Silviase/jgov_v1.4_full_ann huggingface dataset:
related to identification by lawyers are described in (1) to (7) and Table 2-1 below.

## (1) Verification at the time of transaction (Article 4)

In conducting specified transactions described in Table 2-2 with customers, specified business operators are required to verify their identification data (the name, domicile and birth date), the purpose and intended nature of the transaction, occupation (identification data, including the name and location of the headquarters or main office, the purpose and intended nature of the transaction, type of business and the beneficial owner in cases where the customer is a legal person) by asking for their identification documents such as driver's license. However, in cases where the specified business operator is either a judicial scrivener, administrative scrivener, certified public accountant or tax account; hereinafter referred to as an "administrative scrivener, etc.), it is sufficient to verify the customers' identification data alone.

When a specified transaction is conducted with a customer's agency or a representative of the customer's corporation, identification data of said agency or representative must also be verified.

Regarding transactions that have a high risk of being related to money laundering, specified business operators are required to verify items related to verification at the time of transactions with a more enhanced method than usual. Moreover, in cases where the transaction involves the transfer of assets worth more than ¥2 million, specified business operators other than judicial scriveners are required to verify information concerning customers' source of wealth and source of funds.

(For details, see the Japan Financial Intelligence Center (JAFIC) Website)

Methods of verification at the time of transactions are as shown in Figure 2-3.

## (2) Preparation and preservation of verification records (Article 6)

Prepare and keep records of verification records collected at the time of transaction, as well as measures taken for verification of the customer at the time of the transaction, for seven years from the day when the transactions were completed or terminated;

(3) Preparation and preservation of transaction records etc. (Article 7)

Prepare and keep the record of the date and contents of transactions concerned for seven years;

## (4) Reporting of suspicious transactions (Article 8)

Specified business operators are required to file an STR with the competent administrative authority in cases where an asset received through their business operation is suspected of being criminal proceeds, or where the customer is suspected of engaging in money laundering with regard to the specified business affairs.

However, an administrative scrivener, etc. is not required to file an STR.

## (5) Notification pertaining to foreign exchange transactions (Article 9)

In making wire transfers to other countries, specified business operators conducting exchange transactions on a regular basis are required to notify the receiving exchange transaction business operator located abroad of certain items, such as the customer's name and account number.
(6) Measures to ensure thorough and effective CDD measures to be taken (Article 10)

Specified business operators are required to perform on going due diligence, and to set up other systems as necessary.

(7) Measures for verification of customer identification data by lawyers (Article 11)

It is established by special provision, that lawyers shall conduct measures relevant to those described in (1) through (3) and (6) above based on The Rule of the Japan Federation of Bar Associations in line with cases of judicial scrivener.

The CDD regime in which measures as described in (1) through (3) above are undertaken is intended to make the financial or other services less attractive to those who try to use them for money laundering or any other illicit purposes and to ensure traceability of illicit funds. Meanwhile, the STR regime as described in (4) in which reported information will be used for investigations into money laundering and/or predicate offences, is also intended to protect the financial system from misuse to ensure its soundness. Measures (as noted in (6)) are intended to ensure accuracy of the customer identification process during transactions, making the process more efficient. These measures are expected to help specified business operators be more aware of money laundering risks, facilitating a greater degree of comprehensiveness and efficiency.

The purpose of notification pertaining to foreign exchange transactions described in (5)
Table 2-1 【Measures that must be implemented by specified business operators under the Act】

Mandatory measures	Verification at the time of transaction	Preparation and preservation of verification records	Preparation and preservation of transaction records etc.	Reporting of suspicious transactions	Notification per-taining to foreign exchange transac-tions	Measures to ensure thorough and effective CDD measures to be taken
Specified business (Article 2, paragraph (2))	[Article 4]	[Article 6]	[Article 7]	[Article 8]	[Article 9]	[Article 10]
Financial institutions (items 1 through 36)	○	○	○	○	○	○
Financial leasing opera-tors (item 37)	×
Credit card operators (item 38)
Real estate agents (item 39)
Dealers in precious metals and stones (item 40)
Postal receiving ser-vice providers (item 41)
Telephone receiving ser-vice providers (item 41)
Telephone forwarding service providers (item 41)
Judicial scriveners (item 43)
Certified administrative procedures specialists (item 44)	○	○	○	×
Certified public accoun-tants (item 45)
Certified public tax acc-ountants (item 46)
Lawyers (item 42)	As prescribed by the bylaws set by the Japan Federation of Bar Associations based on examples of judicial scriveners, etc. (Article 11).	As prescribed by the bylaws set by the Japan Federa-tion of Bar Associations based on examples of judi-cial scriveners, etc. (Article 11)
Figure 2-3 Methods of Verification at the Time of Transaction

