FATF Mutual Evaluation for assessed countries are: 1. response to the Mutual Evaluation Questionnaire (MEQ), 2. On-site visit to directly confirm the actual status by assessors, 3. discussion at the FATF Plenary meeting. Japan provided the response to the MEQ in January 2008, and underwent on-site visit in Tokyo and Osaka in March of the same year. In October 2008, at the Plenary meeting in Brazil, the third round of Mutual Evaluations for Japan was concluded. Since all Mutual Evaluation Reports (MER) and executive summaries are to be published, the results of the evaluation of Japan are also published on the FATF website (http://www.fatf-gafi.org/) and the Ministry of Finance website (http://www.mof.go.jp/jouhou/kokkin/fatfhoudou_201030.htm).

## Paragraph2 Outline of the Results

For each of 49 Recommendations there are four possible levels of compliance, C (Compliant), LC (Largely Compliant), PC (Partially Compliant), NC (Non-Compliant). The results of Japan are shown in Table 5-1, C was received for 4 recommendations, LC for 19, PC for 15, and NC for 10 (Furthermore, Japan has one recommendation that did not apply (N/A)).

For the recommendation regarding the FIU (Financial Intelligence Unit, Recommendation 26), the need to further strengthen personnel was pointed out, but also was positively evaluated for the transfer of FIU functions from the Financial Services Agency to the National Public Safety Commission / National Police Agency. (Rating: LC).

For the recommendation regarding customer due diligence by financial institutions (Recommendation 5), assessors pointed out that the measures such as certification of beneficial owner and purpose of transaction, and ongoing customer due diligence, should be directly regulated by law or the like, and
the additional customer identification should be introduced on identifying without photograph (Rating: NC).

## Paragraph3 Plans for the Future Schedule

## 1 Future Procedures

For the procedures regulated by FATF, every 2 years after the discussion of their MER, assessed countries must provide an update to the FATF Secretariat describing the general statistics and new measures that have been adopted and implemented to deal with the identified deficiencies in relation to any of the FATF Recommendations that are rated PC or NC.

Also, Regular Follow up procedure will apply to assessed countries where six “core” Recommendations (Recommendation 1, 5, 10, 13 or Special Recommendation II or IV) are rated either PC or NC, and the assessed countries would report back to the Plenary and provide information on the actions it has or is taking to address the factors / deficiencies underlying any of the FATF Recommendations that are rated PC or NC two years after the MER is discussed. Where the Plenary agrees that the assessed country has implemented 16 Recommendations (core Recommendations, Recommendation 3, 4, 23, 26, 35, 36, 40, Special Recommendation I, III, and V) at a level essentially equivalent to a C or LC, the country will be removed from the follow-up process. FATF members are encouraged to make necessary improvements and to seek removal from the follow-up process within three years after the adoption of the MER.

Regular Follow up procedure applies to Japan because of the Recommendation 5 rated NC and Special Recommendation II rated PC. Japan will report back to the Plenary and provide information on the actions it has or is taking to address the factors / deficiencies underlying Recommendations rated PC and NC in 2010, two years after the Mutual Evaluation.

## 2 Establishment of the Expert Forum

Taking into account the indications in Third FATF Mutual Evaluation on Japan, in reference to how customer due diligence contributes to money laundering countermeasures in Japan, the National Public Safety Commission/ National Police Agency in cooperation with concerned ministries and agencies established the “Council on customer due diligence measures by businesses operators for anti money laundering” with academic experts and practicing professionals as its committee in order to refer to its opinion as examine how to construct effective customer due diligence measures for anti money laundering. Its first meeting was held on February 5, 2010.

The Council examines if it is necessary or appropriate and what problems it will bring to make businesses operators implement customer due diligence measures recommended by FATF. It also consults the scope and the method to make business operators to do such measures. The result of examination will be proposed by 2010 summer.
Table 5-1 Results of the Third FATF Mutual Evaluation of Japan

