Silviase/jgov_v1.4_full_ann huggingface dataset:
The following describes each type of the violation.

(ii) Fraud-related crimes (fraud and violations of the Act on Prevention of Transfer of Criminal Proceeds) totaled 895 cases, the largest number that comprises 81.7% of all cases, which included arrests for bank passbook smuggling, fraud over online auctions, fraudulent receipt of welfare benefits, loan fraud cases involving financial institutions as victims and so forth.

(iii) Illegal stays (violations of the Immigration Control Act) totaled 68 cases, which included cases of foreign nationals who had overstayed or who had worked without working qualifications.

(iv) Drug crimes (violation of the Stimulants Control Act and the Act Concerning Special Provisions for the Narcotics and Psychotropics Control Act for the Prevention of Activities Encouraging Illicit Conducts and Other Activities Involving Controlled Substances through International Cooperation) totaled 38 cases, which included arrests for the possession and/or smuggling of stimulants, etc.

(v) Counterfeiting crimes (false entries in the original of an electromagnetic notarized deed and use of such deed, counterfeiting private documents, use of counterfeiting private documents and related fraud, uttering counterfeit official documents bearing a seal or signature and related fraud) totaled 32 cases, which included arrests for fraud related to deposit and savings accounts using forged identification documents, and sham marriage.

(vi) Money laundering offenses (violation of the Act on Punishment of Organized Crimes and Control of Crime Proceeds (concealment and receiving of criminal proceeds) totaled 23 cases, which included arrests for concealment and receiving of criminal proceeds obtained through fraud, loan shark crimes, etc..

(vii) Loan sharks (violation of the Money Lending Business Act and the Act Regulating the Receipt of Contributions, Receipt of Deposits and Interest Rates) totaled 6 cases, which included arrests for unregistered business operation and loan-sharking.

(viii) There were four cases of extortion, in which Boryokudan members were arrested for extortion of protection money.

(ix) There were four cases of entertainment business-related offenses (distribution of obscene material, violations of the Act on Control and Improvement of Amusement Business, etc., which included possession of obscene DVDs for sales purpose and entertainment business-related offenses in areas where the operation of entertainment business outlets is prohibited.

(x) Underground banking (violation of the Banking Act) totaled 4 cases, which included arrests for unauthorized overseas remittances by foreign residents in Japan in violation of the Banking Act.

(xi) Offenses related to labor affairs (Worker Dispatching Act) totaled 4 cases, which included the dispatch of workers for engagement in construction work in violation of the Worker Dispatching Act.

(xii) Theft totaled 3 cases, which included fraudulent cash withdrawal from ATMs using a cash card that had been obtained through ID theft.
(xiii) There were two cases of gambling-related offenses (opening and operation of gambling sites for profit), in which arrests were made in connection with gambling activity by Boryokudan members.

In 2015, there were 32 money laundering offense arrests which were also STR-initiated cases, of which in addition to the above 23 cases, there were another 9 arrests for STR-initiated predicate offenses which finally led to an arrest for money laundering as well. By predicate offense type, fraud accounted for 50.0% of the total. (See Table 4-4)

Table 4-4 The number of cases in which STRs led to arrests made for money laundering crimes

Year	2011	2012	2013	2014	2015
Predicate offenses
Fraud	9	7	6	16	16
Violation of Investment Deposit and Interest Rate Act	1	0	0	1	4
Violation of the Money Lending Business Act, Investment Deposit and Interest Rate Act	3	3	1	0	3
Violation of the Money Lending Business Act	1	1	1	1	2
Pharmaceutical Affairs Act	0	0	0	0	2
Distribution of obscene objects	1	0	0	0	1
Extortion	0	0	0	0	1
Violation of the Banking Act	0	0	3	3	1
Companies Act	0	0	0	0	1
Violation of the Worker Dispatching Act	0	0	0	0	1
Others	2	4	1	4	0
Total	17	15	12	25	32

$ ^{*} $ The figures concerning the Pharmaceutical Affairs Act represent cases in which the act was applied before its name was changed as a result of the enforcement of the Act to Partially Amend the Pharmaceutical Affairs Act, etc. (Act No. 84 of 2013) on November 25, 2014.

In 2015, the number of cases that reached confiscation and collection of equivalent value based on STRs stood at 4 (see Figure 4-5).

