the “severance of relationships with anti-social forces”, representing efforts to observe laws and regulations related to the prevention of money laundering and to eliminate transactions made by Boryokudan and other anti-social forces.

On the issue of countermeasures against money laundering, the Association has compiled and distributed a guidebook titled “Preventing Financial Crimes and Issues at the Teller’s Window” in order to provide tellers with correct knowledge concerning the Act. The guidebook is designed as a study material for a seminar on how to verify customer identity and report suspicious transactions. In addition, in response to the partial amendment of the Act on Prevention of Transfer of Criminal Proceeds in 2014, the Association is raising members’ awareness, through documents, about the promulgation of the amended act.

In addition, as an effort to eliminate relationships with anti-social forces, the Association has concluded various agreements incorporating examples of exclusionary clauses on the Boryokudan in such clauses as those on financial trading and deposit transactions. The Association also partially revised their model Articles of Incorporation in 2012 in order to eliminate any anti-social forces from capital contributing members. All Shinkin Banks have completed such revisions by now. In addition, in March 2015, the Association issued a booklet comprising reference materials that contribute to severance of relationships with anti-social forces and provided it to members.

## 3 Credit Cooperatives

In Japan, all credit cooperatives are members of the National Central Society of Credit Cooperatives (NCSCC). To ensure that countermeasures against ML/TF are implemented, NCSCC compiles and provides members with examples of how to verify customer identity and procedures concerning suspicious transaction reports and reference materials for training, thereby recognizing members to ensure appropriate implementation of the procedures. Furthermore, NCSCC compiles posters and leaflets – which are available from the NCSCC website to inform customers about the CDD procedure, and distributes these to members. Besides, regarding the coping with anti-social forces, NCSCC communicated to members reference examples of exclusionary clauses in various agreements concerning loans and deposit transactions, and examples of articles of incorporation to which a provision for excluding anti-social forces from among members was added. It has also been given access to the Japanese Bankers Association's database concerning anti-social forces and has communicated information to members, thereby helping to develop their readiness to exclude anti-social forces from among members. NCSCC also takes thorough steps against ML/TF and on information sharing within the credit cooperative industry, for example by informing members of parties subject to asset freezing as part of countermeasures against terrorist financing.

## 4 Agricultural Cooperatives and Fishery Cooperatives

Regarding the prevention of ML/TF, agricultural cooperatives and fishery cooperatives have developed administrative procedures related to the implementation of verification at the time of transactions, suspicious transaction reporting, etc. based on the Act on Prevention of Transfer of Criminal Proceeds and are holding briefing sessions and training sessions for