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ASIA · EASTERN ASIA

Japan

FATF public-list status No FATF public-list status
Assessment network
Profile Changed 2026-10-13
Profile sections

Overview

Regulatory TimelineTrack FATF / FSRB and FIU-network participation alongside FATF public-list status and national regulatory activity over time.
FATFGlobal standard setter
Member · since 1990
APGRegional / assessment body
Member · since 27.02.1997
Egmont GroupFIU network
FIU member · since 2000
FATF public-list status & assessments
Not publicly listed · 2 assessment milestones
Local regulatory activity
21 local changes
19892000201020202026
Regulatory history timeline
Bars show verified participation periods. Diamonds mark MER / FUR assessment milestones. FATF public-list bands show status history. Local markers show regulatory changes, with marker size reflecting change density.
Jurisdiction framework
AML FrameworkNational / regional framework

The Act on Prevention of Transfer of Criminal Proceeds is Japan’s central preventive AML/CFT statute, built on earlier 1992 and 2000 reforms and repeatedly expanded to additional specified business operators and new technologies.

FATF Recommendations remain the international baseline; the cited national or regional framework controls the legal obligation.
CDD & Beneficial OwnershipCustomer / entity controls

Customer and beneficial-owner verification requirements are embedded in the preventive framework, with corporate and supervisory reforms addressing beneficial-ownership transparency after FATF findings.

Ownership, control, verification, PEP/EDD and registry rules are jurisdiction-specific. A 25% beneficial-ownership threshold is not a universal AML rule.
Monitoring & ReportingOngoing controls and FIU reporting

Specified business operators conduct transaction verification, keep records and submit suspicious transaction reports through the JAFIC framework. Sector supervisors issue detailed AML/CFT guidelines.

Monitoring, screening, periodic review, escalation and suspicious reporting should be read against the applicable supervisor and primary rule.

Compliance Calendar2

Event-driven obligations
1
Requirement Suspicious Transaction Report
Authority / Report toCompetent administrative authority; reports are collected/analyzed within Japan’s JAFIC framework
Deadline / triggerReport without avoidable delay in accordance with the statutory/competent-authority framework; no universal numeric day-count is asserted in mapped sources.

Requirement

Subject scope
Specified business operators within the Act on Prevention of Transfer of Criminal Proceeds and applicable sector rules.
Trigger
Facts giving rise to suspicion under the statutory suspicious-transaction reporting duty.
Filing channel
Sector/authority reporting route; exact electronic channel varies and is not shown as one general value.

Impact

Consequences of non-compliance
Failure to comply can lead to competent-authority supervisory or statutory action; no single penalty figure is generalised.
Enforcement authority
Competent administrative authority / JAFIC framework
Operational impact
Maintain escalation procedures capable of prompt competent-authority reporting and preserve sector-specific submission instructions.
Ongoing obligations
1
Requirement
Banking / Credit InstitutionsSecurities / InvestmentInsurance
Risk-based AML/CFT controls and monitoring
Authority / Report toFinancial Services Agency (FSA)
Deadline / triggerOngoing; no single external filing date.

Requirement

Sector scope
Banking / Credit InstitutionsSecurities / InvestmentInsurance
Subject scope
Financial institutions supervised under the FSA AML/CFT framework.
Trigger
Continuous while conducting regulated business.
Filing channel
Internal policies, risk assessment, monitoring and governance; regulatory submission only where specifically required.

Impact

Consequences of non-compliance
Control deficiencies may lead to FSA supervisory measures and other action under the applicable financial-services laws.
Enforcement authority
Financial Services Agency
Operational impact
Treat risk assessment, CDD, monitoring, governance and training as standing controls with documented review cycles.

Authorities & FIU7

Authority / issuing bodyNational AML/CFT evidence chain
AuthorityDiscussion Paper on validation of effectiveness of AML/CFT frameworksFinancial Services Agency (Japan) · REPORT / PUBLICATIONFSA AML/CFTFinancial Services Agency (Japan) · OFFICIAL SOURCEJAFICJapan Financial Intelligence Center (JAFIC) · INSTITUTIONAL / REFERENCEJAFIC legal materialsJapan Financial Intelligence Center (JAFIC) · GUIDANCEJAFIC — AML/CFT legal framework historyJapan Financial Intelligence Center (JAFIC) · LAW / REGULATIONTravel Rule under Japan’s crypto-asset AML frameworkFinancial Services Agency (Japan) · GUIDANCE
Law / regulationJAFIC — AML/CFT legal framework historyJapan Financial Intelligence Center (JAFIC) · LAW / REGULATIONe-Gov lawse-Gov laws · LAW / REGULATION
Guidance / materialDiscussion Paper on validation of effectiveness of AML/CFT frameworksFinancial Services Agency (Japan) · REPORT / PUBLICATIONJAFIC legal materialsJapan Financial Intelligence Center (JAFIC) · GUIDANCETravel Rule under Japan’s crypto-asset AML frameworkFinancial Services Agency (Japan) · GUIDANCEJapan · FATF country profileFinancial Action Task Force (FATF) · ASSESSMENT / PROFILE
UpdatesJapan implements crypto-asset Travel Rule obligations2023 · New ruleHigh-value electronic prepaid instruments and payment services expansion2022-06 · AmendmentCrypto-asset terminology and scope update2019-05 · AmendmentCasino operators added as specified business operators2018-07 · AmendmentVirtual currency exchange operators added to AML/CFT perimeter2016-05 · AmendmentAmendment strengthening transaction verification and suspicious transaction controls2014-11 · AmendmentAmendment to the Act on Prevention of Transfer of Criminal Proceeds2011-04 · AmendmentOrganized Crime Punishment Act expands predicate offences and financial intelligence functions2000 · AmendmentJapan introduces core money-laundering controls and suspicious-transaction reporting1992 · New rule
Authority / issuing bodyJapan Financial Intelligence Center (JAFIC)
Jurisdiction updatesRegulatory updates