Table 4-5 Number of Cases that Reached Confiscation and Collection of Equivalent Value Based on STRs

Year Classification	2011	2012	2013	2014	2015
Confiscation	5	8	5	1	3
Collection of Equivalent Value	1(4)	(5)	(1)	2(2)	1(1)
Total	6(4)	8(5)	5(1)	5(2)	4(1)

Note 1: The numbers in brackets are the number of cases that fall under both “confiscation” and “collection of equivalent value” cases. These numbers are not included in the numbers in the “confiscation” columns.

2: The years show the years in which arrests were made.
In the investigations not initiated with STRs, STRs are still a valuable source of information used by Prefectural Police in countering organized crime.

The number of STRs used for investigation by Prefectural Police was 265,346 in 2015, an increase of 21,870 cases (9.0%) from the previous year (see Table 4-6).

Table 4-6 Number of STRs Used for Investigative Purposes

Year Classification	2011	2012	2013	2014	2015
Number of STRs used in investigation of initiated cases	2,674	3,811	3,781	4,608	6,308
Number of STRs used in investigation of cases other than the abovementioned cases	103,103	184,510	190,063	238,868	259,038
Total	105,777	188,321	193,844	243,476	265,346

Note 1: The number of STRs used in investigation of initiated cases shows the number of such information used when making an arrest.

Note 2: In cases where an investigation was started using STRs but did not lead to an arrest, said STRs are counted as STRs used in investigation of cases other than the abovementioned cases.

JAFIC tries to have a clear picture of fund movement resulting from illicit activities of anti-social forces such as Boryokudan by employing various sophisticated and comprehensive analysis methods against STRs in a way, for example, linking separated STRs by customer IDs indicating identical particulars and making use of information accumulated by police or publicly available information.

To date, JAFIC has come to recognize the fact that anti-social forces were involved in the legitimate financial services behind affiliated businesses, or repeatedly conducted a large amount of cross border wire transfers.

Although it can be assumed that sources of the funds handled by anti-social forces originate mainly from criminal activities, in most cases, the connection with the predicate offenses is obscured by sophisticated fund manipulation creating considerable layers of fund operation. Its recent study showed that anti-social forces managed to cover up the true nature behind affiliated businesses and engaged in fund management in consultation with experts of that area, and thus it has been made quite difficult to locate the financing activity of anti-social forces.

JAFIC is taking strong initiatives to combat anti-social forces, coordinating various cooperative works with investigative authorities, customs, SESC or foreign FLUs.

## Paragraph 3 Utilization of Reports by National Investigative Authorities

## 1 The Public Prosecutor's Offices

STRs are used in cases sent by investigative authorities as well as in conducting secret investigation. STRs are useful for identifying criminal facts in investigating further crimes and
accomplices in the context of their utilization such as for corroborating statements by offenders and associated parties and identifying bank accounts suspected of use in crime. STRs are also used for a wide range of activities, including monitoring the flow of funds of Boryokudan and other crime organizations and examining the actual state of organized crime.

## 2 The Narcotics Control Department

The Health, Labour and Welfare Ministry’s Narcotics Control Department utilizes STRs in order to obtain identification information concerning offenders and other relevant people in relation to investigation of narcotics smuggling and keep track of the transfer of criminal proceeds in addition, it utilizes STRs in a wide range of other activities, including investigations of smuggling cases involving foreign suspects, which have been increasing in recent years.

## 3 The Japan Coast Guard

The Japan Coast Guard utilizes STRs to analyze the relationship with those which are reported to bear a high risk of committing a crime, as well as to promote the prevention of organized smuggling of restricted items and immigrants.

It also utilizes foreign Flu information provided through the National Public Safety Commission and the National Police Agency at its request for investigations into such smuggling organizations.

## 4 Customs

Customs makes a database of STRs, which is shared between customs offices across the country. STRs can be used for investigations on violation of the Customs Act by associating them with various types of information obtained individually by customs offices. Customs takes strong initiatives to stop smuggling of items such as ones that may threaten public safety and security.