For transactions that carry a high risk of money laundering, verification of transaction purpose and intended nature must be carried out with stricter criteria. And, for transactions of over ¥2 million, verifications of assets and income are also required.

## 6 Dissemination of STR Information (Articles 12 and 13)

In order to make use of STR information for investigations conducted domestically or internationally JAFIC may disseminate such information to public prosecutors, assistant officers to prosecutors, judicial police officials (police officers, narcotics control agents and coast guards), customs officers and personnel of the Securities and Exchange Surveillance Commission (SESC) and other related investigators. JAFIC would also disclose STR information to foreign FIUs concerned based on the agreed terms of conditions.

## 7 Supervision (Articles 14 through 18, 24, 25 and 29)

The Act provides for a supervisory regime undertaken by competent administrative authorities in order to ensure the compliance of specified business operators. For this purpose, the supervising authorities would exercise a supervisory power by conducting on or off-sight inspection of the regulated businesses or issuing a rectification order for non-compliance as necessary.

Persons who have failed to submit reports or materials, or submit false reports or materials,
or who refused on-site inspections, shall be punished with imprisonment with labor for not more than one year or a fine of not more than three million yen or both. A person who violates rectification order shall be punished with imprisonment with labor for not more than two years or a fine of not more than three million yen or both.

Importantly, to complement the supervision by the regulating authorities, JAFIC is authorized to advise the supervising authorities over whether appropriate actions should be taken against a specific specified business operator based on the fact of JAFIC detecting non-compliance. For the purpose of this duty, it is also granted a power of inspection of a specified business operator in doubt.

## 8 Penal Provisions regarding Reception/Delivery/Provision of Deposit/Savings Passbooks and Exchange Transaction Cards(Articles 27 and 28)

For years it had been a significant challenge to take actions against traded deposit/savings passbooks, ATM cards or Exchange Transaction Cards which were exposed to exploitation for the purpose of money laundering or any proceed-related crimes. In order to prevent this, the Act prohibits anyone to give or take a deposit/savings passbook as a subject of transaction no matter whether or not it is for value with a penalty of imprisonment with labor for not more than one year or a fine of not more than one million yen or both. Specifically, when such transaction is conducted as a business of any parties concerned, the penalty would be aggravated to imprisonment with work for not more than three years or a fine of not more than five million yen or both.

Furthermore, it is also prohibited that anyone invites or solicits another party to assign, deliver or provide a deposit/savings passbook no matter whether or not it is for value, resulting in a punishment of imprisonment with labor for not more than one year or a fine of not more than one million yen or both.

## Section 2 Outline of the Act on Punishment of Organized Crimes and the Anti-Drug Special Provisions Law

## Paragraph 1 The Act on Punishment of Organized Crimes

The Act on Punishment of Organized Crimes was enacted in response to the introduction of the obligation for expanding the scope of predicate offenses of money laundering to include serious crimes due to the revision of the FATF 40 Recommendations of 1996 and the international agreement reached at the 1998 Birmingham Summit on the establishment of an FIU, and it was put into force in February 2000. In terms of criminal proceeds regulations, this law has expanded the scope of predicate offenses to include certain serious crimes other than drug crimes specified by the Anti-Drug Special Provisions Law. It also provides for the confiscation and collection of equivalent value of criminal proceeds other than drug-related criminal proceeds specified by the Anti-Drug Special Provisions Law.
Provisions concerning FIU were provided in the Act on Punishment of Organized Crimes before the enforcement of the Act on Prevention of Transfer of Criminal Proceeds.