FATF Assessment

FATF Compliance & Effectiveness
Technical Compliance40 FATF Recommendations
Ratings updated 2024-10 · via FUR

Measures how fully the jurisdiction has implemented FATF’s technical requirements. It does not measure practical effectiveness.

C4Compliant

Requirements met.

LC35Largely compliant

Only minor shortcomings.

PC0Partially compliant

Moderate shortcomings.

NC0Non-compliant

Major shortcomings.

NA1Not applicable

The requirement does not apply because of structural, legal or institutional features of the jurisdiction.

Effectiveness11 Immediate Outcomes
Ratings from MER 2021-08

Measures whether the AML/CFT system achieves its intended results in practice. Follow-up reports do not normally replace these ratings.

HE0High effectiveness

The outcome is achieved to a very large extent; only minor improvements are needed.

SE3Substantial effectiveness

The outcome is achieved to a large extent; moderate improvements are needed.

ME8Moderate effectiveness

The outcome is achieved to some extent; major improvements are needed.

LE0Low effectiveness

The outcome is not achieved, or only to a negligible extent; fundamental improvements are needed.

Explore 40 FATF RecommendationsSee every Technical Compliance rating and what it means.
C · CompliantRequirements met.
LC · Largely compliantOnly minor shortcomings.
PC · Partially compliantModerate shortcomings.
NC · Non-compliantMajor shortcomings.
N/A · Not applicableThe requirement does not apply because of structural, legal or institutional features of the jurisdiction.
AML/CFT Policies and Coordination
R.1
Assessing Risks and Applying a Risk-Based Approach
LCLargely compliantOnly minor shortcomings.
R.2
National cooperation and coordination
LCLargely compliantOnly minor shortcomings.
Money Laundering and Confiscation
R.3
Money laundering offence
LCLargely compliantOnly minor shortcomings.
R.4
Confiscation and provisional measures
LCLargely compliantOnly minor shortcomings.
Terrorist Financing and Financing of Proliferation
R.5
Terrorist financing offence
LCLargely compliantOnly minor shortcomings.
R.6
Targeted financial sanctions related to terrorism & terrorist financing
LCLargely compliantOnly minor shortcomings.
R.7
Targeted financial sanctions related to proliferation
LCLargely compliantOnly minor shortcomings.
R.8
Non-profit organisations
LCLargely compliantOnly minor shortcomings.
Preventive Measures
R.9
Financial institution secrecy laws
CCompliantRequirements met.
R.10
Customer due diligence
LCLargely compliantOnly minor shortcomings.
R.11
Record keeping
LCLargely compliantOnly minor shortcomings.
R.12
Politically exposed persons
LCLargely compliantOnly minor shortcomings.
R.13
Correspondent banking
LCLargely compliantOnly minor shortcomings.
R.14
Money or value transfer services
LCLargely compliantOnly minor shortcomings.
R.15
New technologies
LCLargely compliantOnly minor shortcomings.
R.16
Wire transfers
LCLargely compliantOnly minor shortcomings.
R.17
Reliance on third parties
N/ANot applicableThe requirement does not apply because of structural, legal or institutional features of the jurisdiction.
R.18
Internal controls and foreign branches and subsidiaries
LCLargely compliantOnly minor shortcomings.
R.19
Higher-risk countries
LCLargely compliantOnly minor shortcomings.
R.20
Reporting of suspicious transactions
LCLargely compliantOnly minor shortcomings.
R.21
Tipping-off and confidentiality
CCompliantRequirements met.
R.22
DNFBPs: Customer due diligence
LCLargely compliantOnly minor shortcomings.
R.23
DNFBPs: Other measures
LCLargely compliantOnly minor shortcomings.
Transparency and Beneficial Ownership of Legal Persons and Arrangements
R.24
Transparency and beneficial ownership of legal persons
LCLargely compliantOnly minor shortcomings.
R.25
Transparency and beneficial ownership of legal arrangements
LCLargely compliantOnly minor shortcomings.
Powers and Responsibilities of Competent Authorities and Other Institutional Measures
R.26
Regulation and supervision of financial institutions
LCLargely compliantOnly minor shortcomings.
R.27
Powers of supervisors
LCLargely compliantOnly minor shortcomings.
R.28
Regulation and supervision of DNFBPs
LCLargely compliantOnly minor shortcomings.
R.29
Financial intelligence units
CCompliantRequirements met.
R.30
Responsibilities of law enforcement and investigative authorities
CCompliantRequirements met.
R.31
Powers of law enforcement and investigative authorities
LCLargely compliantOnly minor shortcomings.
R.32
Cash couriers
LCLargely compliantOnly minor shortcomings.
R.33
Statistics
LCLargely compliantOnly minor shortcomings.
R.34
Guidance and feedback
LCLargely compliantOnly minor shortcomings.
R.35
Sanctions
LCLargely compliantOnly minor shortcomings.
International Cooperation
R.36
International instruments
LCLargely compliantOnly minor shortcomings.
R.37
Mutual legal assistance
LCLargely compliantOnly minor shortcomings.
R.38
Mutual legal assistance: freezing and confiscation
LCLargely compliantOnly minor shortcomings.
R.39
Extradition
LCLargely compliantOnly minor shortcomings.
R.40
Other forms of international cooperation
LCLargely compliantOnly minor shortcomings.
Explore 11 Immediate OutcomesSee how FATF rates whether the AML/CFT system works in practice.
HE · High effectivenessThe outcome is achieved to a very large extent; only minor improvements are needed.
SE · Substantial effectivenessThe outcome is achieved to a large extent; moderate improvements are needed.
ME · Moderate effectivenessThe outcome is achieved to some extent; major improvements are needed.
LE · Low effectivenessThe outcome is not achieved, or only to a negligible extent; fundamental improvements are needed.
IO1
Risk understanding & national coordination

