Financial Action Task Force Releases 2021 Japan Evaluation Report
The G-7's Financial Action Task Force released its Japan Mutual Evaluation Report 2021 along with an executive summary that gives a synopsis of the anti-money laundering and counterterrorist financing (AML/CFT) measures imposed by Japan since November 2019. The report also broke down Japan's compliance with the FATF's 40 recommendations and the effectiveness of the nation's AML/CFT system, along with a fresh set of recommendations.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The report found that Japan imposes targeted financial sanctions with delays, which have been reduced through administrative changes. For instance, Japan has dropped from five to two days implementation delays on United Nations Security Council sanctions updates. Japan has a solid understanding of ML/TF risks, but improvements can clearly be made in areas such as targeted AML/CFT activities in the country's national policies and strategies, the report said. Also, the scope of its terrorist-financing sanctions and nonproliferation sanctions frameworks are unclear since it is not evident whether they extend to indirect transactions involving the designated parties, and domestic transactions involving the designated parties are not clearly banned.