FATF calls on Japan to enact adequate anti-money laundering and counter terrorist financing legislation

The FATF is concerned by Japan’s continued failure to remedy the numerous and serious deficiencies identified in its third mutual evaluation report adopted in October 2008, despite Japan’s high-level political commitment.

The most important deficiencies deal with:

  • the incomplete criminalisation of terrorist financing
  • the lack of satisfactory customer due diligence requirements and other obligations in the area of preventive measures applicable to the financial and non-financial sectors
  • the incomplete mechanism for the freezing of terrorist assets, and
  • the failure to ratify and fully implement the Palermo Convention.

The FATF encourages Japan to promptly address these AML/CFT deficiencies, including through the adoption of the necessary legislation. The FATF will continue to monitor Japan’s progress.

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