Silviase/jgov_v1.4_full_ann huggingface dataset:
the disposition of assets that should be confiscated in a prosecuted case in order to prevent the disposition before a court judgment is made. In cases where there is the possibility that an offender who acquired assets that are equivalent to criminal proceeds will detect the start of investigation and dispose of the assets, the judge may prohibit the disposition of the assets upon the request of judicial police officers, etc. even before institution of prosecution for a period of 30 days or less (the period may be renewed upon the request of the prosecutor). Regarding the restraining order for collection of equivalent value, there is a similar provision to that regarding the restraining order for confiscation. (However, only the prosecutor can request a temporary restraining order before institution of prosecution.)

## Paragraph 2 Anti-Drug Special Provisions Law

The Anti-Drug Special Provisions Law was enacted for the purpose of blocking cycles of illegal proceeds derived from drug crimes, directly triggered by the UN New Narcotics Convention adopted in 1988 and the FATF "40 Recommendations" compiled in 1990, and enforced in July 1992. This law contains two items with regard to measures against drug crime proceeds as below. In terms of regulation on drug-related criminal proceeds regulations, this law provides for the following two matters:

### 1. Punishment of Money Laundering (Articles 6 and 7)

The Anti-Drug Special Provisions Law criminalize the acts of disguising facts with respect to the acquisition or disposition of drug-related criminal proceeds and concealing and receiving such proceeds as examples of money laundering.

### 2. Confiscation, Collection of Equivalent Value and Securance Measures (Articles 11 through 13, 19 and 20)

Drug-related criminal proceeds shall be confiscated or the equivalent value thereto shall be collected. The system of confiscation and collection of equivalent value provided in this law is mandatory in principle whereas the system provided in the Act on Punishment of Organized Crimes is discretionary.

Regarding the restraining orders for confiscation and collection of equivalent value, there are provisions similar to those under the Act on Punishment of Organized Crimes.

## Section 3 Recent Legislative Changes

From the AML/CFT perspective, the National Police Agency has made necessary amendments as appropriate to the Act on Prevention of Transfer of Criminal Proceeds and its subordinate decrees in order to adapt to the current AML/CFT environment.
### 1. Amendment of the Act on Prevention of Transfer of Criminal Proceeds

## (1) Amendment of the Act on Prevention of Transfer of Criminal Proceeds in Response to Expansion of Scope of Predicate Offences for Criminal Proceeds

In response to the expansion of the scope of predicate offences for criminal proceeds as a result of the amendment of the Organized Crime Punishment Act, the "Bill to Partially Amend the Act on Punishment of Organized Crimes and Control of Crime Proceeds, etc.," which was proposed to amend the Act on Prevention of Transfer of Criminal Proceeds and include officials of the National Taxation Agency, regional taxation bureaus and tax offices and others who investigate crimes newly added to the list of predicate offences for criminal proceeds on the list of persons who receive information on suspicious transactions was submitted to the 193rd Diet session and passed on June 15, 2017.

The amended Act was promulgated on June 21, 2017 and put into effect on July 11, 2017.

## (2) Amendment of the Act on Prevention of Transfer of Criminal Proceeds in Response to Amendment of the Act on Specified Joint Real Estate Ventures

As a result of the amendment of the Act on Specified Joint Real Estate Ventures, the small-scale real estate specified joint enterprise operator and qualified specially permitted investor limited business operator were added to the types of business operators under the Act on Specified Joint Real Estate Ventures, and the "Bill to Partially Amend the Act on Specified Joint Real Estate Ventures," which was proposed to amend the Act on Prevention of Transfer of Criminal Proceeds and add such business operators to the list of specified business operators under the Act on Prevention of Transfer of Criminal Proceeds, was submitted to the 193rd Diet session and passed on May 26, 2017. The amended Act was promulgated on June 2, 2017 and put into effect on December 1, 2017.

#### 2. Amendment of the Enforcement Order of the Act on Prevention of Transfer of Criminal Proceeds, etc. in Response to the Emergence of Virtual Currencies

## (1) Backgrounds to the amendment

The Leaders' Declaration of the Elmau G7 Summit in June 2015 and the FATF Guidance, etc. demand the inclusion of transactions using virtual currencies in the subjects of the regulations on money laundering, etc. in light of the characteristics of virtual currencies such as a high degree of anonymity and fastness and easiness of funds transfers.

Under such circumstances, regulations on virtual currency exchange service providers, which provide for the registration system thereof and other particulars, were introduced through the amended Payment Services Act in June 2016. Additionally, the Act on Partial Amendment of the Banking Act, etc. to Address Advances in Information Technology and Other Environmental Changes, which intends to add virtual currency exchange service providers in the category of specified business operators through the partial amendment of the Act on Prevention of Transfer of Criminal Proceeds, was promulgated.
As a result of the amendment, the Enforcement Order of the Act on Prevention of Transfer of Criminal Proceeds was amended by the "Cabinet Order on Partial Amendment of the Enforcement Order of the Banking Act, etc." and the Ordinance for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds was amended by the "Order on Partially Amendment of the Ordinance for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds." The Cabinet Order for amendment and Order for amendment were promulgated on March 24, 2017 and put into effect on April 1, 2017 together with the amended Act.

