JAPAN Law and Practice Contributed by: Shinya Tago, Atsushi Fukasawa, Hiroshi Iida and Landry Guesdon, Iwata Godo Law Offices
Terrorist Financing Laws combatting the financing of terrorism (collec - tively, the “CFT regulations”) include: • the Act on Punishment of the Financing of Crimi - nal Activities for the Purpose of Intimidation of the General Public and of Governments (the “Terrorist Financing Suppression Act”); • the APTCP; • the FEFTA; and • the Act on Special Measures concerning the Freez - ing of Terrorist Assets under UN Security Council Resolution 1267. These are supplemented by the Guidelines on Anti- Money Laundering and Combatting the Financing of Terrorism and related FAQ issued by the FSA. JAFIC is also the relevant FIU under the FATF scheme, and collects and analyses information on the financing of terrorism. The MOF is also in charge of the CFT regulations and has the authority to supervise, monitor and inspect suspicious cross-border financings that may be asso - ciated with terrorism under the FEFTA. The Terrorist Financing Suppression Act prohibits acts relating to financing by persons attempting to carry out terrorist acts or their accomplices, and imposes penalties (Article 2, Paragraphs 2 to 5). 3.14 ESG-Related Offences Environmental Pollution There are no general criminal provisions prohibiting environmental pollution, but penalties are provided for in specific environmental laws (eg, Article 31 of the Water Pollution Control Act; Article 33-2 of the Air Pollution Control Act). Certain penalties can only be imposed if an entity fails to comply with an improve - ment order issued by the authorities. Human Rights Violations There are no criminal provisions prohibiting human rights violations in general. However, the Constitution, the PC, the Labour Standards Act, the Immigration Control Act, the Employment Security Act, the CPA and other laws prohibit violations of personal liberty,
These are supplemented by the Guidelines on Anti- Money Laundering and Combatting the Financing of Terrorism and the related FSA FAQ. The Japan Financial Intelligence Centre (JAFIC), within the National Police Agency, is the relevant financial intelligence unit (FIU) under the Financial Action Task Force (FATF) regime, collecting and analysing informa - tion on money laundering. The APTCP and FEFTA impose obligations on finan - cial institutions to use certain measures to prevent money laundering and terrorist financing, including: • know-your-customer (KYC) measures (customer identification); • record-keeping of customers’ transactions; and • reporting suspicious transactions to the authorities. Non-compliance can lead to administrative sanctions by the relevant authority. The APOC prohibits certain types of conduct, includ - ing the following. • Concealing or attempting to conceal facts relating to the acquisition and disposal of the proceeds of a crime or their source. Sanctions are imprison - ment of up to ten years and/or a fine of up to JPY5 million. • Accepting the proceeds of a crime. Sanctions are imprisonment of up to seven years and/or a fine of up to JPY3 million. • Planning to carry out criminal acts for a criminal organisation, terrorist group or organised crime group involving two or more persons, with one or more conducting preparatory acts such as secur - ing funds or goods or inspecting locations ahead of crimes in accordance with a plan. Sanctions are imprisonment with or without labour for up to five years. Obtaining bank books or cash cards with the inten - tion of receiving banking services by passing off as another is punishable under the APTCP.
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