## 5 The Securities and Exchange Surveillance Commission (SESC)

SESC conducts investigations into malicious activities which harm the fairness of transactions including financial instrument transactions, such as fraudulent securities reports (fraudulent accounting), insider trading, market manipulation and other fraudulent means. In investigations of criminal cases, SESC independently identifies and analyzes relevant accounts or securities accounts. When doing so, it actively uses STR in order to identify the facts of the offenses.
## Chapter 5

# Crackdown on Money Laundering

In order to take effective anti-money laundering measures, it is essential to understand the scale and modus operandi of money laundering.

In Japan, money laundering is criminalized as follows: the control of management of enterprises of legal persons and other entities through illicit proceeds (Article 9), the concealment of criminal proceeds (Article 10) and the receipt of criminal proceeds (Article 11) which are all stipulated in the Act on Punishment of Organized Crimes, and also the concealment of drug-related criminal proceeds (Article 6) and the receipt of drug-related criminal proceeds (Article 7) both stipulated in the Anti-Drug Special Provisions Law. They include typical money laundering activities such as transferring criminal proceeds to a certain place so that these proceeds would not be traceable and depositing criminal proceeds in a bank account under the name of another person, although all the activities to transfer criminal proceeds are not yet covered.

In addition, penalties for the violation of supervision mechanisms issued by competent administrative authorities to specified business operators (excluding lawyers) and penalties for the transfer or receiving of bank account passbooks are stipulated in the Act on Prevention of Transfer of Criminal Proceeds.

The anti-money laundering achievements in Japan can be grasped to some extent by looking into the number of cleared cases related to money laundering and the amounts of criminal proceeds confiscated.

## Section 1 Arrests made for the violation of the Act on Prevention of Transfer of Criminal Proceeds in 2015

The Act on Prevention of Transfer of Criminal Proceeds stipulates penalties to ensure the effectiveness of supervisory mechanisms put in place by the competent administrative authorities over specified business operators (excluding lawyers) and penalties on the trade of savings passbooks, and the police are enhancing its efforts to crack down on such practices. Numerous money laundering crimes involve the illicit use of savings passbooks and foreign exchange cards, etc. in the name of another party. The number of arrests made for the illicit transfer of savings passbooks in 2015 was 1,619 cases, a decrease of 32 cases (1.9%) from the previous year (see Table 5-1).
Table 5-1 Number of punishments made under the Act on Prevention of Transfer of Criminal Proceeds

Year	2011	2012	2013	2014	2015
Transfer etc. of savings passbooks (business)	18	32	18	19	25
Transfer etc. of savings passbooks (non-business)	1,221	1,487	1,570	1,584	1,559
Soliciting the transfer of passbooks, etc.	22	24	17	14	16
Transfer of foreign exchange cards, etc.	0	0	0	33	19
Others	0	1	0	1	0
Total	1,261	1,544	1,605	1,651	1,619

## Section 2 Cleared Cases of Money Laundering in 2015

## Paragraph 1 Cleared Cases of Money Laundering under the Act on Punishment of Organized Crimes

## 1 Number of Cleared Cases

There were 381 cases cleared of money laundering under the Act on Punishment of Organized Crimes in 2015, consisting of 2 cases of management control through illicit proceeds, 234 cases of concealment of criminal proceeds (note), and 145 cases of receipt of criminal proceeds. The total number of cases represented an increase of 88 cases (30.0%) from the previous year. (See Table 5-2)

(Note) Criminal proceeds means proceeds from criminal activities, assets deriving from criminal proceeds, or assets mixed with other assets.

Table 5-2 Number of Arrests Made for Money Laundering under the Act on Punishment of Organized Crimes

Year	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015
Management Control through Illicit Proceeds (Article 9)	1 (0)	0 (0)	1 (1)	0 (0)	1 (0)	1 (0)	0 (0)	2 (0)	1 (1)	2 (0)
Concealment of Criminal Proceeds etc. (Article 10)	91 (18)	137 (35)	134 (41)	172 (49)	139 (46)	150 (43)	158 (27)	171 (35)	180 (26)	234 (43)
Receipt of Criminal Proceeds etc. (Article 11)	42 (35)	40 (25)	38 (21)	54 (41)	65 (44)	92 (38)	80 (28)	99 (40)	112 (28)	145 (46)
Total	134 (53)	177 (60)	173 (63)	226 (90)	205 (90)	243 (81)	238 (55)	272 (75)	293 (55)	381 (89)

Note: Each number in brackets represents the number of cases conducted by Boryokudan gangsters.
Looking at the types of money laundering crimes under the Act on Punishment of Organized Crimes, the number of theft cases was the highest at 127, followed by 102 cases of fraud, 27 cases of illegal loaning, 19 cases of unauthorized entertainment business, and 15 cases of habitual gambling and running a gambling place for profit.

