(2005), under which it is aiming for “strict observance with laws, regulations and rules” and 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 a guidebook titled “Preventing Financial Crimes and Issues at the Teller’s Window” in order to provide tellers with correct knowledge concerning the Act and distributed the guidebook as a study material for a seminar on how to verify customer identity and report suspicious transactions. In addition, the Association is raising members’ awareness, through documents, about the outline and expected responses concerning the partial amendment of the Act on Prevention of Transfer of Criminal Proceeds in 2014.

In addition, as an effort to eliminate relationships with anti-social forces, the Association has presented examples of exclusionary clauses on the Boryokudan to be incorporated 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 to show examples that will contribute to severance of relationships with anti-social forces and provided it to members.

### 3. Labor Bank Industry

All labor banks in Japan are members of the National Association of Labour Banks (NALB). NALB has been making efforts to enable appropriate operations of each labor bank by determining that the "Basic Rules of Depositing and Other Administrative Operations" established by the Rokinren Bank in 2014 are the basic rules to be complied with in the whole labor bank industry. Regarding the detailed administrative work related to the prevention of ML/TF to be performed by each labor bank, NALB has developed a system to fully implement countermeasures against ML through serial announcement of statements issued by the FATF, verification at the time of transactions in accordance with the laws and regulations and appropriate reporting on suspicious transactions.

In addition, all labor banks in Japan agreed on the "Labor Banks' Handling Policy for Interrupting Relationships with Anti-Social Forces" in 2014, so as to exclude transactions with anti-social forces. According to the Handling Policy, each labor bank regularly compares information on all customers through a database, and performs a system check to determine whether or not a customer is an anti-social force using the database when a deposit transaction commences or a loan is subsidized.

### 4. 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 has been making efforts to develop relevant systems such as through the dissemination of the statements issued by the FATF and amended list of parties subject to asset freezing,