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, registered foreign lawyers (Gaikokuho-Jimu-Bengoshi), registered foreign legal profession corporations (Gaikokuho-Jimu-Bengoshi-Hojin) and attorney at law / registered foreign lawyer joint corporations (Bengoshi-Gaikokuho-Jimu-Bengoshi-Kyodohojin) are required under the following rules and regulations to verify the identity of clients, retain records and observe certain other matters.
Rules Concerning Verification of Client Identity and Retention of Records（PDFfile;296KB）
Regulations Concerning Verification of Client Identity and Retention of Records (PDFfile;554KB)
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.）
Checklist Concerning Verification of Client Identity
• Model form for Verification of Client Identity and Record Retention(Brief Version)
For Juridical Person（PDF file）
For Juridical Person（Excel file）
For Individual（PDF file）
For Individual（Excel file）
（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:
https://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.
Risk 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:
Risk Assessment of Money Laundering in Legal Practice（The members' webpage only）
Risk Assessment of Money Laundering in Legal Practice(Second Edition)（The members' webpage only）
Risk Assessment of Money Laundering in Legal Practice(Third Edition)（The members' webpage only）
Risk Assessment of Money Laundering in Legal Practice(Fourth Edition)（The members' webpage only）
Risk Assessment of Money Laundering in Legal Practice(Fifth Edition)（The members' webpage only）
Risk Assessment of Money Laundering in Legal Practice(Sixth Edition)（The members' webpage only）
Risk Assessment of Money Laundering in Legal Practice(Seventh Edition)（The members' webpage only）
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."
Money 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.
Implementation of Preventive Measures for Money Laundering by Attorneys-Report on Result of Large Law Firm Survey- (PDFfile;278KB)
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)
Ministry of Foreign Affairs's webpage
National Police Agency's webpage
