Punishment of Organized Crimes in 2009, including 49 cases of concealment of criminal proceeds, etc. (8 more than the previous year), and 41 cases of receiving of criminal proceeds, etc. (20 more than the previous year)

In each criminal type of money laundering related to members of the Boryokudan, etc. of all cases cleared of money laundering, concealment of criminal proceeds, etc. was 28.5%, and receipt of criminal proceeds, etc. was 75.9%. This shows that the percentage of receipt of criminal proceeds, etc. related to members of the Boryokudan, etc. is high.

In each type of predicate offences of money laundering related to members of the Boryokudan, there were 19 cases of fraud such as “Furikome” fraud, 17 cases each of “loan sharking offences” and violation of the Prostitution Prevention Law, 8 cases each of theft and distribution of obscene material, etc., 7 cases of running a gambling place for the purpose of profit and habitual gambling, 4 cases of acceptance of charged stolen properties, 2 cases of extortion, and other offences such as violation of the Horse Racing Act, Lawyers Act, the Copyright Law and the Trademark Act. This shows that members of the Boryokudan, etc. conduct money laundering involving a variety of offences.

(Note) Associate members mean persons related to the Boryokudan other than members of the Boryokudan and likely commit illegal acts of violence, etc. with the organized power of the Boryokudan or cooperate or deal with the maintenance and operations of the Boryokudan, such as financing or providing weapons, etc. for the Boryokudan or Boryokudan members.

## (1) Examples of Money Laundering related to “Loan Sharking Offences” conducted by Boryokudan Members, etc

35.4% of all cases cleared of money laundering related to “loan sharking offences” during 2009 was related to members of the Boryokudan, etc.

Members of the Boryokudan, etc. who ran a “loan sharking” business, technically concealed criminal proceeds, etc. by making the loanees deposit money, upon receipt of the interest obtained at an illegally high interest rate, into a bank account under another person’s name and managed by them (Case 6).

### [Case 6] (Concealment of criminal proceeds, etc. in violation of the Investment Law (high interest rate) / Money Lending Business Law (unregistration) in a loan sharking business)

Members of the Boryokudan of a group affiliated with the Yamaguchi Gumi, solicited so-called "system financing", which is a loan at high interest rates in return for sending bills and checks via postal mail, to medium and small companies by FAX, etc. and loaned them at high interest rates exceeding 17 times the legal rate, and made the loanees deposit a total of approximately 440 million yen as interest for the loaned money, into a bank account under another person's name and managed by the members. The suspects were arrested in violation of the Act on the Punishment of Organized Crimes (charged with concealment of criminal proceeds, etc.).

(March, Hokkaido Pref. Police)

#### (2) Examples of Money Laundering related to Fraud conducted by Boryokudan Members, etc. 28.4% of all cases cleared of money laundering related to “Furikome” fraud during 2009 was related to members of the Boryokudan, etc

Members of the Boryokudan, etc. concealed criminal proceeds, etc. by various methods such as receiving a car loan while using fake adoption papers to hide the fact that they were heavy debtors and saving part of the money by depositing it into a bank account under another person's name and