Japanese authorities have a good understanding of money laundering and terrorism financing risks, but certain areas of their AML/CFT framework could be further improved, according to an evaluation report published Monday by the Financial Action Task Force (FATF) and Asia-Pacific Group on Money Laundering.
According to the report, Japan’s key money laundering risks relate to activities of organized crime groups. These activities include drug trafficking, theft, loan sharking, gambling, and prostitution; illegal remittances and transfers involving foreigners; and specialized types of fraud, including extortion. Japan’s terrorist financing risks, while low, relate to activities of Islamic extremists associated with the Islamic State of Iraq and the Levant, Al Qaida, and other groups.
