Japan

Member since 1990

Since the 2021 assessment of Japan's measures to tackle money laundering and terrorist financing, the country has taken a number of actions to strengthen its framework.

Today, Japan is compliant on 4 Recommendations and largely compliant on 29. The country remains partially compliant on 6 Recommendations.  Japan will report back to the FATF on progress achieved in improving the implementation of its AML/CFT measures in October 2024.

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

23 Oct 2023

As a result of Japan’s progress in strengthening its measures to fight money laundering and terrorist financing since the assessment of the country’s framework, the FATF has re-rated the country on five Recommendations.
Read the report
Head of delegation

Lead Ministry/Authority in the FATF Delegation

Ministry of Finance

Also member of

Observer of

The Financial Action Task Force and the Asia-Pacific Group on Money Laundering assessed Japan’s AML/CFT system. The Mutual Evaluation Report of Japan is a comprehensive review of the effectiveness of Japan’s measures and their level of compliance with the FATF Recommendations.

The report concluded that Japan’s measures to combat money laundering and terrorist financing are delivering results. Japan has demonstrated good results in understanding, identifying and assessing its money laundering and terrorist financing risks, in the collection and use of financial intelligence and in the cooperation with its international partners. However, the country needs to prioritise efforts in certain areas, including the supervision of and preventive measures by financial institutions and designated non-financial businesses and professions, the prevention of misuse of legal persons and arrangements, and investigating and prosecuting money laundering and terrorist financing.

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
Mutual Evaluation of Australia-2015

Ratings

Technical Compliance

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

Japan - Follow-Up Report 2023

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
PC
R.8 - Non-profit organisations
PC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
LC
R.11 - Record keeping
LC
R.12 - Politically exposed persons
PC
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
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
PC
R.23 - DNFBPs: Other measures
PC
R.24 - Transparency and beneficial ownership of legal persons
LC
R.25 - Transparency and beneficial ownership of legal arrangements
PC
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

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Japan - Mutual Evaluation 2021

IO1
SE
IO2
SE
IO3
ME
IO4
ME
IO5
ME
IO6
SE
IO7
ME
IO8
ME
IO9
ME
IO10
ME
IO11
ME

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness

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