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

(i) Fraud-related crimes (fraud and violations of the Act on Prevention of Transfer of Criminal Proceeds, etc.) totaled 933 cases, the largest number that comprises 85.1% of all cases, which included arrests for bank passbook smuggling, fraudulent receipt of welfare benefits and other benefits, and fraud in relation to sale of concert tickets and contracts for cell phones.

(ii) Illegal stays (violations of the Immigration Control Act) totaled 60 cases, which included cases of foreign nationals who had overstayed, who had worked without working qualifications, or who possessed, sold or purchased forged residence cards.

(iii) 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 42 cases, which included arrests for the possession, assignment and/or receipt, or sale or purchase of illegal drugs by use of internet or delivery services, etc.

(iv) Money laundering offences (violation of the Act on Punishment of Organized Crimes and Control of Crime Proceeds (concealment and receiving of criminal proceeds, etc.) totaled 17 cases, which included arrests for concealment and receiving of criminal proceeds obtained through fraud, loan shark crimes, etc.

(v) Counterfeiting crimes (false entries in the original of an electromagnetic notarized deed and use of such deed, use of forged official documents with seal etc.) totaled 12 cases, which included arrests for sham marriage and opening of a bank account by use of a forged health insurance card, etc.

(vi) Loan sharks (violation of the Money Lending Business Act and the Act Regulating the Receipt of Contributions, Receipt of Deposits and Interest Rates) totaled 11 cases, which included arrests for unregistered money lending business and loan-sharking.

(vii) There were 2 cases of gambling-related offences (habitual gambling, opening and operation of gambling sites for profit), in which arrests were made in connection with organized baseball gambling activity by Boryokudan members.

(viii) There were 4 cases of entertainment business-related offences (distribution of obscene material, etc.), which included sale of obscene DVDs or possession of such DVDs for sales purpose.

(ix) Other criminal offences (theft and extortion) totaled 8 cases, which included arrests for fraudulent cash withdrawal from ATMs using other persons' cash cards obtained through illegal means and extortion arising out of money loans.

(x) Other special criminal offences (violation of the Banking Act or the Financial Instruments and Exchange Act, etc.) totaled 8 cases, which included arrests for unauthorized overseas remittances by foreign residents in Japan in violation of the Banking Act and sale or purchase of share certificates which change the stock price on the market in violation of the Financial Instruments and Exchange Act, etc.
In 2017, there were 22 money laundering offences arrests which were also STR-initiated cases. $ ^{(Note)} $ By predicate offence type, fraud accounted for 54.5% of the total. (See Table 4-4)

Note: STR-initiated ML cases are 17, other STR-initiated predicate offences and ML cases are 5.

Table 4-4 Number of Cases in which STRs Led to Arrests Made for Money Laundering Crimes

Year	2013	2014	2015	2016	2017
Predicate offences
Fraud	6	16	16	10	12
Violation of the Money Lending Business Act	1	1	2	6	3
Operating a gambling site for profit	0	0	0	0	2
Computer fraud	0	0	0	0	2
Distribution of obscene material, etc	0	0	1	2	2
Violation of the Banking Act	3	3	1	2	1
Others	2	5	12	5	0
Total	12	25	32	25	22

In 2017, the number of cases that reached confiscation and collection of equivalent value based on STRs stood at 2 (see Figure 4-5).

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

Year Classification	2013	2014	2015	2016	2017
Confiscation	5	3	5	5	1
Collection of Equivalent Value	(1)	2(2)	1(1)	(2)	1(0)
Total	5(1)	5(2)	6(1)	5(2)	1(0)

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 429,200 in 2017, an increase of 144,286 cases (50.6%) from the previous year (see Table 4-6), reaching a record high.
Table 4-6 Number of STRs Used for Investigative Purposes

Year Classification	2013	2014	2015	2016	2017
Number of STRs used in investigation of initiated cases	3,781	4,608	6,308	5,961	6,344
Number of STRs used in investigation of cases other than the above-mentioned cases	190,063	238,868	259,038	278,953	422,856
Total	193,844	243,476	265,346	284,914	429,200

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 criminal organizations such as Boryokudan by employing various sophisticated and comprehensive analysis methods against STRs in a way, for example, making use of STRs disseminated in the past, information accumulated by police or publicly available information.

These days, JAFIC has been not only clarifying the picture of the actual situation of criminal organizations which repeat activities for obtaining funds using different kinds of methods, but also conducting analysis by focusing on the transactions of virtual currencies with a high degree of anonymity and smuggling of gold, which violates the tax laws, including the Consumption Tax Act, etc. in response to changes in social conditions, in addition to criminal offences related to fraud, criminal offences related to illegal residence and criminal drug offences.

In addition, JAFIC has been actively clarifying the picture of the actual situation of criminal organizations and controlling illegal acts to understand the activities actually performed by criminal organizations for obtaining funds by utilizing results of analysis of information on suspicious transactions and coordinating with investigative authorities, customs, the National Tax Agency, SESC and foreign FlUs.

