Japan's progress in strengthening measures to tackle money laundering and terrorist financing

Publication details

Language

English

Country

Japan

Follow-Up Report Japan - 2023

Filename
Japan-FUR-2023.pdf
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993 KB
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application/pdf
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23 October 2023 - Overall, Japan has made progress in addressing technical compliance deficiencies identified in its MER and has been upgraded on the following Recommendations

  • Recommendation 5 is re-rated from Partially Compliant to Largely Compliant
  • Recommendation 6 is re-rated from Partially Compliant to Largely Compliant
  • Recommendation 8 is re-rated from Non Compliant to Partially Compliant
  • Recommendation 24 is re-rated from Partially Compliant to Largely Compliant
  • Recommendation 28 is re-rated from Partially Compliant to Largely Compliant
  • Recommendation 25 is maintained at Partially Compliant

Japan has 4 Recommendations rated Compliant, 29 recommendations rated Largely Compliant and 6 Recommendations rated Partially Compliant.

Japan will report back to the FATF on progress achieved in improving the implementation of its AML/CFT measures in October 2024.

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Japan - Follow-Up Report 2024

missOrigin

R.1 - Assessing risk & applying risk-based approach
LC
R.2 - National cooperation and coordination
LC
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
LC
R.5 - Terrorist financing offence
LC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
LC
R.8 - Non-profit organisations
LC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
LC
R.11 - Record keeping
LC
R.12 - Politically exposed persons
LC
R.13 - Correspondent banking
LC
R.14 - Money or value transfer services
LC
R.15 - New technologies
LC
R.16 - Wire transfers
LC
R.17 - Reliance on third parties
N/A
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
LC
R.20 - Reporting of suspicious transactions
LC
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
LC
R.23 - DNFBPs: Other measures
LC
R.24 - Transparency and beneficial ownership of legal persons
LC
R.25 - Transparency and beneficial ownership of legal arrangements
LC
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
LC
R.28 - Regulation and supervision of DNFBPs
LC
R.29 - Financial intelligence units
C
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
LC
R.33 - Statistics
LC
R.34 - Guidance and feedback
LC
R.35- Sanctions
LC
R.36 - International instruments
LC
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

Earlier reports

Japan's measures to combat money laundering and terrorist financing

30 Aug 2021

Japan’s measures to combat money laundering and terrorist financing are delivering results, but the country needs to prioritise efforts in certain areas to improve the effectiveness of the Japanese anti-money laundering and counter terrorist financing (AML/CFT framework.
Read more

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