Edited by Sergio Silvestri

Japan is achieving good results in its efforts to combat money laundering and terrorist financing. It has also demonstrated constructive cooperation with counterparts in other countries. Although the risk of terrorist financing in Japan is low, law enforcement must focus more on laundering proceeds in large-scale, complex cases, often involving fraud and drug-related crimes, while also addressing the risks associated with criminal groups, the Boryokudan. These are the issues at the heart of the FATF Mutual Evaluation Report on AML/CFT measures in Japan.

Japan has taken decisive action to address the risks associated with virtual assets and service providers and must now fully implement measures to prevent their abuse. Japanese authorities must also prioritize efforts to improve requirements for financial and non-financial institutions to prevent money laundering and terrorist financing, including customer due diligence, and improve access to beneficial ownership information to prevent the misuse of legal entities and arrangements.

Mutual Evaluation Report Japan 2021

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