## (2) Key points of the amendment

### A. Provisions concerning Specified Business

The “virtual currency exchange service” was newly added to the list of specified businesses subject to the obligation to report suspicious transactions.

### B. Provisions concerning Specified Transactions

The execution of a contract intended to repeatedly and continuously sell, purchase or exchange virtual currencies, sale, purchase or exchange of virtual currencies of more than 2 million yen and transfer of virtual currencies of more than 100,000 yen performed at the request of a customer were newly added to the list of specified transactions subject to the obligation to verify at the time of transactions.

### 3. Other Points of the Amendment

Under the Enforcement Order of the Act on Prevention of Transfer of Criminal Proceeds, it is provided that verification at the time of transactions is not necessary for transactions with low risk of transfer of criminal proceeds, unless such transactions are suspicious transactions, and that such transactions shall be defined in the Ordinance for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds. However, it was determined to newly add the payment of enrollment fees, etc. for a "higher course" or "specialized course" in specialized training colleges to the transactions defined in the Ordinance for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds, considering that the existence of payers in the transactions is secured.
## Chapter 3

## Efforts of Specified Business Operators and Administrative Authorities to Promote Countermeasures against Money Laundering and Terrorist Financing

In order to effectively implement countermeasures against money laundering, it is critical that every obligation imposed on specified business operators is properly enforced. For this purpose, robust efforts have to be made at the private sector level. JAFIC is working together with relevant competent ministries on providing various outreach programs to support their own efforts by organizing an AML/CFT workshop and posting the latest information on the website.

Importantly, JAFIC would, when there is non-compliance, exercise its supervisory power over the non-compliance in consultation with the supervising administrative authority to issue a rectification order against the specified business operators (except for lawyers) concerned.

## Section 1 Efforts of Specified Business Operators

### 1. Banking Industry

The “Japanese Bankers Association” (hereinafter referred to as “JBA”), of which most of the banks operating in Japan are members, established the “Working Committee on Money Laundering Issues” within the JBA in 1990 and, since then, has been taking AML/CFT measures, such as preparing and providing notices on items to keep in mind regarding CDD and STR filing, preparing and distributing seminar handbooks to members, giving seminars for its members, and so on. Furthermore, the JBA prepares leaflets, posters or the like and carries out PR activities using TVs, newspapers or other mass media to inform customers of CDD procedures. In addition, the JBA is promoting organizational measures on issues related to ML/TF inside or outside of Japan by following, at all times, the development of AML/CFT measures at the FATF, exchanging and sharing information constantly with foreign bankers associations or the like, making responses to the FATF’s mutual evaluations of Japan, and so forth. The JBA has been playing a leading part in the efforts of the banking industry, with “Code of Conduct,” (revised in November, 2013) which provides matters on compliance with laws or regulations including the prevention of ML/TF and confrontation with anti-social forces, and has prompted its members to put such into practice.

### 2. Shinkin Banks (Credit Unions)

As for the credit union industry, in 1997 the National Association of Shinkin Banks established the Shinkin Banks Ethics Program (re-named the Shinkin Banks Action Program in
to its members.

In addition, as part of its effort to promote the severance of relations with anti-social forces, the Association also collects information concerning anti-social forces from the National Center for Removal of Criminal Organizations and has developed a database for industry-wide sharing for members to make inquiries as to whether a certain person is an anti-social force. The operation of the inquiries system started in April 2014.

### 13. Real Estate Industry

In December 2007, the real estate industry established the "Liaison Council for Preventing Transfer of Criminal Proceeds and Preventing Damage by Anti-social Forces in the Real Estate Industry" so that the real estate industry as a whole, can promote collective efforts to prevent the transfer of criminal proceeds and eliminate anti-social forces. It proceeds with taking measures to share the information regarding the operation of systems including the Act on Prevention of Transfer of Criminal Proceeds, through efforts such as agreeing to the development of a responsibility system within relevant business operators, and preparing and distributing brochures etc. for the purpose of enlightenment.

Following the partial amendment of the Act on Prevention of Transfer of Criminal Proceeds in 2014, the Council has updated its handbook for real estate agents and enhanced its FAQ section concerning the outline and implementation of the amended Act.

In addition, the Council invited lawyers and other experts as lecturers and held briefing sessions for members to have them understand actions to be taken in response to the amendment of the Act on Prevention of Transfer of Criminal Proceeds.