## 2 Modus Operandi of Money Laundering observed in Cleared Cases

## (1) Management control with funds of illicit proceeds

The cases of management control through illicit proceeds in 2015 had violations of the Act Regulating the Receipt of Contributions, Receipt of Deposits and Interest Rates and the Trademark Act as the predicate offense. In both of these cases, offenders arranged for acquaintances to obtain the position of an originator when founding stock companies with illicit proceeds (Note) gained through the predicate offense and to be appointed as board directors of the companies by having them exercise their authority as the originator.

(Note) "Illicit proceeds" refers to proceeds from criminal activities, including drug-related ones, assets deriving therefrom and such assets mixed with other assets (Article 2(2)(i) and (iii) and Article 9 of the Act on Punishment of Organized Crimes and each item of Article 2(2) of the Anti-Drug Special Provisions Law.

[Case 1] Management control with funds of illegal proceeds related to violation of the Act Regulating the Receipt of Contributions, Receipt of Deposits and Interest Rates

An unemployed man, aiming to found a stock company using a portion of illegal proceeds totaling billions of yen, collected through illegal means from members across Japan, remitted funds equivalent in amount to that portion of the illegal proceeds to an acquaintance's account and had the acquaintance and others pay for shares issued when the company was founded using the said funds. Through this means, the unemployed man, with the aim of obtaining the management control of the company himself, arranged for the acquaintance and others to obtain the position of an originator, to be appointed as board directors of the company at the time of foundation and to make foundation registration of the company at a regional legal affairs bureau by exercising their authority as the originator. As a result, the unemployed man was arrested for violating the Act on Punishment of Organized Crimes (management control through illicit proceeds).

(Kyoto, in January)

## (2) Examples of Concealment of Criminal Proceeds

Instances of concealment of criminal proceeds in 2015 consisted largely of cases in which offenders attempted to transfer funds to bank accounts under the name of other persons. This is a major form of infrastructure used in money-laundering crimes. In addition, criminals use various methods to keep investigative authorities off the track, including selling stolen items using a false name, disguising reasons with respect to acquiring criminal proceeds, and more.
## [Case 2] Concealment of criminal proceeds related to violation of the Act on Control and Improvement of Amusement Business, etc

A man managing entertainment business outlets was managing multiple hostess clubs without authorization and arranged for around ¥85 million in revenue from the clubs to be remitted to accounts opened in other persons' names. As a result, the man was arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds) (Osaka, in May)

## [Case 3] Concealment of criminal proceeds related to violation of the Pharmaceutical Affairs Act

A male executive of a company and others sold dangerous drugs, which are pharmaceuticals, under false product names, to general customers without authorization via cash on delivery post and arranged for employees of Japan Post and others remit funds totaling ¥3.1 million in sales revenue to accounts opened in the name of a company managed by the executive and others. As a result, the executive and others were arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds). (Miyagi, in March)

$ ^{*} $ The Pharmaceutical Affairs Act was applied before its name was changed as a result of the enforcement of the Act to Partially Amend the Pharmaceutical Affairs Act, etc. (Act No. 84 of 2013) on November 25, 2014.

## 【Case 4】 Concealment of criminal proceeds related to a theft case

A man who is an employee of an organization concealed around ¥80,000 in cash, which had been stolen by him from the office where he was working, in the tank of the office’s flush toilet after placing the money in a vinyl package. As a result, the man was arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds). (Saitama, in July)

## (3) Examples of Receipt of Criminal Proceeds etc

In the cases on receipt of criminal proceeds which were cleared in 2015, there are cases where offenders received criminal proceeds derived from theft, fraud and violation of the Act on Control and Improvement of Amusement Business, etc. through bank transfer and purchase of stolen items, which shows these criminal proceeds can be transferred to other individuals in diverse ways.
## 【Case 5】Receipt of criminal proceeds related to corporate embezzlement