Money laundering and terrorist financing risks are understood and, where appropriate, actions co-ordinated domestically to combat money laundering and the financing of terrorism and proliferation.

SESubstantial effectivenessThe outcome is achieved to a large extent; moderate improvements are needed.
IO2
International cooperation

International co-operation delivers appropriate information, financial intelligence, and evidence, and facilitates action against criminals and their assets.

SESubstantial effectivenessThe outcome is achieved to a large extent; moderate improvements are needed.
IO3
AML/CFT supervision

Supervisors appropriately supervise, monitor and regulate financial institutions, DNFBPs and VASPs for compliance with AML/CFT requirements commensurate with their risks.

MEModerate effectivenessThe outcome is achieved to some extent; major improvements are needed.
IO4
Preventive measures & suspicious reporting

Financial institutions, DNFBPs and VASPs adequately apply AML/CFT preventive measures commensurate with their risks, and report suspicious transactions.

MEModerate effectivenessThe outcome is achieved to some extent; major improvements are needed.
IO5
Beneficial ownership transparency

Legal persons and arrangements are prevented from misuse for money laundering or terrorist financing, and information on their beneficial ownership is available to competent authorities without impediments.

MEModerate effectivenessThe outcome is achieved to some extent; major improvements are needed.
IO6
Use of financial intelligence

Financial intelligence and all other relevant information are appropriately used by competent authorities for money laundering and terrorist financing investigations.

SESubstantial effectivenessThe outcome is achieved to a large extent; moderate improvements are needed.
IO7
Money laundering investigation & prosecution

Money laundering offences and activities are investigated and offenders are prosecuted and subject to effective, proportionate and dissuasive sanctions.

MEModerate effectivenessThe outcome is achieved to some extent; major improvements are needed.
IO8
Confiscation & asset recovery

Proceeds and instrumentalities of crime are confiscated.

MEModerate effectivenessThe outcome is achieved to some extent; major improvements are needed.
IO9
Terrorist financing investigation & prosecution

Terrorist financing offences and activities are investigated and persons who finance terrorism are prosecuted and subject to effective, proportionate and dissuasive sanctions.

MEModerate effectivenessThe outcome is achieved to some extent; major improvements are needed.
IO10
Terrorist financing prevention & NPO protection

Terrorists, terrorist organisations and terrorist financiers are prevented from raising, moving and using funds, and from abusing the NPO sector.

MEModerate effectivenessThe outcome is achieved to some extent; major improvements are needed.
IO11
Proliferation financing financial sanctions

Persons and entities involved in the proliferation of weapons of mass destruction are prevented from raising, moving and using funds, consistent with the relevant UNSCRs.

