# List of Reference Cases of Suspicious Transaction for Finance Lease Business Operator

## 1 (General Warning)

Listed below are examples of transaction to which business operator, when fulfilling the obligation for reporting of suspicious transactions as specified by Article 9 of Act on Prevention of Transfer of Criminal Proceeds, should pay special attention as a case that may constitute a suspicious transaction. Business operator shall take into account all specific information that it retains on the said transaction, including the customer attributes and circumstances at the time of the said transaction, and thereby judge whether or not respective specific transactions are suspicious transactions.

Therefore, it should be noted that although these example cases serve as a reference when financial institutions find or detect suspicious transactions in day-to-day transactions, all transactions which formalistically conform to any of these cases do not necessarily constitute a suspicious transaction and transactions which do not conform to these cases but are regarded as a suspicious transaction by financial institutions shall be subject to the requirement for the reporting of suspicious transactions; provided, however, that this shall not apply there is a rational reason.

### 2. List of Reference Cases of Suspicious Transaction

(1) Transaction involving a customer who pays excessive high-value finance lease fee (including foreign currencies) relative to scale of operation or asset of customer

(2) Cases where several finance lease contracts are concluded without rational reason within a short term, result in an amount of payment becoming high-value transaction relative to scale of operation or asset of customer

(3) Transaction involving finance lease contract suspected of being concluded under a fictitious name or a borrowed name

(4) Transaction involving finance lease contract whose nominee corporation is suspected of being a paper company

(5) Transaction involving a customer who requests setting up equipment in an unrelated place

(6) Transaction involving a customer who requests setting up equipment, etc. with no rationality for business

(7) Transaction which the price of equipment by supplier (designated by customer) is significantly deficient in rationality compared with fixed price or the current price

(8) Transaction involving finance lease contract where there is suspicion that customer conspires with supplier to defraud finance lease business operator of money despite there is no actual setting up of equipment (so-called "bogus lease")

(9) Transaction involving finance lease contract where there is suspicion that several finance lease contracts concluded in the same equipment, etc. and conspires to defraud money from finance lease business operator (so-called "multiple lease")

(10) Cases where contractor proposes cancellation of contract at an early date or cases where midterm cancellation money is paid

(11) Cases customer changes lease payment from small-value monthly payment into single payment without any rational reasons

(12) Transaction involving a customer who changes frequently account for withdrawing expenses

(13) Cases where payment of detention fee with high value relative to scale of operation or asset of customer without rational explanation

(14) Transaction involving a customer who refuses to provide explanations and submit documents when requested to do so for identification of the actual beneficiary due to doubt as to whether the customer is using facilities, etc. his or her own behalf. The same shall apply to cases where a transaction is conducted by an agent and where there is suspicion that a person other than the customer is the beneficiary.

(15) Despite lack of any rational reason a transaction involving a customer who attaches unduly high importance to transaction confidentiality or a customer who has requested the financial institution not to report his or her transaction or who tries to prevent the financial institution from reporting it by using force or by paying bribes.

(16) A transaction involving a member of an organized crime group or a person associated therewith

(17) A transaction whose circumstances are recognized by employees of the financial institution as unnatural in light of their knowledge and experiences and a transaction involving a customer whose attitude or behavior is recognized as unnatural in light thereof.

(18) Transactions regarding which the Japan Financial Intelligence Center $ (*) $ and other external organizations have inquired or notified the securities company due to the possibility of involving criminal profit

(*) The Japan Financial Intelligence Center (JAFIC) is attached to the Organized Crime Control Department, Criminal Investigation Bureau of the National Police Agency