Figure 1-1 History of AML/CFT Measures

Global Events
December 1988	Adoption of UN New Narcotics Convention (Criminalization of money laundering activities related to illegal proceeds derived from drug crimes)
July 1989	Arch Summit (Establishment of the FATF (Financial Action Task Force on Money Laundering))
April 1990	FATF issued the 40 Recommendations - Customer identification by financial institutions - Reporting of suspicious transactions to financial regulatory authorities
June 1996	FATF revised the 40 Recommendations - Extending the scope of predicate offences to serious crimes became compulsory.
May 1998	Birmingham Summit (Agreement on establishment of FIU)
September 2001	Terrorist attacks in the US
October 2001	FATF issued its 8 Special Recommendations - Criminalization of terrorist financing, reporting of suspicious transactions related to terrorism.
June 2003	FATF re-revised the 40 Recommendations - Application of recommendations to non-financial businesses (real estate agents, dealers in precious metals, dealers in precious stones, etc.) and professions (lawyers, accountants, etc.)
October 2004	FATF revised its 8 Special Recommendations to make 9 Special Recommendations - Measures were added to prevent physical movement of funds across borders
October 2008	FATF announced the results of the Third Mutual Evaluation of Japan - Nine categories, including CDD, were given the "NC" rating
February 2012	FATF revised its 40 Recommendations and 9 Special Recommendations - FATF integrated both into New 40 Recommendations

## Events in Japan

June 1990
The Ministry of Finance issued an order to financial organizations (requiring financial institutions to verify customer identity)
July 1992
Enforcement of the Anti-Drug Special Provisions Law (Criminalization of money laundering related to drug crimes, establishment of suspicious transaction reporting system)
February 2000
Enforcement of the Act on Punishment of Organized Crimes (Expansion of scope of predicate offences to include other serious crimes, establishment of Japanese FLU at the Financial Supervisory Agency)
July 2002
Enforcement of the Act on Punishment of Financing of Offences of Public Intimidation and the revised Act on Punishment of Organized Crime (addition of terrorist funding and collection etc. to list of predicate offences)
January 2003
Enforcement of the Customer Identification Act (Obligation of customer identification by financial institutions etc. is legislated.)
December 2004
The Headquarters for the Promotion of Measures Against Transnational Organized Crime and International Terrorism decided on the Action Plan for Prevention of Terrorism.
November 2005
The Headquarters for the Promotion of Measures Against Transnational Organized Crime and International Terrorism decided on the development of laws for implementation of the FATF Recommendations
March 2007
Adoption of the Act on Prevention of Transfer of Criminal Proceeds
April 2007
Partial enforcement of the Act on Prevention of Transfer of Criminal Proceeds Transfer of the function of FIU (from the Financial Services Agency to the National Public Safety Commission / the National Police Agency)
March 2008
Full enforcement of the Act on Prevention of Transfer of Criminal Proceeds (Enforcement of the customer identification obligation etc. to DNFBPs)
April 2010
Enforcement of partial revision of the Act on Prevention of Transfer of Criminal Proceeds in tandem with the enactment of the Act on Settlement of Funds (addition of funds transfer companies to the list of specified business operators etc.)
April 2011
Enactment of the amended Act on Prevention of Transfer of Criminal Proceeds
May 2011
Partial enforcement of the amended Act on Prevention of Transfer of Criminal Proceeds (increase in penalties for illicit transfer of savings passbooks)
April 2013
Full enforcement of the Act on Prevention of Transfer of Criminal Proceeds (Addition of matters to be verified during transactions, addition of measures to ensure accuracy of verifications during transactions, addition of more specified business operators)