MEModerate effectivenessThe outcome is achieved to some extent; major improvements are needed.
Official FATF consolidated ratings · 2013 Methodology

Regulatory Timeline50

LOCAL changes 21
GLOBAL milestones 29
National history from1989
20265 events
06.08.2026
LOCALAmendmentFinancial Services AgencyBanking / Credit InstitutionsPayments / EMI / Money Transfer
Japan introduces temporary AML identity-verification relief following the 2026 Kumamoto earthquake

On 6 August 2026 Japan promulgated and brought into force special provisions under the Regulation for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds in response to the 2026 Kumamoto earthquake. Cash remittances of up to JPY 2 million for earthquake donations to donation-only accounts are excluded from transaction-verification obligations, and affected customers who cannot use ordinary identification methods may temporarily be verified by declaration.

Effective 06.08.2026Open update ↗
17.07.2026
LOCALGuidance
Japan FSA revises AML/CFT/CPF guidelines for certified public accountants and audit firms

On 17 July 2026 Japan’s Financial Services Agency published the results of its May–June consultation and revised supervisory guidance for certified public accountants and audit corporations to address money laundering, terrorist financing and proliferation financing. The FSA explicitly sets the application date of the guidelines and related notices at 17 July 2026. The revisions add proliferation-financing considerations to the existing professional AML/CFT supervisory framework.

Effective 17.07.2026Open update ↗
07.07.2026
LOCALAmendmentFinancial Services AgencyCrypto / VASP / CASPPayments / EMI / Money Transfer
Japan expands the foreign-jurisdiction scope of its cryptoasset and stablecoin Travel Rule

On 7 July 2026 the Financial Services Agency finalized a partial amendment to the country/region designation under Articles 17-2 and 17-3 of the Order for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds. The amendment adds five jurisdictions to the scope of Japan’s Travel Rule requirements for transfers of cryptoassets and electronic payment instruments to foreign VASPs.

Effective 03.08.2026Open update ↗
26.06.2026
LOCALFuture effectiveFinancial Services AgencyBanking / Credit Institutions
Japan promulgates AML rule changes for inter-bank sharing and use of suspicious-account information

On 26 June 2026 Japan’s Financial Services Agency published and promulgated an order partially amending the Regulation for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds together with supervisory-guideline amendments. The changes introduce efforts obligations for deposit-taking financial institutions to provide relevant information on accounts believed to be used, or at risk of being used, for crime or transfer of criminal proceeds to other deposit-taking institutions, and to organize and analyse received information and take necessary preventive measures.

Effective 01.04.2027Open update ↗
31.03.2026
LOCALGuidanceFinancial Services AgencyBanking / Credit InstitutionsPayments / EMI / Money Transfer
Revision of Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism

Japan’s Financial Services Agency revised its AML/CFT Guidelines and the related FAQs on 31 March 2026 to promote maintenance and enhancement of financial institutions’ AML/CFT frameworks.

Effective not specifiedOpen update ↗
20252 events
18.06.2025
GLOBALGlobal standardPayment transparencyFATFBanking / Credit InstitutionsPayments / EMI / Money Transfer
FATF updates Standards on Recommendation 16 on Payment Transparency

FATF revised Recommendation 16 to standardise payment information and strengthen fraud/error controls in cross-border payments.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Published 18.06.2025 · Future-effective global standard · Country implementation is separateOpen update ↗
25.02.2025
GLOBALGlobal standardRisk-based approach / financial inclusionFATF
FATF updates Standards and consults on guidance to better promote financial inclusion

FATF amended Recommendation 1 and related interpretive material to strengthen proportionality and simplified measures under the risk-based approach.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 25.02.2025 · Country implementation/status is separateOpen update ↗
20233 events
27.10.2023
GLOBALGlobal standardAsset recoveryFATF
FATF strengthens global asset-recovery and confiscation standards

FATF revised Recommendations 4, 30, 31 and 38 and related interpretive material to make asset recovery a stronger operational priority, expand tools to trace and confiscate criminal property and improve domestic and international cooperation.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 27.10.2023 · Country implementation/status is separateOpen update ↗
24.02.2023
GLOBALGlobal standardBeneficial ownershipFATF
FATF strengthens beneficial-ownership transparency for trusts and legal arrangements

At its February 2023 Plenary FATF revised Recommendation 25 and its Interpretive Note to strengthen transparency and beneficial-ownership requirements for trusts and similar legal arrangements, complementing the 2022 strengthening of Recommendation 24 for legal persons.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 24.02.2023 · Country implementation/status is separateOpen update ↗
2023
LOCALNew ruleFinancial Services Agency JapanCrypto / VASP / CASPPayments / EMI / Money Transfer
Japan implements crypto-asset Travel Rule obligations

Crypto-asset service providers become subject to information-transmission duties for covered transfers under the amended preventive framework.