## Paragraph 3 Utilization of Reports by National Investigative Authorities

### 1. The Public Prosecutor's Offices

STRs are shared among public prosecutor’s offices nationwide and 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, and for 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, thus striving to take thorough frontline measures for preventing such crimes.

### 4. The National Tax Agency

The National Tax Agency shares information on suspicious transactions with regional tax bureaus nationwide and utilizes the information to investigate tax evasion crimes by analyzing information on suspicious transactions, as well as other data and information collected by the regional tax bureaus.

### 5. 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 to find and expose persons who try to smuggle gold bullion by hiding it in their clothes. Customs takes strong initiatives to stop smuggling of items such as ones that may threaten public safety and security.

### 6. 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 and fund flows, etc. When doing so, it actively uses STR in order to identify the facts of the offences.
# 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 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 Violation of the Act on Prevention of Transfer of Criminal Proceeds in 2017

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 2017 was 2,581 cases, an increase of 602 cases (30.4%) 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	2013	2014	2015	2016	2017
Transfer etc. of savings passbooks (business)	18	19	25	29	27
Transfer etc. of savings passbooks	1,570	1,584	1,559	1,902	2,523
Soliciting the transfer of passbooks, etc.	17	14	16	42	31
Transfer of foreign exchange cards, etc.	0	33	19	2	0
Others	0	1	0	4	0
Total	1,605	1,651	1,619	1,979	2,581

## Section 2 Cleared Cases of Money Laundering in 2017

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

### 1. Number of Cleared Cases

There were 353 cases cleared of money laundering under the Act on Punishment of Organized Crimes in 2017, consisting of 2 cases of management control through illicit proceeds, 240 cases of concealment of criminal proceeds, $ ^{(Note)} $ and 111 cases of receipt of criminal proceeds. The total number of cases represented a decrease of 27 case (7.1%) 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	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
Management Control through Illicit Proceeds (Article 9)	1(1)	0(0)	1(0)	1(0)	0(0)	2(0)	1(1)	2(0)	0(0)	2(0)
Concealment of Criminal Proceeds etc. (Article 10)	134(41)	172(49)	139(46)	150(43)	158(27)	171(35)	180(26)	234(43)	268(45)	240(22)
Receipt of Criminal Proceeds etc. (Article 11)	38(21)	54(41)	65(44)	92(38)	80(28)	99(40)	112(28)	145(46)	112(25)	111(24)
Total	173(63)	226(90)	205(90)	243(81)	238(55)	272(75)	293(55)	381(89)	380(70)	353(46)

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 136, followed by 103 cases of fraud, 24 cases of computer fraud and 22 cases of illegal loaning, etc.

### 2. Modus Operandi of Money Laundering Observed in Cleared Cases

## (1) Examples of Management Control through Illicit Proceeds

Predicate offences of management control through illicit proceeds that occurred in 2017 were violation of the Banking Act and fraud. In all of the cases, the status as an incorporator was obtained when companies were established using criminal proceeds from predicate offences, etc. (Note) to exercise power, etc. as an incorporator and select directors of the companies.

Note: Criminal proceeds or drug crime proceeds, or assets obtained by retaining or disposing of such criminal proceeds or deposit of such assets and other assets (Article 2, paragraph (2), item (i) or (iii) and Article 9 of the Organized Crime Punishment Act, and each item of Article 2, paragraph (2) of the Act concerning Special Provisions for the Narcotics and Psychotropics Control Act.)

### 【Case 1】Management control through illicit proceeds by use of illegal proceeds, etc. related to a fraud case

An unemployed man obtained the status as an incorporator using part of the illegal proceeds swindled from a victim under the pretext of contributions to purchase shares issued when a stock company was established, selected himself as a representative director, and caused a district legal affairs bureau to register the incorporation of the company. He was arrested for violation of the Organized Crime Punishment Act (management control through illicit proceeds).

(Miyazaki, in July)

## (2) Examples of Concealment of Criminal Proceeds

Instances of concealment of criminal proceeds in 2017 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, hiding criminal proceeds in a warehouse under a contract executed in the name of another person, and more.

## [Case 2] Concealment of criminal proceeds related to a computer fraud case

A male office worker purchased virtual currency using an account and credit card information of another person, which were obtained illegally. He changed the currency to Japanese yen through an overseas exchange website and transferred the money to a bank account in the name of another person. He was arrested for violation of the Act on Punishment of Organized Crimes (concealment of criminal proceeds).

(Metropolitan Police Department, in January)
## 【Case 3】 Concealment of criminal proceeds related to a theft case

A man working for a trading company concealed a stolen car in a warehouse in a container yard under a contract executed in the name of another person, knowing that the car had been stolen. He was arrested for concealment of stolen items and violation of the Act on Punishment of Organized Crimes (concealment of criminal proceeds).

(Saitama, in March)

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

When selling a stolen car, an unemployed man placed the vehicle number of another car on the stolen car and exported it to a foreign country through an export management company which did not know that the car had been stolen. He was arrested for violation of the Act on Punishment of Organized Crimes (concealment of criminal proceeds). (Hokkaido, in February)

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

In the cases on receipt of criminal proceeds which were cleared in 2017, there are cases where offenders received criminal proceeds 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 a case of theft

A male office worker received some cash, knowing that it had been illegally withdrawn from an ATM by unemployed men using a forged card as compensation for acting as an intermediary for the unemployed men. He was arrested for violation of the Act on Punishment of Organized Crimes (receipt of criminal proceeds).

