## I ntroduction

It has been 3 years since the partial enactment of “the Act on Prevention of Transfer of Criminal Proceeds” in April 2007, which established JAFIC, Japan Financial Intelligence Center, as Japanese Flu in Organized Crime Department, Criminal Investigation Bureau, National Police Agency. Also it has been 2 years since the total enforcement thereof.

During this time, JAFIC has worked on to coordinate with competent administrative authorities in charge of supervising specified business operators who are required to implement customer identification and has given a lot of seminars for these specified business operators, for the publicity of the Act on Prevention of Transfer of Criminal Proceeds, and ensure its effectiveness. Furthermore, JAFIC has made progress in various measures to prevent money laundering crime and its predicate offences including “Furikome” fraud (note), such as the total enforcement and some amendment of the Act on Prevention of Transfer of Criminal Proceeds and its sub-regulations.

However in consideration of actual conditions, that criminal proceeds held by criminal organizations such as the Boryokudan, are still being used to promote organized crime, and harms sound economical activities by being injected into legitimate business activities and that these criminal proceeds can easily across the boarders due to the globalization of economic and financial services, the effective implementation of governmental money laundering countermeasures in cooperation with the private sector, and various internationally coordinated activities as well as crackdown by the police, are really essential in order to thoroughly prevent the transfer of criminal proceeds.

Therefore, JAFIC has continued to work on promoting various approaches for the elimination of antisocial forces, such as Boryokudan, at specified business operators, such as financial institutions and the securities industry, and also has actively participated in the deliberations of international agencies, such as FATF (Financial Action Task Force), keeping close cooperation with foreign FIUs (Financial Intelligence Unit) in order to keep pace with the globalization of money laundering crime.

This year, JAFIC again presents its annual report for the many people in various fields who are involved in AML (anti-money laundering) measures, so that they can understand the actual current conditions of AML measures, describing history of Japanese AML measures and legal systems, the establishment of JAFIC, police activities, the situation of suspicious transaction reports, the activities of international cooperation and money laundering trends, etc., in addition to regulation amendments related to the Act for Prevention of Transfer of Criminal Proceeds during the period of 2009.

It is our sincere hope that this annual report can be of some help in understanding the overall AML measures.

## (note)

An act of fraud in which the suspect telephones the victim pretending to be a member of his/her family, and encourages him/her to believe that they urgently need money, on a variety of pretexts, such as that they are required to repay embezzled funds at their company, and having thus upset the victim to transfer money into a deposits and savings account designated by the suspect.

February, 2010

Hirofumi Naito

Director for Prevention of Money Laundering