Effective 2023Open update ↗
20222 events
2022-06
LOCALAmendmentFinancial Services AgencyBanking / Credit InstitutionsPayments / EMI / Money Transfer
High-value electronic prepaid instruments and payment services expansion

Japan expanded AML/CFT coverage to additional electronic payment and high-value prepaid instrument activities.

Effective 2023-06Open update ↗
04.03.2022
GLOBALGlobal standardBeneficial ownershipFATF
FATF Recommendation 24 — beneficial ownership of legal persons

FATF strengthened Recommendation 24 on beneficial ownership transparency for legal persons.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 04.03.2022 · Country implementation/status is separateOpen update ↗
20202 events
23.10.2020
GLOBALGlobal standardPFFATF
FATF requires proliferation-financing risk assessment and mitigation

FATF amended Recommendations 1 and 2 and their Interpretive Notes so countries and covered private-sector entities must identify, assess and mitigate risks of breaches, non-implementation or evasion of proliferation-related targeted financial sanctions.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 23.10.2020 · Country implementation/status is separateOpen update ↗
02.07.2020
GLOBALSupervisory standardSupervisory cooperation
Basel Committee strengthens cooperation between prudential and AML/CFT supervisors

The Basel Committee revised its ML/TF risk-management guidelines to add principles for information exchange and cooperation between prudential and AML/CFT supervisors in authorisation, ongoing supervision and enforcement.

COUNTRY APPLICABILITYNon-binding global benchmark

A Basel supervisory publication does not become domestic law merely because it is GLOBAL. National adoption, supervisory use or incorporation must be evidenced by a LOCAL milestone or source.

Basel Committee on Banking Supervision ↗
Global supervisory benchmark · 02.07.2020 · Domestic adoption is separateOpen update ↗
20192 events
21.06.2019
GLOBALGlobal standardVirtual assets / Travel RuleFATF
FATF adopts the R.15 Interpretive Note and applies the Travel Rule framework to VASPs

FATF adopted detailed implementation requirements for virtual assets and VASPs in June 2019, including the application of wire-transfer information requirements commonly described as the Travel Rule. This operationalised the virtual-asset perimeter introduced through the 2018 Recommendation 15 revision.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 21.06.2019 · Country implementation/status is separateOpen update ↗
2019-05
LOCALAmendmentFinancial Services AgencyBanking / Credit InstitutionsPayments / EMI / Money Transfer
Crypto-asset terminology and scope update

Japan updated the legal framework for crypto-assets and associated regulated activity.

Effective 2020-05Open update ↗
20182 events
19.10.2018
GLOBALGlobal standardVirtual assets / VASPsFATF
FATF Recommendation 15 is revised for virtual assets and VASPs

In October 2018 FATF revised Recommendation 15 and added the definitions of virtual asset and virtual asset service provider, formally bringing virtual-asset activity into the global AML/CFT standards architecture. Detailed implementation requirements followed in 2019.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 19.10.2018 · Country implementation/status is separateOpen update ↗
20161 event
2016-05
LOCALAmendmentFinancial Services AgencyBanking / Credit InstitutionsPayments / EMI / Money Transfer
Virtual currency exchange operators added to AML/CFT perimeter

Japan amended the framework to bring virtual-currency exchange service providers under AML/CFT obligations.

Effective 2017-04Open update ↗
20142 events
2014-11
LOCALAmendmentFinancial Services AgencyBanking / Credit InstitutionsPayments / EMI / Money Transfer
Amendment strengthening transaction verification and suspicious transaction controls

Japan adopted amendments strengthening customer/transaction verification and other AML/CFT controls.

Effective 2016-10Open update ↗
15.01.2014
GLOBALSupervisory standardBank supervision
Basel Committee integrates ML/TF risk into banks’ overall risk-management framework

The Basel Committee issued Sound management of risks related to money laundering and financing of terrorism, superseding its 2001 CDD and 2004 consolidated KYC papers and integrating ML/TF risk management with prudential supervisory expectations.

COUNTRY APPLICABILITYNon-binding global benchmark

A Basel supervisory publication does not become domestic law merely because it is GLOBAL. National adoption, supervisory use or incorporation must be evidenced by a LOCAL milestone or source.

Basel Committee on Banking Supervision ↗
Global supervisory benchmark · 15.01.2014 · Domestic adoption is separateOpen update ↗
20121 event
16.02.2012
GLOBALGlobal standardAML/CFT/CPF standardsFATF
International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation

FATF adopted a consolidated revised set of 40 Recommendations integrating AML, CFT and proliferation-financing safeguards.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 16.02.2012 · Country implementation/status is separateOpen update ↗
20111 event
2011-04
LOCALAmendmentFinancial Services AgencyBanking / Credit InstitutionsPayments / EMI / Money Transfer
Amendment to the Act on Prevention of Transfer of Criminal Proceeds

Japan amended the Act to strengthen customer-verification and related preventive requirements.