Recommendation	Outline of Recommendation	Rating	Recommendation	Outline of Recommendation	Rating
1	Money laundering offence	LC	25	Guideline & feedback	LC
2	Money laundering offence - mental element and corporate liability	LC	26	FIU	LC
3	Confiscation and provisional measures	LC	27	Investigation for money laundering and terrorist financing	LC
4	Secrecy laws consistent with the Recommendations	C	28	Power of competent authorities	C
5	Customer due diligence (financial institutions)	NC	29	Supervisory authorities	LC
6	Individuals who are or have been entrusted with prominent public function in a foreign country	NC	30	Resources, integrity and training	LC
31	National cooperation	LC
7	Correspondent banking	NC	32	Statistics	LC
8	Misuse of new technologies & non face-to-face business	PC	33	Legal person-beneficial owners	NC
9	Rely on third parties and introducers for Customer due diligence	N/A	34	Legal arrangements (trust) - beneficial owners	NC
10	Obligation to maintain records of customer identification and transaction record	LC	35	Convention	PC
11	Obligation to pay special attention for unusual transaction	PC	36	Mutual legal assistance	PC
12	Customer due diligence by DNFBP (designated non-financial businesses and professions)	NC	37	Dual criminality	PC
13	Suspicious Transaction Report by financial institutions	LC	38	Mutual legal assistance on confiscation and freezing	LC
14	Obligation to protect reporter	LC	39	Extradition	PC
15	Obligation to maintain internal controls	NC	40	International cooperation (information exchange with foreign counterparts)	LC
16	Suspicious Transaction Report by DNFBP	PC	I	Implement United Nation instruments	PC
17	Sanction for non-compliance	LC	II	Criminalise terrorist financing	PC
18	Shell bank (bank incorporated in a jurisdiction in which it has no physical presence)	PC	III	Freeze and confiscate terrorist assets	PC
19	Other forms of reporting	C	IV	Suspicious transaction reporting related to terrorism	LC
20	Other DNFBP & secure transaction technique	C	V	International cooperation for terrorism	PC
21	Special attention for higher risk countries	NC	VI	Money/value transfer services	PC
22	Foreign branches & subsidiaries	NC	VII	Wire transfer rules	LC
23	Supervisory obligation for financial institutions	LC	VIII	Non profit organization	PC
24	Supervisory obligation for DNFBP	PC	IX	Cross border declaration & disclosure (Cash courier)	NC
# Money Laundering Trends

In order to take effective AML measures, it is necessary to understand the scale and modus operandi of actual money laundering activities. JAFIC understands them through cleared cases related to money laundering and STRs. Section 1 of this Chapter describes actual conditions based on the cleared cases of money laundering.

As explained in Chapter 2, money laundering defined in Japan means control of management of enterprises of juristic persons and other entities through illicit proceeds (Article 9), concealment of criminal proceeds, etc. (Article 10) and receipt of criminal proceeds, etc. (Article 11) stipulated in the Act on the Punishment of Organized Crimes, and concealment of drug-related criminal proceeds, etc. (Article 6) and receipt of drug-related criminal proceeds, etc. (Article 7) stipulated in the Anti-Drug Special Provisions Law. They include typical money laundering activities such as money transfer to a place to prevent tracing criminal proceeds and depositing such proceeds into a bank account under the name of another person, although they don’t cover all activities to transfer criminal proceeds.

It is better understood that the number of cleared cases of money laundering shows the AML achievement in Japan. The amounts of confiscation of criminal proceeds according to the cleared cases also indicate an important element of the AML achievement. Section 2 of this chapter describes confiscation of criminal proceeds and the system of a securance order for confiscation before the prosecution to ensure the confiscation.

## Section 1 Cleared Cases of Money Laundering

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

## 1 Number of Cleared Cases

There were 226 cases (53 more than the previous year) cleared of money laundering under the Act on the Punishment of Organized Crimes in 2009, including 172 cases of concealment of criminal proceeds, etc. (note) (38 more than the previous year), and 54 cases of receipt of criminal proceeds, etc. (16 more than the previous year). The accumulated total number of the cleared cases after the enforcement in 2000 of the law is 981.

(note) Criminal proceeds, etc. mean proceeds from criminal activities, assets deriving from criminal proceeds, or assets mixed these assets and other assets.
Table 6-1 Number of cleared cases of Money Laundering under the Act on the Punishment of Organized Crime

2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Total
Management Control through Illicit Proceeds (Article 9)	0	0	0	0	0	0	1	0	1	0	2
Concealment of Criminal Proceeds, etc. (Article 10)	3 (1)	10 (5)	19 (9)	45 (25)	50 (29)	65 (21)	91 (18)	137 (35)	134 (41)	172 (49)	726 (233)
Receipt of Criminal Proceeds, etc. (Article 11)	0	2 (2)	9 (7)	11 (10)	15 (11)	42 (27)	42 (35)	40 (25)	38 (21)	54 (41)	253 (179)
Total	3 (1)	12 (7)	28 (16)	56 (35)	65 (40)	107 (48)	134 (53)	177 (60)	173 (63)	226 (90)	981 (413)

