Japan to Fully Enforce AML Law on March 1

The Japanese government decided at Tuesday's cabinet meeting to fully enforce the money laundering prevention law on March 1.

Currently, the law obliges financial institutions to notify regulative authorities of transactions that are seen linked to illegal money and terrorist funds and to confirm customers' identities.

From March, similar obligations will be applied to other businesses such as realtors, jewel traders and private mail box management firms. Professionals like judicial scriveners and certified public accountants will only need to check customers' identities.

Identification with publicly issued cards like drivers' licenses will be required in land transactions, trading in jewelry worth 2 million yen or more and concluding contracts to use private mail boxes. Transaction records must be kept for seven years.

Violators of the law may face up to two years in jail or a fine of up to 3 million yen. Negligent companies will be fined maximum 300 million yen.

The National Police Agency refrained from imposing on lawyers the report obligation because of a strong backlash from the Japan Federation of Bar Associations.END

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