September 14 2016
Japan is set to make extensive changes to its anti-money laundering (AML) regime next month, with a range of legislative amendments taking effect on October 1. The changes are designed to address deficiencies identified by the Financial Action Task Force (FATF) and will tighten the focus on account opening for politically exposed persons (PEPs) and banks’ customer due diligence (CDD) processes. The changes aim to bring Japan’s AML regime up to speed with international requirements. The FATF’s mutual evaluation in 2008 and a public statement by the international standard setter in 2014 highlighted Japan’s lack of progress in addressing AML concerns. With the Amendment of the Act on Prevention of Transfer of Criminal Proceeds having been enacted by the Diet — Japan’s parliament — last year, the onus is now on financial institutions to be ready for its implementation on October 1, 2016. The amendment sets out rules for the increased monitoring of suspicious transactions and the reportin