## Business operators who are required to conduct verification and transactions for which verification is required

Business operators who are required to conduct verification	Transactions for which verification is required
Financial institutions, etc.	· Opening of deposit/savings accounts, etc. · Large scale cash transactions which amount to more than 2 million yen · Cash transfers which amount to more than 100,000 yen · Other transactions specified by a Cabinet Order
Financial leasing operators · The Act does not apply to the leasing of articles already held by a lease company to a customer.	Conclusion of finance lease contracts for a rental fee exceeding 100,000 yen per payment
Credit card operators	Conclusion of credit card contracts
Real estate agents	Conclusion of contracts for buying and selling of building lots or buildings, or agent work or intermediation thereof
Dealers in precious metals and stones	Conclusion of contracts for buying and selling of precious stones, precious metals, etc., for which prices are more than 2 million yen and payment is made by cash
Postal receiving service providers (Private P.O. Box)	Conclusion of contracts for the provision of services
Telephone receiving service providers (Telephone secretary)	Conclusion of contracts for the provision of services
Newly added business operator	Conclusion of contracts for the provision of services
Telephone forwarding service providers	Conclusion of contracts for the provision of services
Judicial scriveners	Conclusion of contracts pertaining to agent or deputy work for the following acts: · Acts or procedures concerning the buying and selling of building lots and buildings · Acts or procedures concerning the establishment, merger, etc., of companies, etc. · Management or disposition of cash deposits, securities and other property of a value exceeding 2 million yen
Certified administrative procedures specialists	Conclusion of contracts for the provision of services
Certified public accountants	Excluding management or disposition of property of other persons carried out as a duty for a guardian of an adult, etc., elected by the court or competent government agency. · Excluding the conclusion of voluntary guardianship contracts
Lawyers	· As prescribed by the rules of the Japan Federation of Bar Associations in line with cases of a judicial scrivener and other professionals

## Leaflet

## Prohibition of giving false information

When a business operator conducts verification at the time of transaction, a customer, or a person who is actually in charge of conducting the transaction in the case of a transaction by a juridical person or by a representative person, is prohibited from giving false information concerning the customer identification data. Penal provisions apply to a person who has given false information concerning customer identification data for the purpose of concealing the customer identification data.

## I mmunity of business operators

A business operator may, when a customer, or a person who is actually in charge of conducting the transaction in the case of a transaction by a juridical person or by a representative person, does not comply with the request for verification, refuse to perform its obligations pertaining to the transaction until the customer, etc., complies with the request.

## Preparation and preservation of records

When a business operator has conducted verification at the time of transaction, the business operator is required to prepare verification records and preserve them for 7 years. In this case, the business operator is also required to prepare records concerning the transaction and preserve them for 7 years.

Financial institutions, etc.	Research Office, Planning Division, Planning and Coordination Bureau, Financial Services Agency TEL: 03-3506-6000 (main)
Financial leasing operators	Consumer Affairs Policy Planning Office, Commerce and Consumer Affairs Policy Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry TEL: 03-3501-1511 (main) (ext.4281)
Credit card operators	Commerce Supervisory Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry TEL: 03-3501-1511 (main) (ext.4191)
Real estate agents	Each Regional Development Bureau of Ministry of Land, Infrastructure, Transport and Tourism, or Hokkaido Development Agency, or the section responsible for each prefectural government, by which the license of building lot and building transaction business operator was issued
Dealers in precious metals and stones	Traditional Craft Industry Office, Creative Industries Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry TEL: 03-3501-1511 (main) (ext.3891)
Antique stores and pawnbrokers	Mineral and Natural Resource Division, Natural Resources and Fuel Department, Agency for Natural Resources and Energy, Trade and Industry TEL: 03-3501-1511 (main) (ext.4701)

Postal receiving service providers	Commerce Supervisory Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry TEL: 03-3501-1511 (main) (ext.4191)
Telephone receiving service providers	Telecommunications Consumer Policy Division, Telecommunications Business Department, Telecommunications Bureau, Ministry of Internal Affairs and Communications TEL: 03-5253-5111 (main) (ext.5487)
Telephone forwarding service providers

For more details concerning the Act on Prevention of Transfer of Criminal Proceeds, please visit the National Policy Agency, Japan Financial Intelligence Center (JAFIC) web page at: http://www.npa.go.jp/sosikihanzai/jafic/index.htm

## For inquiries about this booklet, please contact TEL:03-3581-0141

The Japan Financial Intelligence Center, Organized Crime Department, Criminal Investigation Bureau, National Police Agency 1-2 Kasumigaseki 2-chome, Chiyoda-ku, Tokyo 100-8974

## To be enforced on April 1, 2013 Revised Act on Prevention of Transfer of Criminal Proceeds

More transactions will be added to the transactions for which verification is required and more matters will be added to the matters to be verified.