### 14. Jewelers and Precious Metals Industry

Japan Jewellery Association, which is comprised of jewelers, etc., is raising members' awareness about the Act on Prevention of Transfer of Criminal Proceeds and issuing alerts. For example, it is posting information related to the Act on Prevention of Transfer of Criminal Proceeds on its website in order to deepen understanding of the legal system.

Meanwhile, the Japan Re-Jewelry Council, which is holding workshops for jewelers in order to foster personnel who will support the secondary jewelry market, requires persons aiming to acquire the qualification of “remodel counselor,” who have advanced capability to provide products which meet customers’ requests, to acquire knowledge concerning the Act on Prevention of Transfer of Criminal Proceeds.

The Japan Gold Metal Association, which is comprised of gold bullion dealers, is raising members' awareness about the Act on Prevention of Transfer of Criminal Proceeds and issuing alerts by providing training regularly in order to deepen their understanding of the legal system.

### 15. Secondhand Goods Dealers and Pawnbrokers

The Federation of Secondhand Goods Dealers Crime Prevention Cooperation Associations in Tokyo, which is the largest group of secondhand goods dealers related to crime prevention in Japan, is raising members' awareness about AML/CFT by indicating in its handbook for
The Federation also performs the following activities to raise awareness of the members, etc. about its efforts made for taking measures to handle money laundering, as well as the details of the Rules and Regulations:

Instruction manuals, e-learning programs and a model format for record-keeping were posted on the members-only website as reference materials concerning the Rules and Regulations to inform the bar associations nationwide about the reference materials. For training members, the "Risk Based Approach Guidance for Legal Professionals" (published in October 2008) and "Money Laundering and Terrorist Financing Vulnerabilities of Legal Professionals" (published in June 2013), which were formulated and published by the FATF, were translated and posted on the members-only website.

In addition, the Federation provides educational materials, including training DVDs and FAQ, to bar associations across the country.

Bar associations hold seminars using these educational materials, etc. on the occasion of twice-yearly training sessions for new lawyers and ethics training sessions in order to raise their awareness about the Rules and Regulations.

The Federation not only held a meeting for persons in charge of the bar associations nationwide in September 2017, but also sent lecturers to each bar association to provide training for understanding the Rules and Regulations from time to time.

### 17. Judicial Scriveners' Associations

Upon extensive consideration of the relation between money laundering countermeasures and the work of judicial scriveners, the Japan Federation of Shio-Shoshi Lawyer's Associations partially revised its "Federation Customer Verification and Record Preservation Criteria" in October 2007. Furthermore, on February 15th, 2008, a resolution was adopted by the Board of Directors to enact the "Regulations on Client Identity Verification." In accordance with this resolution, the Federation informed scrivener associations to emphasize to their members the importance of customer identity verification procedures and record preservation. In addition, on March 18, 2010, the Board of Directors enacted its "Working Policy on Preventing the Transfer of Criminal Proceeds," instructing scrivener associations to inform their members on the subject. The purpose of these efforts is to establish a working policy where scriveners take steps to avoid taking on any responsibility in cases in which there is a risk that their services might be misused for money laundering.

In addition, the Japan Federation of Shio-Shoshi Lawyer's Associations, the Block Judicial Scrivener Associations, and other Judicial Scrivener Associations hold training sessions on the subject for both members and new employees. Since judicial scriveners must verify the personal identity of clients as part of their job duties, this training teaches them how to verify customer identity records and keep transaction records based on the Act on Prevention of the Transfer of Criminal Proceeds.

Since 2014, the Federation has been holding workshops for members with respect to the overview of the Act on Prevention of Transfer of Criminal Proceeds and AML/CFT measures.
### 18. Association of Certified Administrative Procedures Specialists

To facilitate implementation of the initiatives of the Act on Prevention of Transfer of Criminal Proceeds, the Japan Federation of Certified Administrative Procedures Specialists Associations has compiled a handbook entitled “Handbook on Customer Identity Verification under the Act on Prevention of Transfer of Criminal Proceeds,” which has been distributed to all members. In January 2014, the Association also partially revised the “Ethics of Certified Administrative Procedures Specialists,” which specifies the basic approach to the performance of the duties of certified administrative procedures specialists and introduced a provision concerning the verification of the client identification items.

In response to the full enforcement of the Act on Prevention of Transfer of Criminal Proceeds partially amended in 2014, the Association revised and published the new version of the abovementioned Handbook in March 2017, and has been continuously providing related information on its website in order to raise awareness of all members.

As well, the Association and prefectural associations of certified administrative procedures specialists are raising awareness about the verification of the customer's identification items and preservation of records on such verifications and transactions, as well as about the development of account books related to business operations specified by the Administrative Scrivener Act, via workshops for new members and compliance workshops, in light of the Act on Prevention of Transfer of Criminal Proceeds.