## 1 Criminalization of Money Laundering (Articles 9 through 11)

## (1) Illegal corporate control management (Article 9)

The Act on Punishment of Organized Crimes criminalizes the act of changing executives, etc. of a legal person as a means to control its business management by using illicit proceeds (proceeds from certain crimes, proceeds from certain drug-related criminal proceeds, assets acquired through ownership or disposition of those proceeds and assets including such assets and other assets) in addition to the concealment and receipt of criminal proceeds specified by the Anti-Drug Special Provisions Law.

## (2) Concealment of criminal proceeds (Article 10)

The following act are criminalized by this article: (i) The Act of disguising facts with respect to acquisition or disposition of criminal proceeds, (ii) the act of concealing criminal proceeds, (iii) the act of disguising facts with respect to the source of criminal proceeds. The act of depositing criminal proceeds in the name of another person and the act of manipulating account books so as to make it appear as if the criminal proceeds are proceeds from legitimate business activities are equivalent to (1) the act of disguising facts with respect to acquisition of criminal proceeds.

The act of purchasing goods with criminal proceeds in the name of another person is equivalent to (1) the act of disguising facts with respect to disposition of criminal proceeds.

The act of physically concealing criminal proceeds or making a remittance to other countries so as to make it difficult to trace the funds is equivalent to (2) the act of concealing criminal proceeds.

The act of a recipient of criminal proceeds pretending to receive debt repayment from the giver is equivalent to (3) the act of disguising facts with respect to the source.

## (3) Receipt of criminal proceeds (Article 11)

The act of knowingly receiving criminal proceeds is criminalized by this article.

An example of this is the act of a senior member of a Boryokudan group receiving money from those who work under him while knowing that the money was obtained through extortion.

## 2 Confiscation, Collection of Equivalent Value and Securance Measures (Articles 13 through 16, 22, 23, 42 and 43)

The system of confiscation and collection of equivalent value provided in the Act on Punishment of Organized Crimes is subject to the discretion of the court in principle, unlike the system provided in the Anti-Drug Special Provisions Law. However, it has been strengthened compared with the system of confiscation and collection of equivalent value provided in the Penal Code, in that the scope of items subject to the system has been expanded to include monetary claims and assets obtained as the fruit of criminal proceeds and that securance measures have been established.
Regarding the restraining order for confiscation, one of the securance measures, the court may prohibit — either upon the request of a prosecutor or at based on its own authority — the disposition of assets that should be confiscated in a prosecuted case in order to prevent the disposition before a court judgment is made. In cases where there is the possibility that an offender who acquired assets that are equivalent to criminal proceeds will detect the start of investigation and dispose of the assets, the judge may prohibit the disposition of the assets upon the request of judicial police officers, etc. even before institution of prosecution for a period of 30 days or less (the period may be renewed upon the request of the prosecutor). Regarding the restraining order for collection of equivalent value, there is a similar provision to that regarding the restraining order for confiscation (however, only the prosecutor can request a temporary restraining order before institution of prosecution.

## Paragraph 2 Anti-Drug Special Provisions Law

The Anti-Drug Special Provisions Law was enacted for the purpose of blocking cycles of illegal proceeds derived from drug crimes, directly triggered by the UN New Narcotics Convention adopted in 1988 and the FATF “40 Recommendations” compiled in 1990, and enforced in July 1992. This law contains two items with regard to measures against drug crime proceeds as below. In terms of regulation on drug-related criminal proceeds regulations, this law provides for the following two matters:

## 1 Punishment of Money Laundering (Articles 6 and 7)

The Anti-Drug Special Provisions Law criminalize the acts of disguising, concealing and receiving as specified by the Act on Punishment of Organized Crimes as examples of money laundering.

## 2 Confiscation, Collection of Equivalent Value and Securance Measures (Articles 11 through 13, 19 and 20)

Drug-related criminal proceeds shall be confiscated or the equivalent value thereto shall be collected. The system of confiscation and collection of equivalent value provided in this law is mandatory in principle whereas the system provided in the Act on Punishment of Organized Crimes is discretionary.

Regarding the restraining orders for confiscation and collection of equivalent value, there are provisions similar to those under the Act on Punishment of Organized Crimes.

## Section 3 Recent Legislative Changes

From the AML/CFT perspective, the National Police Agency has made necessary amendments as appropriate to the Act on Prevention of Transfer of Criminal Proceeds and its subordinate decrees in order to adapt to the current AML/CFT environment.
international settlements. This contract makes it possible for Japanese financial institutions which do not have deposit accounts at foreign banks to indirectly make settlements using other banks' deposit transaction relationship.

