JP v13.3.0

Japan (JP) · Module Detail

Japan: AML/CFT & Financial Crime (Sentinel.gi-fed)

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Sentinel position: JP AML/CFT anchored in the Act on Prevention of Transfer of Criminal Proceeds, FSA-supervised with NPA/MOF coordination. Travel Rule applies to crypto/EPI (VASP) transfers, scoped to equivalent-rule jurisdictions; five jurisdictions added May 2026.

Standing sub-brief · as of 4 August 2026157 words · last cycle 2026-06-28

AML/CFT & Financial Crime

This module is sourced from the Sentinel.gi feed; original illicit-finance analysis is routed to that feed and to the Financial Intelligence Monitor rather than re-analysed here. Per the Sentinel feed, Japan imposes Travel Rule notification obligations on Cryptoasset Exchange Service Providers and Electronic Payment Instruments Service Providers (collectively VASPs), limiting scope to transfers to foreign VASPs in jurisdictions with equivalent rules, and added five jurisdictions to the scope in May 2026. The regime is anchored in the Act on Prevention of Transfer of Criminal Proceeds, supervised by the FSA with NPA/MOF coordination, and reaches both bank and non-bank operators. The Travel Rule scope expansion to five additional jurisdictions enlarges the compliance perimeter for crypto/EPI cross-border transfers. Source: Sentinel.gi feed (FSA primary publication).

no periodic updates on record for this sub-brief

Sources and findings (7)
  1. T3sentinel://mco.mycomplianceoffice.com/blog/cryptocurrency-japan-evolving-regulation-for-financial-firms
  2. T?FIM (sentinel.gi) per-JID baseline profile — Japan — Japan runs an integrated AML/CFT/CPF framework under the APTCP, PSA and FIEA, supervised by the FSA/JVCEA with JAFIC (under the National Police Agency) as FIU. Following its 2021 MER, Japan is now compliant on 4 and largely compliant on 35 FATF Recommendations with none rated partially compliant, reflecting sustained technical remediation, though effectiveness gaps in DNFBP supervision, legal-person misuse prevention and ML/TF prosecution persist.
  3. T2FIM (sentinel.gi) enforcement_action_register (issue FIM-BASE-ENF-003) — Enforcement: JFSA — Licensed crypto asset exchange operators
  4. T1FIM (sentinel.gi) sanctions_change_register (issue FIM-BASE-SANC-002) — Sanctions: OFSI divergence
  5. T?FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-003) — Gap: capacity-deficit
  6. T?FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-001) — Gap: legal-gap
  7. T?FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-002) — Gap: enforcement-absence