Effective 2013-04Open update ↗
20081 event
01.03.2008
LOCALNew rule
Japan’s cross-sector preventive AML framework enters full operation

The remaining provisions of the Act on Prevention of Transfer of Criminal Proceeds took effect on 1 March 2008. This completed the transition to the modern cross-sector customer-verification, record-keeping and suspicious-transaction reporting framework.

Effective 01.03.2008Open update ↗
20072 events
2007-04
LOCALNew rule
JAFIC is established and Japan’s FIU function moves to the National Police Agency

Partial enforcement in April 2007 transferred the FIU function from the Financial Services Agency to the National Police Agency and established JAFIC. This is an institutional transition, not the full commencement of the Act’s preventive obligations.

Effective 2007-04Open update ↗
2007-03
LOCALNew rule
Japan adopts the Act on Prevention of Transfer of Criminal Proceeds

Japan adopted the Act on Prevention of Transfer of Criminal Proceeds in March 2007 to consolidate and broaden preventive AML obligations across covered businesses. Adoption is recorded separately from the April FIU transfer and March 2008 full enforcement.

Effective 2007-04Open update ↗
20062 events
23.12.2006
GLOBALUNSC · bindingPF / TFS
UN Security Council Resolution 1737 establishes Iran proliferation-related asset-freeze measures

Resolution 1737 imposed binding measures concerning Iran’s proliferation-sensitive nuclear activities, including an asset freeze on designated individuals and entities. Together with the DPRK regime, it forms a foundational UN counter-proliferation targeted-financial-sanctions architecture.

CURRENT CHARTER RELATIONSHIPUN Member State · Article 25 obligation

UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.

UN Charter · Article 25 ↗
Binding UNSC architecture · 23.12.2006 · National implementation is separateOpen update ↗
14.10.2006
GLOBALUNSC · bindingPF / TFS
UN Security Council Resolution 1718 establishes DPRK proliferation-related asset-freeze measures

Following the DPRK nuclear test, Resolution 1718 imposed binding sanctions including an asset freeze on designated persons and entities connected to the nuclear programme. It became a central UN targeted-financial-sanctions pillar for counter-proliferation financing.

CURRENT CHARTER RELATIONSHIPUN Member State · Article 25 obligation

UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.

UN Charter · Article 25 ↗
Binding UNSC architecture · 14.10.2006 · National implementation is separateOpen update ↗
20042 events
2004-10
GLOBALGlobal standardCFT / cash couriersFATF
FATF Ninth Special Recommendation

FATF added a ninth Special Recommendation addressing cash couriers and cross-border movement of currency.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 2004-10 · Country implementation/status is separateOpen update ↗
28.04.2004
GLOBALUNSC · bindingPF / WMD controls
UN Security Council Resolution 1540 creates binding global WMD-proliferation control duties

Resolution 1540 requires all States to adopt and enforce laws and domestic controls to prevent non-State actors from acquiring or using weapons of mass destruction and related materials. It forms a binding global legal pillar of the proliferation-financing control environment later reflected in FATF CPF standards.

CURRENT CHARTER RELATIONSHIPUN Member State · Article 25 obligation

UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.

UN Charter · Article 25 ↗
Binding UNSC architecture · 28.04.2004 · National implementation is separateOpen update ↗
20032 events
31.10.2003
GLOBALTreatyML / asset recovery
UNCAC adds a universal anti-corruption, laundering and asset-recovery treaty layer

The UN General Assembly adopted the United Nations Convention against Corruption on 31 October 2003. UNCAC addresses prevention of money laundering, laundering of corruption proceeds, confiscation and a dedicated asset-recovery framework; the Convention entered into force globally on 14 December 2005.

CURRENT TREATY STATUSParty

Current UN depositary relationship to 2003 UN Convention against Corruption. This is not a claim that the jurisdiction was already a Party on the GLOBAL event date; the national accession/ratification date is a separate LOCAL/STATUS fact.

UN Treaty Collection ↗
Treaty adopted 31.10.2003 · Global entry into force 14.12.2005 · Country treaty status is separateOpen update ↗
2003-06
GLOBALGlobal standardAML/CFT standardsFATF
The FATF Recommendations — 2003 revision

FATF comprehensively revised its AML/CFT Recommendations, strengthening preventive measures and extending coverage.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 2003-06 · Country implementation/status is separateOpen update ↗
20013 events
04.10.2001
GLOBALSupervisory standardCDD / KYC
Basel Committee establishes a global customer-due-diligence benchmark for banks

The Basel Committee issued Customer due diligence for banks, setting minimum supervisory expectations for customer acceptance, identification, ongoing monitoring and risk management. It became an influential global banking KYC/CDD benchmark and was later reflected in FATF standards.

COUNTRY APPLICABILITYNon-binding global benchmark

A Basel supervisory publication does not become domestic law merely because it is GLOBAL. National adoption, supervisory use or incorporation must be evidenced by a LOCAL milestone or source.

