JAPAN Law and Practice Contributed by: Masayuki Fukuda, Nagashima Ohno & Tsunematsu
8. Anti-Money Laundering (AML) 8.1 AML Legislation Members of organised crime groups, or those who used to be members of organised crime groups during the past five years, are prohibited from entering casino facilities. A casino business operator must: • follow KYC procedures (confirmation of the identi- ties of customers, the purposes of their transac- tions and their professions or business purposes, and the identities of persons controlling judicial entities); • keep records of transactions; and • notify the authorities of any transaction that is sus- pected to be a transfer of criminal proceeds. In addition, the casino business operator must: • take measures that are necessary to prohibit the transfer of chips among customers and the car- rying of chips from within the casino facilities to outside; • show signs stating that “the transfer or carrying of chips from within the casino facilities to outside is prohibited” in the area of verification of customers’ identification, as well as the area of casino activi- ties; and • notify the Commission of any delivery of chips or other casino business-related transactions that accompany the payment or receipt of cash exceeding JPY1 million. More specifically, a casino business operator must: • establish internal rules for the prevention of trans- fers of criminal proceeds, which set forth clear procedures for the above measures; • take measures to update, from time to time, infor- mation regarding matters that need to be verified when conducting casino transactions (eg, details of identification documents that are required from customers); • provide education and training to employees; • put in place a system for implementing anti-money laundering measures, such as the appointment of a supervising manager;
• identifying persons who are prohibited from enter- ing casino facilities; • having such entry-prohibited persons leave the casino facilities in cases where such persons are identified; and • preventing such entry-prohibited persons from using the casino facilities. For compliance with such rules, a casino business operator shall: • implement education and training for its employ- ees; • make rules of conduct; • appoint persons who exercise overall control over the services necessary for complying with these rules; and • undertake other measures specified by the rules of the Casino Regulatory Commission. To prevent problem gambling, only non-resident for- eigners may purchase chips using credit cards. For the same reason, automatic teller machines (ATMs) are not permitted to be installed within casino facilities and only ATMs without money-lending functions are permitted to be installed in areas surrounding casino facilities. In addition, since money lending might accelerate problem gambling, access to money borrowing is only available to: • customers who have the financial capability to deposit with the casino business operator cash Also, to prevent excessive lending, casino business operators shall check customers’ capabilities to repay their loans and shall set a separate cap on the loan amount for each customer. 7.2 Gambling Management Tools No gambling management tools are available yet. exceeding a certain amount; and • non-resident foreign customers.
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