Japan will implement stricter anti-money laundering measures, including those recommended by the Financial Action Task Force (FATF). The decision was made by Japan’s cabinet on June 23, 2023 after the country’s anti-money laundering measures were deemed insufficient by global financial crime watchdog FATF.
Reporting from CoinDesk, Friday (11/8/2023), in 2019, the FATF recommended rules called “travel rules” to combat money laundering and terrorist financing using crypto. In June 2022, the FATF urged member states to introduce travel regulation laws “as soon as possible”.
The Group of Seven (G7) intergovernmental political forum signaled its support for the FATF’s efforts to accelerate implementation of its travel rules globally, which mandate the sharing of information on transfers of crypto funds between financial institutions. Japan had not implemented any travel rules at that time.
Japan’s move to implement the rules is seen as an effort to align with global standards endorsed by the G7, where Japan currently holds the presidency.
The Japanese crypto industry has been grappling with travel rules since 2021 when the Japan Financial Services Agency (FSA) asked virtual asset service providers to implement them.
In April 2022, the Japan Virtual Currency Exchange Association (JVCEA) introduced corresponding self-regulatory rules. In October last year, the Japanese government approved a cabinet decision to amend existing laws to curb money laundering using cryptocurrencies, in line with FATF guidelines.
