to whether or not a certain person is an anti-social force and the National Police Agency's database were connected with each other, and the operation of the connected system started in earnest in February of the same year. The system is used to make inquiries about all of members' new customers. In addition, the Japan Securities Dealers Association also strives to ensure smooth and appropriate system operation by conducting training concerning the inquiry service using the system and checking the operation status first-hand.

## 8 Moneylending Industry

Japan’s moneylending industry has a self-regulating body called the “Japan Financial Services Association.” In efforts to prevent damages caused by money laundering and anti-social forces, the Association implements voluntary regulations, which has provided relevant items for verification purposes to be added to internal regulations by members as self-regulation.

In addition, members are provided with reference materials such as guidelines or “model regulations” for use in formulating internal regulations. These guidelines show specific examples of relevant items to be included.

To ensure effective voluntary regulation, members were inspected on the full body of their internal regulations in FY2011, and guidance and instruction were provided where the adoption of relevant items was found to be insufficient. As a result, all members have now devised compliant regulations.

In September FY2011, a Boryokudan exclusion clause was added to contract formats sold to members, and the revised format was posted on the Association's website, enabling not only members but all moneylending businesses to view these materials, in efforts to facilitate the adoption of said clause.

The Association conducts both document and field work inspections. The Association audits member company compliance by assessing how well internal systems contained in the directive entitled “Preventing Damages Caused by Money Laundering, Terrorist Financing, and Anti-social Forces” are established.

The Association also notes information on preventing damages caused by money laundering and anti-social forces on the Association’s website in order to familiarize association members with these issues.

In FY2014, in light of the revision of the Financial Services Agency’s “Comprehensive Guidelines for Supervision of Money Lenders,” the Association made necessary revisions to voluntary regulatory rules, guidelines and model regulations. It also collects information from the National Center for the Elimination of Boryokudan and commissioned Japan Credit Information Reference Center Corp., which is a designated credit information organization, to start specified information inquiry service, which makes it possible for members to conduct checks concerning antisocial forces, thereby promoting the development of systems related to the prevention of damage inflicted by antisocial forces in the moneylending industry. The Association is also considering the possibility of providing information on antisocial forces held by the Japanese Bankers Association to members. In addition, it has started to review all members’ internal regulations once again as a measure to secure the effectiveness of