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HOME > Legal Info & Services > Anti Money Laundering Measures-Verification of Client Identity-

Anti Money Laundering Measures-Verification of Client Identity-


Dear Clients

Attorneys may request for verification of your identity when attorneys accept your instructions of legal services


Attorneys are obliged to verify the identity of clients and retain records under the rules of the bar.


These obligations are required under the international regime so as to combat money launderings.  We thank you for your understanding.


Dear Foreign Special Members

Rules and Regulations Concerning Verification of Client Identity and Retention of Records


 Attorneys including registered foreign lawyers and registered foreign lawyer corporations are required under the following rules and regulations to verify the identity of clients, retain records and observe certain other matters.


arrow_blue_2.gifRules Concerning Verification of Client Identity and Retention of Records


arrow_blue_2.gifRegulations Concerning Verification of Client Identity and Retention of Records


The Japanese language originals are available at the Japanese language portal page.  The English language translations are for information purposes only.  In case of any discrepancy between Japanese originals and English translation, the Japanese originals should prevail.  Japanese language portal site also contains additional materials concerning the rules and regulations.



Reference Materials and Tools


JFBA provides tools to assist its members to comply with the rules and regulations and avoid being involved in the money launderings.
(Please note that some tools are available at the members' webpage only.)


icon_pdf.gifChecklist Concerning Verification of Client Identity (Brief Version)


• Model form for Verification of Client Identity and Record Retention(Brief Version)


icon_pdf.gifFor Juridical Person


icon_exl.gifFor Juridical Person


icon_pdf.gifFor Individual


icon_exl.gifFor Individual


icon_page.pngSeminar regarding JFBA Anti Money Laundering Regulations applicable to Foreign Special Member

 (Gaikokuho-Jimu-Bengoshi)(The members' webpage only)



Legal Practices and Money Laundering Risks


1. National Risk Assessment


The Financial Action Task Force (FATF) is an inter-governmental body established to combat money laundering, terrorist financing and other related threats.  The FATF has published Recommendations which are the internationally endorsed global standards against money laundering and terrorist financing.  The recommendations require each member country to identify and assess the risks of money laundering and terrorist finance that it faces.


Pursuant to Article 3, Paragraph 3 of the Act on Prevention of Transfer of Criminal Proceeds, the National Public Safety Commission identify and assess risks that Japan faces and publish its report each year.  The report is available at the website of Japan Financial Intelligence Center:


icon_page.pnghttps://www.npa.go.jp/sosikihanzai/jafic/en/nenzihokoku_e/nenzihokoku_e.htm



2. Risk Base Approach Guidance for Legal Professionals


The FATF published the Risk Base Approach Guidance for Legal Professionals on 23 October 2008, which are useful in understanding the risks involved in legal practices.


icon_pdf.gifRisk Base Approach Guidance for Legal Professionals


The report is useful in understanding money laundering risks associated with the legal practices. 


 

3. Money Laundering Risks Particular to Legal Practices in Japan


JFBA Working Group on Anti Money Laundering(AML) reviews the National Risk Assessment and Risk Based Approach Guidance for Legal Professionals and assess money laundering risks that are particular to legal practices in Japan:


icon_pdf.gifRisk Assessment of Money Laundering in Legal Practice (PDFファイル;246KB)

icon_pdf.gifRisk Assessment of Money Laundering in Legal Practice(Second Edition)(The members' webpage only)(PDFファイル;250KB)


 

Article 9, Item 5 of the Rules Concerning Verification of Client Identity and Retention of Records and Article 10 of the Regulations Concerning Verification of Client Identity and Retention of Records require attorneys including registered foreign lawyers and registered foreign lawyer corporation to take certain measures considering the report on risk assessment published pursuant to the Act on Prevention of Transfer of Criminal Proceeds. You are advised to consult with the foregoing statement in designing and implementing the AML measures within your firm.



4. Money Laundering and Terrorist Financing Vulnerabilities of Legal Professionals


In June 2013, FATF published a report entitled "Money Laundering and Terrorist Financing Vulnerabilities of Legal Professionals." 


icon_pdf.gifMoney Laundering and Terrorist Financing Vulnerabilities of Legal Professionals


The report analyzed over 100 cases where attorneys were involved in money laundering and highlighted red flag indicators which were found in these cases.  These cases and red flag indicators should be a useful tool as risk management.


 

5. Preventive Measures Adopted by Large Law Firms


JFBA Working Group on AML surveyed large law firms as to preventive measures adopted by them and reported the outcome.


icon_pdf.gifImplementation of Preventive Measures for Money Laundering by Attorneys-Report on Result of Large Law Firm Survey- (PDFファイル;274KB)


Article 9 of the Rules Concerning Verification of Client Identity and Retention of Records require attorneys including registered foreign lawyers and registered foreign lawyer corporation to establish certain internal control system within law firms. You are advised to consult with the foregoing statement in designing and implementing the AML measures within your firm.



6. Purposes of Instructions - Designation of International Terrorists


 Article 6 of the Rules Concerning Verification of Client Identity and Retention of Records require attorneys including registered foreign lawyers and registered foreign lawyer corporation to carefully examine the purposes of the client's instruction before accepting the same in view of a number of elements including attributes of the client.  The government publishes list of terrorists who are designated by the resolutions of the United Nations Security Council.  You are advised to consult with the list when you examine the purposes of the client's instructions.


(Japanese only)

icon_page.pngMinistry of Finance's webpage

icon_page.pngNational Police Agency's webpage