suspicious transaction reporting obligation based on the Act for the Prevention of Transfer of Criminal Proceeds, in coordination with related governmental agencies.

## Paragraph3 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 active 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 financing terrorism measures, such as preparing and providing notices on items to keep in mind regarding the procedures of customer identification and suspicious transaction reporting, preparing and distributing seminar handbooks for 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 identification 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 information continuously 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 into its "Code of Conduct," established in November 2005, provisions on compliance including money laundering prevention and confrontation with antisocial forces, and has had its members put them into practice.

## 2 Efforts of Securities Industry

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

Moreover, the Japan Securities Dealers Association as well as each stock exchange, together with related institutions including the Financial Services Agency and the National Police Agency, established the “Securities Safety Liaison Committee” and “Securities Safety Liaison Committee Working-level Conference” in November 2006 to examine further measures to eliminate the Boryokudan from the industry. On July, 2007, “Elimination of Antisocial Forces from Securities Transactions and the Securities Market” was published as an interim report of the examination results of above mentioned working-level conference.

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, in addition to securities companies, the Japan Securities Dealers Association, Stock Exchange, Financial Bureau, Prefectural Police Department, the National Center for Elimination of Boryokudan and the Bar Association established the “Securities Police Liaison Council” in each prefecture, and effectively improved the elimination of the Boryokudan from the industry and the prevention of money laundering, through on-site level information exchange and the implementation of seminars.

Additionally, the Japan Securities Dealers Association has established the “Securities Safety Countermeasure Support Center” in March 2009. It is registered as the management body of information violent 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.