measures, and establishment of measures such as obligations to conduct customer identification and the report of suspicious transactions by financial institutions.

## 2 Anti-Money Laundering Measures as Countermeasures against Organized Crime

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 international organized crimes was considered 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 also 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 be extended from drug crimes to serious crimes.

Further, at the Birmingham Summit in May 1998, it was agreed by the participating countries to create, in each country, FlUs (Financial Intelligence Units), which are dedicated to collecting, arranging, and analyzing money laundering information, and to disseminating the information to investigative authorities, etc. as a measure to utilize the suspicious transaction reports for criminal investigation effectively. Egmont Group, established in 1995 as a forum for exchanging information between FlUs, defines an FlU as a "central, national agency responsible for receiving, analyzing and disseminating to the competent authorities, disclosures of financial information: (1) concerning suspected proceeds of crime and potential financing of terrorism, or (2) required by national legislation or regulation, in order to combat money laundering and terrorist financing".

## 3 Countermeasures Against Terrorist Financing

Anti-terrorism measures are similar to anti-money laundering measures in several ways: preventive measures are particularly important; it is critical to intercept terrorist organization financing and to clarify fund supply routes; and the circumstances require international cooperation.

Based on the concepts noted above, the International Convention for the Suppression of the Financing of Terrorism, adopted in December 1999, requires signatory countries to have mechanisms in place to criminalize terrorist financing and collection of funds for terrorism; to confiscate terrorist finances; to verify customer identity by financial institutions, and to report on suspicious transactions.

Later, in response to the terrorist attacks on the U.S. in September 2001, the FATF held an emergency session in October of the same year, when it issued “The 8 Special Recommendations,” at which time it included anti-terrorist financing measures as part of its mission, as well as criminalizing terrorist financing and freezing terrorist assets as an international standard for fighting terrorist financing. In 2004, a new recommendation 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”.