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

Publication details

Language
Country

Japan

Follow-Up Report Japan - 2024

Filename
Follow-Up-Report-Japan-2024.pdf
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898 KB
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Paris, 10 October 2024 - Since the 2021 assessment of Japan's measures to tackle money laundering and terrorist financing and the 2022 and 2023 Follow-Ups, the country has taken a number of actions to strengthen its framework.

In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the action it has taken since their mutual evaluation. 

Consequently, to reflect Japan's progress, the FATF has now re-rated the country on 6 Recommendations:

  • Recommendation 7 is re-rated from partially compliant to largely compliant
  • Recommendation 8 is re-rated from partially compliant to largely compliant
  • Recommendation 12 is re-rated from partially compliant to largely compliant
  • Recommendation 22 is re-rated from partially compliant to largely compliant
  • Recommendation 23 is re-rated from partially compliant to largely compliant
  • Recommendation 25 is re-rated from partially compliant to largely compliant

Today, Japan is compliant on 4 Recommendations and largely compliant on 35. The country has no Recommendations rated partially compliant.

Japan will next report back on remaining deficiencies in its 5th round mutual evaluation. 

 

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