Japan
Last Updated: 18/03/2008CENTRAL AUTHORITY FOR REPORTING
Japan Financial Intelligence Centre (JFIC)
ARE LAWYERS COVERED BY ANTI- MONEY LAUNDERING LEGISLATION?
Yes, the new anti-money laundering law now applies to lawyers whereas in the past the law only applied to financial services firms.
LAWS REGARDING ANTI-MONEY LAUNDERING PROCEDURES
In March 2008, the government extended the Anti-Organized Crime Law that came into effect in February 2000. The new law has expanded the scope of predicate offences and authorised the JFIC to collect and analyze suspicious transaction reports and disseminate the information to law enforcement agencies.
IN ADDITION TO THESE LAWS, IS THERE ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS CURRENTLY IN PLACE?
No information currently available.
UNDER WHAT CIRCUMSTANCES IS A LAWYER UNDER THE OBLIGATION TO REPORT?
Lawyers were excluded from the suspicious transaction reporting requirements following strong opposition from the Japanese Federation of Bar Associations. [1]
CLIENTS IDENTIFICATION AND VERIFICATION
Lawyers are required to verify their customers' identity when a range of "high-risk" transactions take place, including property transfers and jewellery sales involving more than ¥2m ($19,000). The customer ID records must be kept for a period of seven years.
The Japanese Banking Association also called on banks to conduct enhanced due diligence against lawyers and accountants that manage accounts on behalf of their clients.
LAWYERS PROSECUTED FOR MONEY LAUNDERING OFFENCES
None that we are aware of.
HAS THE FINANCIAL ACTION TASK FORCE (FATF) CONDUCTED A MUTUAL EVALUATION OF THIS COUNTRY, AND, IF SO, WHAT WERE THE FINDINGS CONCERNING LAWYERS’ COMPLIANCE WITH THE FATF 40+9 RECOMMENDATIONS?
This is expected to take place in March 2008.
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Sources
Japan Federation of Bar Associations, www.nichibenren.or.jp/en/
- Helen O’Gorman, “Japan expands AML law ahead of FATF 'mutual evaluation”, 4 March 2008, www.complinet.com.