Basel Committee on Banking Supervision ↗
Global supervisory benchmark · 04.10.2001 · Domestic adoption is separateOpen update ↗
2001-10
GLOBALGlobal standardCFTFATF
FATF Special Recommendations on Terrorist Financing

FATF expanded its standards to terrorist financing through eight Special Recommendations.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 2001-10 · Country implementation/status is separateOpen update ↗
28.09.2001
GLOBALUNSC · bindingCFT / TFS
UN Security Council Resolution 1373 imposes binding CFT and freezing duties on all States

Resolution 1373 requires all States to prevent and suppress terrorist financing, criminalise the provision or collection of funds for terrorist acts, freeze terrorist assets without delay and prohibit making funds or financial services available to terrorists and related entities.

CURRENT CHARTER RELATIONSHIPUN Member State · Article 25 obligation

UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.

UN Charter · Article 25 ↗
Binding UNSC architecture · 28.09.2001 · National implementation is separateOpen update ↗
20003 events
15.11.2000
GLOBALTreatyML / organised crime
Palermo Convention broadens the international money-laundering framework beyond drug trafficking

The Palermo Convention was adopted on 15 November 2000 and broadened the international money-laundering framework beyond drug proceeds through criminalisation and preventive measures tied to transnational organised crime. It entered into force globally on 29 September 2003.

CURRENT TREATY STATUSParty

Current UN depositary relationship to 2000 Palermo Convention. This is not a claim that the jurisdiction was already a Party on the GLOBAL event date; the national accession/ratification date is a separate LOCAL/STATUS fact.

UN Treaty Collection ↗
Treaty adopted 15.11.2000 · Global entry into force 29.09.2003 · Country treaty status is separateOpen update ↗
2000
LOCALStatus changeBanking / Credit Institutions
Japan FIU admitted to the Egmont Group

FinCEN-sourced historical membership data records Japan's FIU among Egmont admissions in 2000. The current Egmont roster carries a different raw admission value (2007-05-29), which is preserved separately rather than used to overwrite the historical relationship start.

Relationship state from 2000Open update ↗
2000
LOCALAmendmentNational Police Agency — JAFICBanking / Credit InstitutionsPayments / EMI / Money Transfer
Organized Crime Punishment Act expands predicate offences and financial intelligence functions

Japan broadened the laundering offence and reporting framework; the predecessor financial intelligence office JAFIO operated within the FSA era.

Effective 2000Open update ↗
19992 events
09.12.1999
GLOBALTreatyCFT
UN Terrorist Financing Convention establishes a treaty-level CFT framework

The UN General Assembly adopted the International Convention for the Suppression of the Financing of Terrorism on 9 December 1999, creating the treaty framework for criminalising terrorist financing and international cooperation. It entered into force globally on 10 April 2002.

CURRENT TREATY STATUSParty

Current UN depositary relationship to 1999 Terrorist Financing Convention. This is not a claim that the jurisdiction was already a Party on the GLOBAL event date; the national accession/ratification date is a separate LOCAL/STATUS fact.

UN Treaty Collection ↗
Treaty adopted 09.12.1999 · Global entry into force 10.04.2002 · Country treaty status is separateOpen update ↗
15.10.1999
GLOBALUNSC · bindingTFS
UN Security Council Resolution 1267 establishes a targeted asset-freeze regime

Resolution 1267 imposed an assets freeze and other targeted sanctions in the Taliban context and created the Security Council committee that became the foundation of the UN 1267 sanctions architecture. It is a key global precursor to modern terrorist-financing targeted financial sanctions.

CURRENT CHARTER RELATIONSHIPUN Member State · Article 25 obligation

UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.

UN Charter · Article 25 ↗
Binding UNSC architecture · 15.10.1999 · National implementation is separateOpen update ↗
19971 event
27.02.1997
LOCALStatus changeBanking / Credit Institutions
Japan becomes a founding APG member

Japan is one of the 13 founding members of the Asia/Pacific Group on Money Laundering established in Bangkok on 27 February 1997.

Relationship state from 27.02.1997Open update ↗
19961 event
1996
GLOBALGlobal standardAML standardsFATF
The FATF Recommendations — 1996 revision

FATF revised the Forty Recommendations to reflect evolving money-laundering methods and countermeasures.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 1996 · Country implementation/status is separateOpen update ↗
19951 event
09.06.1995
GLOBALFIU cooperationFIU cooperation
Egmont Group creates the global FIU cooperation network

Representatives of 13 financial intelligence units met in Brussels on 9 June 1995 and founded what became the Egmont Group. The milestone created the operational global network for FIU-to-FIU cooperation and exchange of financial intelligence.

CURRENT EGMONT RELATIONSHIPMember FIU · JAFIC

Current profile relationship to the Egmont network. This does not imply membership in 1995; admission history is a separate LOCAL/STATUS fact.