National Police Agency Financial Services Agency Ministry of Internal Affairs and Communications Ministry of Justice Ministry of Finance Ministry of Health, Labour and Welfare Ministry of Agriculture, Forestry and Fisheries Ministry of Economy, Trade and Industry Ministry of Land Infrastructure, Transport and Tourism.

## To prevent money laundering and terrorist financing, more matters, will be added to the matters to be verified at the time of transaction

## Matters to be verified at the time of transaction and documents to be used

When carrying out a transaction, verification of official certificates such as a driver's license is required. Main examples of documents that can be used for verification are described below. Please note that some of the matters to be verified must be verified by different methods depending on whether the transaction is an ordinary transaction or a high risk transaction.

$ ^{*} $ Changes made by this revision are indicated in red.

## Method of verification

Only those matters to be verified at the time of transaction listed in 1 to 2 (for a judicial scrivener and other professionals, only those listed in 1) in the table on the left must be verified.

In the case of individuals in the table on the left must be verified. If a transaction is carried out by a representative person, in addition to verification of the customer, the customer identification data of the person actually in charge of carrying out the transaction must also be verified.

In the case of a face-to-face transaction...

Having a copy of resident card, documents issued by a public agency without photograph etc, presented, and having the information concerning the purpose of the transaction and occupation given

☐ In the case of a non-face-to-face transaction (through Internet, postal mail, etc.)

Having the identification documents or copies thereof sent and having the information concerning the purpose of the transaction and occupation given

Only those matters to be verified at the time of transaction listed in 1 to 4 (for a judicial scrivener and other professionals, only those listed in 1) in the table on the left must be verified.

In addition, the customer identification data of the person actually in charge of carrying out the transaction must also be verified.

Sending documents pertaining to the transaction to the residence indicated in the identification documents by registered mail, etc., as a transfer-prohibited postal item, etc.

## I n the case of a face-to-face transaction

Having a certificate of registered matters, a seal registration certificate or other identification documents presented

Sending documents pertaining to the transaction to the residence indicated in the Identification documents by registered mail, etc., as a transfer-prohibited postal item, etc.

• Having the documents by which the contents of business can be verified, such as articles

• Having the information on the customer identification data concerning beneficial owners given

• Having the identification documents or copies thereof such as a certificate of registered matters and a seal registration certification sent

• Having the information concerning the purpose of the transaction given

• Having documents by which the contents of business can be verified, such as the articles of incorporation, or copies thereof sent

• Having the information on the customer identification data concerning beneficial owners given

### I n the case of a non-face-to-face transaction (through Internet, postal mail, etc.)

Having the identification documents of the person actually in charge of the transaction or copies thereof sent

Sending documents pertaining to the transaction to the residence, etc., indicated in the customer identification data of the juridical person as well as the person actually in charge of the transaction by registered mail, etc., as a transfer-prohibited postal item; etc.

### I n the case of a foreign national who is a short-term resident with no residence in Japan (tourist, etc.) for whom the residence in the country of the foreign national cannot be verified by the indication of his/her passport, etc

O Documents with a valid period need to be valid as of the day they are presented to or received by the business operator. Documents without a valid period are limited to those that have been prepared not later than 6 months before the day they are presented to or received by the business operator.

Points to consider When conducting verification, if the current residence of the customer or the person in charge of carrying out the transaction is different from that on the identification documents, it is necessary for a specified business operator to verify the current residence by having another identification documents, a tax payment certificate, a receipt for social insurance premiums, a receipt for public utility rates (limited to those on which the date of receipt is sealed or the date of issue is indicated, with such date being not more than 6 months before the day on which they are presented to or sent) etc., presented or received.

## ☐ Only face-to-face transactions

As a general rule, if the residence cannot be verified, a transaction for which verification is required is not permitted to be carried out. However, currency exchange, buying and selling of precious stones, precious metals etc., and other transactions are permitted by having such foreign national present his/her passport or crew member's pocket-ledger which indicates, in addition to his/her name and date of birth, nationality and the number.

If it is deemed that the period of stay does not exceed 90 days based on the verification stamp for landing, etc., such foreign national is deemed to have no residence in Japan.

## V erification at the time of high risk transactions

Conducting enhanced due diligence is required when carrying out a transaction that is highly likely to be used for money laundering (high risk transaction).

Furthermore, if such transaction involves the transfer of property of a value exceeding 2 million yen, verification of the status of the property and income is also required (excluding judicial scrivener and other professionals).

## What is a high risk transaction?

A high risk transaction refers to a certain transaction with a party who is suspected of pretending to be a customer related to the verification, or a transaction that is highly likely to be used for money laundering, which falls under any of the following transactions.

A transaction with a person who is suspected of pretending to be a customer, etc., or a representative person, etc., for whom verification has been conducted at the time of the conclusion of a contract in the past

A transaction with a customer, etc. who is suspected to have given false information concerning customer identification at the occasion of verification conducted at the time of the conclusion of a contract in the past

A transaction with a person who resides or is located in Iran or North Korea