An unemployed man received around ¥4.9 million, which had been embezzled by his sister from the company she worked for, by arranging her to remit the funds to his own account under the guise of a loan repayment while knowing of the embezzlement. As a result, the man was arrested for violating the Act on Punishment of Organized Crimes (receipt of criminal proceeds). (Hiroshima, in March)

## 【Case 6】Receipt of criminal proceeds related to a theft case

A man who was a contract worker received around ¥17,000 in cash from an acquaintance in exchange for driving a car for him while knowing the money was paid from funds obtained through the sale of construction materials stolen by him from a housing construction site. As a result, the man was arrested for violating the Act on Punishment of Organized Crimes (receipt of criminal proceeds). (Metropolitan Police Department, in April)

## 3 Money Laundering Cases related to Boryokudan (General name for Japanese gangster organizations)

There were a total of 89 cases cleared of money laundering related to Boryokudan (including Boryokudan members, associates, and other related parties) in 2015, consisting of 43 cases of concealment of criminal proceeds, and 46 cases of receipt of criminal proceeds. This number accounts for 23.4% of all cases cleared of money laundering under the Act on Punishment of Organized Crimes in 2015.

In each type of case of money laundering related to Boryokudan, there were 24 fraud cases, 14 cases of loan-sharking, and 11 cases of theft. This indicates that Boryokudan commit money laundering by a variety of predicate offenses.

## (1) Examples of Means of Concealment of Criminal Proceeds by Boryokudan

Looking at the cases of concealment of criminal proceeds by Boryokudan in 2015, there were 11 cases each of loan-sharking and fraud and 5 cases of theft.

The most significant modus operandi is that criminal proceeds obtained by loan-sharking are concealed in a bank account opened in another party's name and that proceeds obtained through theft and other crimes are sold under false names.

## 【Case 7】Concealment of criminal proceeds related to violation of the Money Lending

Business Act by a senior member of Boryokudan, Godaime Kudo-kai and others

A male senior member of Godaime Kudo-kai who were engaging in loan-sharking and others arranged for borrowers to remit a total of around ¥45 million in loan repayments to multiple accounts opened in the names of other persons. As a result, they were arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds). (Fukuoka, in July)
[Case 8] Concealment of criminal proceeds related to violation of the Act on Control and Improvement of Amusement Business, etc. by a senior member of Boryokudan, Rokudaime Yamaguchi-gumi and others

A senior member of Rokudaime Yamaguchi-gumi and others were managing a hostess club without authorization and arranged for around ¥4.8 million in revenue to be remitted to an account opened in the name of another person. As a result, they were arrested for violating the Act on Punishment of Organized Crimes (concealment of criminal proceeds) (Osaka, in May)

## (2) Examples of Receipt of Criminal Proceeds related to Boryokudan

Cleared cases of receipt of criminal proceeds by Boryokudan in 2015 consisted of 13 fraud cases, 7 prostitution cases and 6 theft cases.

Cases of receipt of criminal proceeds included receipt of proceeds obtained through fraud, protection money and a contribution to the gangster organizations, providing an indication of how Boryokudan earn profit through the power or force of the organization.

【Case 9】Receipt of criminal proceeds related to violation of the Anti-Prostitution Act by a member of Boryokudan, Rokudaime Yamaguchi-gumi

A male member of Rokudaime Yamaguchi-gumi received ¥30,000 in cash as protection money from a male company employee and others while knowing that the money was paid from funds obtained through prostitution brokerage. As a result, the male member was arrested for violating the Act on Punishment of Organized Crimes (receipt of criminal proceeds). (Hokkaido, in June)

## 4 Money Laundering conducted by Foreign Visitors to Japan

In cleared cases of money laundering under the Act on Punishment of Organized Crimes in 2015, there were 34 cases related to foreign visitors to Japan, representing 8.9% of all cases.

Looking at these 34 cases, there were 16 cases of concealment of criminal proceeds and 18 cases of receipt of criminal proceeds. Looking at the predicate offenses, there were 16 cases of theft, and 11 cases of fraud. It can be seen that criminals of foreign nationalities operating in Japan use various methods to carry out money laundering, including the use of bank accounts in Japan made in the names of other parties.