Japan to Step Up Fight against Scam Proceed Laundering

Tokyo, April 3 (Jiji Press)–The cabinet of Japanese Prime Minister Sanae Takaichi approved Friday amendments to the criminal proceeds transfer prevention law to give police stronger ammunition to crack down on money laundering by scammers. The amendment bill, which the Takaichi administration aims to have enacted during the ongoing parliamentary session, allows police to open online bank accounts under fictitious names for scammers’ use to track the flow of fraud proceeds while protecting deposited victim money. It stipulates necessary procedures for the account opening and rules for the handling of the deposits. To prevent the use of fraudulent bank accounts, the bill calls for tightening penalties for selling accounts and passbooks, from the current “imprisonment of up to one year or a fine of up to 1 million yen” to “imprisonment of up to three years or a fine of up to 5 million yen.” Continued account selling for a living is subject to the heavier punishment of “imprisonment of up to five years or a fine of up to 10 million yen.” “Tokuryu” anonymous, fluid criminal groups and other online scammers use Illegally obtained bank accounts to transfer and receive swindled funds. In 2024, police cracked down on bank account selling in a record 4,362 cases. The high figure prompted a National Police Agency expert panel to demand tougher penalties. The bill also seeks to eliminate the so-called “remittance side jobs” taken by people recruited by criminal groups on social media, by newly outlawing money transfers and transfer requests on a payment basis. Violators will be imprisoned for up to two years or fined up to 3 million yen. END [Copyright The Jiji Press, Ltd.]