(Ehime, in February)

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

A male office worker received information on electronic money by email from a fraud group member knowing that the information was obtained illegally. He was arrested for violation of the Act on Punishment of Organized Crimes (receipt of criminal proceeds). (Metropolitan Police Department, in October)

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

There were a total of 46 cases cleared of money laundering related to Boryokudan (including Boryokudan members, associates, and other related parties) in 2017, consisting of 22 cases of concealment of criminal proceeds, and 24 cases of receipt of criminal proceeds. This
number accounts for 13.0% of all cases cleared of money laundering under the Act on Punishment of Organized Crimes in 2017.

In each type of case of money laundering related to Boryokudan, there were 19 fraud cases, 8 cases of theft, 4 cases of gambling, 3 cases of extortion, and 3 cases of prostitution, etc. This indicates that Boryokudan commit money laundering by a variety of predicate offences.

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

Looking at the cases of concealment of criminal proceeds, there were 6 cases of fraud, and 5 cases of theft, and 3 cases of gambling. 2 cases of violation of the Trademark Act, and 2 cases of extortion, etc.

The modus operandi is that criminal proceeds obtained by fraud, etc. 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 a fraud case by a senior member of Boryokudan affiliated to Kyosei-kai

A senior male Boryokudan member affiliated to the Kyosei-kai illegally obtained cell phones, etc. from a distributor of cell phones, etc., sold them using identification documents of other persons and transferred the proceeds to accounts opened in the names of other persons, which were managed by him. He was arrested for violation of the Act on Punishment of Organized Crimes (concealment of criminal proceeds).

(Hiroshima, in January)

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

Cleared cases of receipt of criminal proceeds consisted of 13 fraud cases, and 3 cases each for theft and prostitution.

Cases included receipt of proceeds obtained through prostitution as protection money to the gangster organizations, providing an indication of how Boryokudan earn profit through the power or force of the organization.

## 【Case 8】Receipt of criminal proceeds related to a case of violation of the Anti-Prostitution Act by a member of Boryokudan affiliated to Rokudaime Yamaguchi-gumi

A male Boryokudan member affiliated to Rokudaime Yamaguchi-gumi received cash as protection money from a female manager, etc. of an entertainment shop while knowing that the money was paid from proceeds obtained through provision of a place for prostitution. He was arrested for violation of the Act on Punishment of Organized Crimes (receipt of criminal proceeds).

(Osaka, in March)
### 4. Money Laundering conducted by Foreign Visitors to Japan

In cleared cases of money laundering under the Act on Punishment of Organized Crimes in 2017, there were 27 cases related to foreign visitors to Japan, representing 7.6% of all cases, which consist of 20 cases of concealment of criminal proceeds and 7 cases of receipt of criminal proceeds.

Looking at the predicate offences of the cases of money laundering related to foreign visitors to Japan, there were 11 cases of theft, and 7 cases of computer fraud, etc. 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 and sale of stolen items, etc. under false names.

## 【Case 9】 Concealment of criminal proceeds related to a theft case

A female Chinese national residing in Japan sold watches stolen from apartment residents by presenting a health insurance card under another person's name. She was arrested for violation of the Act on Punishment of Organized Crimes (concealment of criminal proceeds).

(Metropolitan Police Department, in March)

## Paragraph 2 Cleared Cases of Money Laundering under the Anti-Drug Special Provisions Law

The total number of cleared cases of money laundering under the Anti-Drug Special Provisions Law in 2017 was 8 cases, unchanged from the previous year (see Table 5-3).

In some cases, money laundering is artfully committed for funds acquired through drug offences such as smuggling of stimulants, in which purchasers' payments are deposited into a bank account under the name of another party. $ ^{(Note)} $

Note: Drug criminal proceeds are comprised of drug criminal proceeds and proceeds stemming from drug offence proceeds, or a mix of said proceeds and other funds. (Article 2, Paragraph 3 to 5 of the Anti-Drug Special Provisions Law).

Table 5-3 Number of Arrests Made for Money Laundering under the Anti-Drug Special Provisions Law

Year Category	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
Concealment of drug-related criminal proceeds etc. (Article 6)	10 (4)	5 (1)	8 (4)	8 (3)	8 (2)	6 (6)	5 (3)	5 (3)	5 (4)	7 (3)
Receipt of drug-related criminal proceeds etc. (Article 7)	2 (1)	5 (3)	1 (1)	0 (0)	3 (2)	4 (4)	2 (2)	3 (2)	3 (2)	1 (1)
Total	12 (5)	10 (4)	9 (5)	8 (3)	11 (4)	10 (10)	7 (5)	8 (5)	8 (6)	8 (4)

Note: Each number in brackets represents the number of cases conducted by Boryokudan gangsters.