C. Expansion of obligation for specified business operators to develop necessary internal control systems

Formulating rules concerning the implementation of such measures as verification at the time of transactions, etc. and appointing a person in charge of supervising business affairs, etc. were added to the scope of measures that specified business operators appropriately implement those measures.

## 2 Other points of the amendment

(1) Amendment of the Order for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds by way of the Cabinet Order for Development of Relevant Cabinet Orders Associated with the Enforcement of the Act to Partially Amend the Financial Instruments and Exchange Act (promulgated on January 24, 2014)

As a result of the amendment of the Order for Enforcement of the Financial Instruments and Exchange Act Associated with the enforcement of the Act to Partially Amend the Financial Instruments and Exchange Act, listed investment securities issued by investment corporations were added to the scope of securities issued by listed companies, etc. Therefore, verification at the time of transaction is required when the customer is a listed investment corporation.

(2) Amendment of the Ordinance for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds Associated with the Enforcement of the Cabinet Office Ordinance concerning Financial Instruments Business Operators Associated with the amendment of the Financial Instruments and Exchange Act (promulgated on March 11, 2014)

As a result of the amendment of the Cabinet Office Ordinance concerning Financial Instruments Business Operators associated with the amendment of the Financial Instruments and Exchange Act, financial instruments business operators are required to manage deposits entrusted by customers under the trust method with regard to commodity-related market derivative transactions which they have been newly authorized to conduct. Therefore, the conclusion of trust contracts was exempted from the obligation for verification at the time of transaction.

(3) Amendment of the Ordinance for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds associated with the enforcement of the Act to partially Amend the Financial Instruments and Exchange Act (promulgated on July 2, 2014)

As a result of the partial enforcement of the Act to Partially Amend the Financial Instruments and Exchange Act, investment trust beneficiary rights and new investment options were added to the scope of items subject to the opening of special accounts. Therefore, the opening of special accounts related to those products was exempted from the obligation for verification at the time of transaction.

(Note) Special accounts are accounts that are opened at securities companies, etc. in the name of rights holders at the time of the new listing of shares when the issuer cannot identify the rights
holders' accounts. The opening of all special accounts was exempted from the obligation for verification at the time of transaction.
# Efforts of Specified Business Operators and Promotion of Public Awareness

In order to effectively implement countermeasures against money laundering, it is critical that every obligation imposed on specified business operators is properly enforced. For this purpose, robust efforts have to be made at the private sector level. JAFIC is working together with relevant competent ministries on providing various outreach programs to support their own efforts by organizing an AML/CFT workshop and posting the latest information on the website.

Importantly, JAFIC would, when there is non-compliance, exercise its supervisory power over the non-compliance in consultation with the supervising administrative authority to issue a rectification order against the specified business operators (except for lawyers) concerned.

## Section 1 Efforts of Specified Business Operators

## 1 Banking Industry

The “Japanese Bankers Association” (hereinafter referred to as “JBA”), of which most of the banks operating in Japan are members, established the “Working Committee on Money Laundering Issues” within the JBA in 1990 and, since then, has been taking AML/CFT, such as preparing and providing notices on items to keep in mind regarding CDD and STR filing, preparing and distributing seminar handbooks to its members, giving seminars for its members, and so on. Furthermore, the JBA prepares leaflets, posters or the like to inform customers of CDD procedure. In addition, the JBA is promoting organizational measures on issues related to money laundering or terrorist financing inside or outside of Japan by following, at all times, the development of AML/CFT measures at the FATF, exchanging and sharing information constantly with foreign bankers associations or the like, making responses to the FATF’s mutual evaluations of Japan, and so forth. As an example of the JBA playing a leading part in the efforts of the banking industry, is that it incorporated provisions on compliance including the prevention of money laundering and terrorist financing and confrontation with anti-social forces into the JBA “Code of Conduct,” (revised in November, 2013), and prompted its members to put such into practice.

## 2 Shinkin Banks (Credit Unions)

As for the credit union industry, in 1997 the National Association of Shinkin Banks established the Shinkin Banks Ethics Program (re-named the Shinkin Banks Action Program in