### 19. Japanese Institute Certified Public Accountants

The Japanese Institute of Certified Public Accountants disseminates information on AML/CFT in regard to the Act on Prevention of Transfer of Criminal Proceeds through member newsletters and the association website, in order to thoroughly familiarize members with these issues. The Institute also periodically conducts a survey on members in order to grasp the status of members' operations and compliance with obligations such as verification of identification items.

In addition, the association conducts member workshops, in which it provides overviews of the Act on Prevention of Transfer of Criminal Proceeds and AML/CFT.
## Section 2 Collaboration with the Private Sector

## Paragraph 1 AML/CFT Workshop for Information Sharing and Feedback in 2017

### 1. Workshops for Financial Institutions, etc

(1) The National Police Agency jointly held with the Financial Services Agency, the “Suspicious Transaction Reporting Workshop” for banks and other financial institutions, etc. 14 times, at a total of 12 places around the country, from October to November 2017, where they gave feedback learned from case studies of actual investigations involving STR information and advice with regard to key points in performing the reporting work. Moreover, personnel of the National Police Agency visited 64 banks and other financial institutions, etc., across Japan and provided explanations regarding example cases of suspicious transaction reporting and points of attention concerning reporting work.

(2) In June 2017, the National Police Agency sent personnel to briefing sessions held in Tokyo by the Japan Cryptocurrency Business Association for virtual currency exchange service providers to provide explanations concerning the overview, etc. of the Act on Prevention of Transfer of Criminal Proceeds.

(3) In February, July and October 2017, the Ministry of Finance sent personnel to briefing sessions held in three places across the nation held by the Japan Ticket Association, etc. targeting currency exchanging operators to provide explanations concerning the obligations, etc. to be assumed in the course of performance of exchange services under the Act on Prevention of Transfer of Criminal Proceeds.

### 2. Briefing for Credit Card Operators by Individual Visits

From September to October 2017, personnel of the National Police Agency visited four credit card companies across the country individually and explained about the cases in which suspicious transaction reports have been utilized, and points to pay attention to when they submit reports.

### 3. Briefing Sessions for Dealers in Precious Metals and Stones, etc

(1) In September 2017, the Ministry of Economy, Trade and Industry held a briefing session for gold bullion dealers to explain about compliance with laws and regulations under the Act on Prevention of Transfer of Criminal Proceeds, etc. During the briefing session, personnel of the National Police Agency also provided explanations about the overview of the Act, etc.

Additionally, the Ministry started accepting inquiries from business operators by email, in addition to inquiries made by telephone.

(2) In response to a case of smuggling of gold bullion, etc., the National Police Agency sent a letter in June 2017 describing the “sample cases of suspicious transactions in the secondhand goods dealer business (dealers in precious metals and stones),” etc. to en-
courage the performance of the obligation to report suspicious transactions in the secondhand goods dealer business industry and pawnbroker business industry.

In addition, the National Police Agency sent its personnel to a briefing session held by the Japan Ticket Association in Tokyo targeting ticket dealers in October 2017, to explain about the obligations of secondhand goods dealers under the Act on Prevention of Transfer of Criminal Proceeds.

### 4. Briefing Session for Telephone Receiving Service Providers and Telephone Forwarding Service Providers

In March 2017, the National Police Agency sent personnel to briefing sessions held in three places across the country by the Ministry of Internal Affairs and Communications targeting telephone receiving service providers and telephone forwarding service providers, to give explanations about the overview of the Act on Prevention of Transfer of Criminal Proceeds, etc. In addition, in July 2017, the Ministry of Internal Affairs and Communications sent to telephone receiving service providers and telephone forwarding service providers a notification of the overview of the amendment of the Act on Prevention of Transfer of Criminal Proceeds in 2014 and verification items at the time of transactions in order to raise awareness about information that they need to acquire as telecommunications business operators.

### 5. Briefing Sessions for Judicial Scriveners

The National Police Agency dispatched its officers to seminars for judicial scriveners, which were held by the Japan Shiho-Shoshi Lawyer’s Association in Tochigi in July 2017, and provided explanations on the outline of the Act on Prevention of Transfer of Criminal Proceeds.

### 6. Publication of List of Reference Cases of Suspicious Transactions

Competent administrative authorities published the “List of Reference Cases of Suspicious Transactions,” which indicates red flags to which the business operators should pay particular attention to find any suspicious activities behind them when performing the reporting obligation.

### 7. PR on Website

The website of JAFIC has been created within the National Police Agency website, and its annual reports, the current status of JAFIC's activities, and a description of the Act on Prevention of Transfer of Criminal Proceeds are made available for public viewing.

Top page of the website of the National Police Agency

http://www.npa.go.jp

Top page of the website of JAFIC

http://www.npa.go.jp/sosikihanzai/jafic/index.htm