(Note) The numbers in brackets represent the number of cases conducted by Boryokudan members, etc. (known to the National Police Agency)

In 2009, the four major categories of the predicate offences of money laundering under the Act on the Punishment of Organized Crimes were fraud such as “Furikome” fraud (67 cases), loan sharking offences (48 cases) such as violations of the Investment Law and the Money Lending Business Law, theft (31 cases) and violation of the Prostitution Prevention Law (24 cases). Although the ranking changed from the previous one, fraud such as “Furikome” fraud and “loan sharking offences” were still in the top 2 categories, and the total number of cases of these two top categories was 115, representing approximately 50% of all cases cleared of money laundering. This shows that the source of criminal proceeds was from both of these crimes as same as in the previous year. (Regarding the number of cleared cases of money laundering under the Anti-Drug Special Provisions Law, please refer to Paragraph 2 of this section).

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

## (1) Examples of Concealment of Criminal Proceeds

In 2009, it is understood that the suspects tried to evade investigation of law enforcement authorities by various methods observed in the following cases; a case where “Furikome” fraud groups, who repeatedly deceived victims making them believe that they would receive a medical expense refund, etc., made victims deposit their money into bank accounts under the name of persons other than the group members (Case 1), a case where a suspect, using a message board on the website, made a victim deposit money for the purchase of an automobile into an account under the name of another person (Case 2), a case where the suspects, using fictitious names, sold products obtained by forged credit cards in organized fraud (Case 3), a case where an “Ore Ore Fraud” group had an unconcerned friend kept money, which they had obtained through the fraud and was sent through the postal mail service for a small parcel (Case 4), a case of selling stolen gift certificates, etc. at a ticket shop by impersonating another person.

Moreover, there is a trend, in concealment of criminal proceeds in the cases such as “Furikome” fraud, “loan sharking offences” and selling of pornographic DVDs, etc., that a suspect make a victim deposit money into a bank account under the another person’s name, which is still the main infrastructure for money laundering in the crimes on the non-face-to-face basis.
### [Case 1] (Concealment of criminal proceeds, etc. related to “Furikome” fraud (Refund fraud) by impersonating a city official)

Unemployed men intended to deceive victims to take their money making them believe, by impersonating officials of the city and the social insurance office, that they would receive a refund of medical expenses, etc. giving directions on how to use the ATM machine for procedures to receive refund money and making them deposit their money into a bank account. The suspects made a lot of victims deposit a total of approximately 115 million yen from August 2007 to November 2007 into a bank account under the name of another person and managed by the suspects. The suspects were arrested under the Act of the Punishment of Organized Crimes (charged with concealment of criminal proceeds, etc.).

(May, Tokyo Metoropolitan Police)

### [Case 2] (Concealment of criminal proceeds, etc. related to fraud under the guise of selling used cars using a message board on the website)

An unemployed man, who found a message on the website from a person that wanted to purchase a high class vehicle, intended to deceive the person to take money for the amount of the sale of the vehicle. He e-mailed the person through a mobile phone, between November 2007 and April 2008, offering a fraudulent car sale, and made the victim deposit a total of approximately 1.6 million yen into a bank account under another person's name and managed by the suspect. The suspect was arrested for violation of the Act on the Punishment of Organized Crimes (and charged with concealment of criminal proceeds, etc.).

(May, Okayama Pref. Police)

### [Case 3] (Concealment of criminal proceeds, etc. related to fraud in the use of forged credit cards in a wide range of areas by a fraud group in collusion with Chinese)

Executive members of a Japanese fraud group intended to make a profit by selling products bought by forged credit cards at electronics stores in collusion with Chinese exchange students. They bought a total of 590 products by forged credit cards by impersonating another person at electronics stores in Miyagi prefecture, Tokyo and Osaka between February to April 2008. Then they sold them to second hand shops under another person's name for a total of 31 million yen. The suspects were arrested for violation of the Act on the Punishment of Organized Crimes (charged with concealment of criminal proceeds, etc.).

(March, Miyagi Pref., Metropolitan Tokyo Police, and Nara Pref. Police)
Japan, there were 4 cases of forgery of official documents such as certificate of alien registration, 3 cases of fraud by credit card, etc. and 1 case each of theft, “loan sharking offences” and violation of the Prostitution Prevention Act and Trademark Act.

