suspicious transaction reporting etc. to be implemented by a certain range of business operators. For the fundamental structure of the law, please refer to Fig. 2-3.

## 1 | Purpose of the Law (Article 1)

The purpose of this law is to prevent the transfer of criminal proceeds and insure the appropriate enforcement of international treaties concerning the prevention of financing terrorism, etc. and, thereby, to assure the safety and peace of national life and to contribute to the sound development of economic activities. The law provides for tools to accomplish these objectives, that is, identification of customers, preservation of transaction records, and reporting of suspicious transactions by specified business operators as defined in 2 below. These actions should promote a synergy effect with other measures as set forth by the Organized Crimes Punishment Law and the Anti-Drug Special Law.

## 2 | Specified Business Operators (Paragraph 2 of Article 2)

Business operators, required to take measures like customer identification by this law, are called "Specified business operators," the scope of which is defined in line with the FATF Recommendations as well as in consideration of business practices in Japan and their money laundering risks. Financial institutions, etc. described in the table below had already been obliged to undertake identical measures by the Law on Customer Identification by Financial Institutions and other regulations.

○Financial institutions, etc. (Item 1 through 33):

Bank; Shinkin bank; Federation of Shinkin banks; Labor bank; Federation of labor banks; Credit cooperative; Federation of credit cooperatives; Agricultural cooperative; Federation of agricultural cooperatives; Fishery cooperative; Federation of fishery cooperatives; Fishery processing cooperative; Federation of fishery processing cooperatives: Norinchukin Bank; shokochukin Bank; Insurance company; Foreign insurance company etc.; Small-claims/short-term insurance business operator; Federation of fishery cooperatives for mutual aid; Financial instruments business operator; Securities finance company; Specially permitted business notifying person; Trust company; Person who conducts declaration of trust intending to sell beneficiary rights; Real estate specified joint enterprise operator; Mutual loan company; Money lender; Call money market broker; Futures commission merchant; Book-entry transfer institution; Account management institution; Management Organization for Postal Savings and Postal Life Insurance; Currency exchanging operator (This law is yet to be applied to the Development Bank of Japan and electronic receivables recording organizations.)

○Finance leasing operator (Item 34)

○Credit card operator (Item 35)

The real estate transaction business operator (Item 36)

Business operator dealing with jewelry, precious metal etc. (Item 37)

○Business operator providing a service of receiving postal items or a service of receiving telephone call (Item 38)

○Lawyer or legal profession corporation (Item 39)

○Judicial scrivener or judicial scrivener corporation (Item 40)

○Administrative scrivener or administrative scrivener corporation (Item 41)

○Certified public accountant or audit firm (Item 42)

○Certified tax accountant or certified tax accountant corporation (Item 43)