Egmont Group · Member FIUs ↗
Global FIU cooperation infrastructure · 09.06.1995 · FIU membership is separateOpen update ↗
19921 event
1992
LOCALNew ruleNational Police Agency — JAFICBanking / Credit Institutions
Japan introduces core money-laundering controls and suspicious-transaction reporting

Early AML legislation criminalised laundering in key drug-crime contexts and introduced suspicious-transaction reporting architecture that later expanded.

Effective 1992Open update ↗
19902 events
1990
GLOBALGlobal standardAML standardsFATF
The Forty Recommendations of the Financial Action Task Force on Money Laundering

FATF issued its original Forty Recommendations, establishing the first global AML standard framework.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global standard · 1990 · Country implementation/status is separateOpen update ↗
19892 events
1989
GLOBALGlobal institutionGlobal standard-settingFATF
Financial Action Task Force is established by the G7

The G7 established FATF in 1989 to examine and develop measures to combat money laundering. FATF became the central global standard-setting body whose recommendations are implemented through national and regional AML/CFT frameworks.

CURRENT FATF RELATIONSHIPDirect FATF member · also APG

Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.

FATF Global Network ↗
Global institutional milestone · 1989 · Country membership is separateOpen update ↗
1989
LOCALNew ruleFATF
Japan participates in the 1989 establishment of FATF

Japan was among the original jurisdictions in the FATF framework established in 1989. This anchors Japan’s national AML development in the first generation of international AML standards.

Effective 1989Open update ↗
19882 events
20.12.1988
GLOBALTreatyML criminalisation
Vienna Convention creates the first treaty-level international money-laundering criminalisation baseline

The Vienna Convention was adopted on 20 December 1988 and created the first treaty-level international obligation to criminalise laundering conduct linked to drug-trafficking proceeds, alongside confiscation and international-cooperation measures. It entered into force globally on 11 November 1990.

CURRENT TREATY STATUSParty

Current UN depositary relationship to 1988 Vienna Convention. This is not a claim that the jurisdiction was already a Party on the GLOBAL event date; the national accession/ratification date is a separate LOCAL/STATUS fact.

UN Treaty Collection ↗
Treaty adopted 20.12.1988 · Global entry into force 11.11.1990 · Country treaty status is separateOpen update ↗
1988-12
GLOBALSupervisory standardBank AML / KYC
Basel Committee issues principles to prevent criminal use of banks for money laundering

The Basel Committee published a Statement of Principles for banks aimed at reducing the risk that banking institutions would be used by criminals or as channels for money laundering. This helped establish the preventive and supervisory side of AML alongside the emerging criminal-law framework.

COUNTRY APPLICABILITYNon-binding global benchmark

A Basel supervisory publication does not become domestic law merely because it is GLOBAL. National adoption, supervisory use or incorporation must be evidenced by a LOCAL milestone or source.

Basel Committee on Banking Supervision ↗
Global supervisory benchmark · 1988-12 · Domestic adoption is separateOpen update ↗

Sources & Verification18

Travel Rule under Japan’s crypto-asset AML frameworkFinancial Services Agency (Japan) · GUIDANCEJapan · FATF country profileFinancial Action Task Force (FATF) · ASSESSMENT / PROFILEJAFICJapan Financial Intelligence Center (JAFIC) · INSTITUTIONAL / REFERENCEJAFIC legal materialsJapan Financial Intelligence Center (JAFIC) · GUIDANCEJAFIC — AML/CFT legal framework historyJapan Financial Intelligence Center (JAFIC) · LAW / REGULATIONe-Gov lawse-Gov laws · LAW / REGULATIONDiscussion Paper on validation of effectiveness of AML/CFT frameworksFinancial Services Agency (Japan) · REPORT / PUBLICATIONFSA AML/CFTFinancial Services Agency (Japan) · OFFICIAL SOURCEHistory of the FATFFinancial Action Task Force (FATF) · INSTITUTIONAL / REFERENCEEgmont Group Member FIU InformationEgmont Group of Financial Intelligence Units · INSTITUTIONAL / REFERENCEJapan FSA revises AML/CFT/CPF guidelines for certified public accountants and audit firmsFinancial Services Agency (Japan) · GUIDANCEFATF RecommendationsFinancial Action Task Force (FATF) · OFFICIAL SOURCEFATF Countries & Global NetworkFinancial Action Task Force (FATF) · OFFICIAL SOURCEAsia/Pacific Group on Money LaunderingFinancial Action Task Force (FATF) · OFFICIAL SOURCEFATF consolidated assessment ratingsTechnical Compliance & Effectiveness · 2013 MethodologyMutual Evaluation Report · 2021-08Official FATF / regional assessmentFollow-Up Report · 2024-10Official follow-up / technical rating updateJapan FSA · Suspicious transaction reportingFinancial Services Agency (Japan) · GUIDANCE