There was a case cleared in May by the Aichi and Chiba Prefectural Police where a criminal group formed of Chinese, Bangladesh, and Vietnamese sold forged certificate of alien registration to illegal immigrants and illegal residents in Japan, and concealed criminal proceeds by depositing a large sum of criminal proceeds, etc. into a bank account under the name of another person (Case 9). The leader of the group conducted money laundering technically by depositing his share of the proceeds into a bank account under the name of additional another person.

### [Case 9] (Concealment of criminal proceeds, etc. related to forgery of official documents with a signature or seal)

A Chinese man, who was the leader of a criminal group formed of foreigners including Chinese, Bangladeshi and Vietnamese engaging in the illegal selling of forged alien registration certificates, managed the profits of selling of forged alien registration certificates, which were criminal proceeds, in multiple bank accounts exclusively for deposit, and deposited his own share of the proceeds of approximately 1.7 million yen into a bank account under another person's name and managed by him, from August 2008 to January 2009. The suspect was arrested for violation of the Act on the Punishment of Organized Crimes (charged with concealment of criminal proceeds, etc.).

(May, Aichi, Chiba Pref. Police)

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

In cleared cases of money laundering under the Anti-Drug Special Provisions Law in 2009, there were 5 cases related to concealment of drug-related criminal proceeds, etc. (Note) (5 less than the previous year) and 5 cases of receipt of drug-related criminal proceeds, etc. (3 more than the previous year). The accumulated total number of the cleared cases after 2000 is 64.

(Note) Drug-related criminal proceeds, etc. mean drug-related criminal proceeds, assets derived from the drug-related criminal proceeds or assets mixed these assets and other assets.

Table 6-2 Number of cleared cases of money laundering

under the Anti-Drug Special Provisions Law

2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Total
Concealment of drug-related criminal proceeds, etc. (Article 6)	2(1)	3(0)	0(0)	8(2)	5(3)	3(2)	5(3)	5(4)	10(4)	5(1)	46(20)
Receipt of drug-related criminal proceeds, etc. (Article 7)	0(0)	0(0)	0(0)	2(2)	0(0)	2(2)	5(2)	2(1)	2(1)	5(3)	18(11)
Total	2(1)	3(0)	0(0)	10(4)	5(3)	5(4)	10(5)	7(5)	12(5)	10(4)	64(31)

$ ^{*} $ The numbers in brackets represent the number of cases conducted by Boryokudan members, etc. (known to the National Police Agency)
### [Case 10] (Receipt of drug-related criminal proceeds, etc. related to trafficking of regulated drug by the designated Boryokudan)

Executive members of the Azuma-gumi, who managed trafficking of regulated drugs such as stimulant drugs, within part of the area of “Airin District” in Nishinari-ward, Osaka city as their territory, received total amount of 5.74 million yen as location fee from a trafficking group, knowing that they were part of the criminal proceeds derived from selling of the stimulant drugs, etc. in many times on the street within the area by the dealers of the group for the purpose of profit. The suspects were arrested for violation of the Anti-Drug Special Provisions Law (receiving of drug-related criminal proceeds, etc.).

(April, Osaka Pref. Police)

## Section2 Deprivation of Criminal Proceeds

In order to prevent criminal proceeds from being used to maintain and expand 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 by the court order. To ensure that criminal proceeds are not concealed or spent before the order is given, the police use the system of a securance order for confiscation before the prosecution stipulated in the Act on the Punishment of Organized Crime and the Anti-Drug Special Provisions Law, and confiscate criminal proceeds effectively.

## Paragraph 1 Confiscation and Collection of Equivalent Value under the Act on the Punishment of Organized Crime

## 1 Application of Provisions of Confiscation and Collection of Equivalent Value

The application of provisions of confiscation and collection of equivalent value under the Act on the Punishment of Organized Crime in general court procedures (first trials) is shown in the following Table 6-3.

Table 6-3 Statistics of the application of provisions of confiscation and collection of equivalent value under the Act on the Punishment of Organized Crime in general first trials

Year	Confiscation	Collection	Total
Persons	Amount	Persons	Amount	Persons	Amount
2004	15	69,610	22	500,773	37	570,383
2005	18	69,958	54	585,698	72	655,657
2006	27	150,406	75	1,869,842	102	2,020,248
2007	29	104,020	67	603,680	96	707,700
2008	40	335,721	79	560,791	119	896,512

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

Note 2: Units are in thousands of yen (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 duplicated amount.