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Global watchdog Financial Action Task Force (FATF) warned Japan that it needs to boost efforts against money laundering, such as having financial institutions confirm the identities of bank account customers and cracking down on concealing proceeds from crimes.
The FATF categorized Japan in the "enhanced follow-up" group of countries or those that need to improve anti-money laundering measures, along with the US and China.
The rank is the second-lowest level under the FATF’s three-stage classification.
FATF's report pointed out that ongoing customer due diligence on Japanese bank accounts is insufficient and that the country needs to improve the investigation and prosecution of money laundering and terrorist financing cases.
Nations and regions could face restrictions on financial transactions if their measures, as determined by the FATF, are deemed woefully insufficient.
