## 2 | Anti-Money Laundering Measures as Countermeasures

against Transnational Criminal Organizations and International Terrorism

In the 1990s, the international expansion of organized crime was recognized as a phenomenon which could threaten each country's security, and therefore an international convention against transnational organized crimes was studied mainly by the United Nations. At the Halifax Summit in June 1995, it was pointed out that effective measures to prevent the hiding of proceeds not only from drug-trafficking but also from serious crimes were necessary for successful countermeasures against transnational organized crimes. In accordance with these movements, the FATF revised, in June 1996, a part of "the 40 Recommendations," and recommended that the scope of predicate offences (criminal offences as a result of which illegal proceeds were generated and may become the subject of punishment for money laundering) be extended from drug crimes to serious crimes.

Further, at the Birmingham Summit in March 1998, it was agreed by the participating countries to create FIUs (Financial Intelligence Units), which are dedicated to collect, analyze and disseminate money laundering information, as a measure to make effective use of the suspicious transaction reports for criminal investigation.

Later, in response to the terrorist attacks in the US in September 2001, the FATF held an extraordinary meeting, where it issued "the 8 Special Recommendations" including criminalising terrorist financing and freezing terrorist assets considering it necessary to include anti-terrorist financing measures within the scope of anti-money laundering measures. In 2004, a new item related to the measure to prevent the physical cross-border transportation of funds was added to these recommendations, which made them "the 9 Special Recommendations".

3 Countermeasures to Sophistication of Modus Operandi of Money Laundering

In accordance with development of anti-money laundering measures, the trend of money laundering itself has been changing. The FATF put the highest emphasis in its study on hiding funds using business sectors other than financial institutions. As a result, the FATF revised again in June 2003 "the 40 Recommendations" by extending the scope of operators required to take measures including customer identification etc. The FATF has been studying new methods of money laundering engineered in various countries and regions in the world since then, such as money laundering using new settlement systems, alternative remittance systems, trade-type money laundering, etc. and providing multiple advice on measures through publishing reports and other methods.

## Section2 Anti-Money Laundering Measures in Japan

## 1 | Enforcement of "the Anti-Drug Special Law"

Anti-money laundering measures in Japan have been developed step by step in accordance with initiatives of the international society. Firstly, "the Law Concerning Special Provisions for the Narcotics and Psychotropics Control Law, etc. and Other Matters for the Prevention of Activities Encouraging Illicit Conducts and Other Activities Involving Controlled Substances through International Cooperation" (hereinafter, "the Anti-Drug Special Law") was enforced in