Japan’s government has approved key amendments to combat money laundering by scammers, targeting fraud proceeds through stricter penalties and innovative policing tools. These measures address a surge in special fraud cases, enhancing the nation’s AML framework.
Cabinet Approves Bill Details
On April 3, 2026, Prime Minister Sanae Takaichi’s cabinet endorsed revisions to the Act on Prevention of Transfer of Criminal Proceeds. The bill empowers police to create fictitious online bank accounts, enabling scammers to deposit illicit funds while authorities track flows and safeguard victim money.
Key provisions include procedural rules for account handling to ensure legal compliance. The legislation aims for enactment in the current Diet session, reflecting urgency amid rising scams.
Tougher Penalties for Account Trading
Penalties for selling bank accounts or passbooks will rise from up to one year imprisonment or 1 million yen fine to three years or 5 million yen. Repeat offenders profiting as a livelihood face up to five years or 10 million yen fines.
This escalation responds to “Tokuryu” anonymous crime groups exploiting accounts for fraud transfers. Police recorded 4,362 account trading cases in 2024, a record high and 3.5-fold increase since 2011.
Banning Remittance Side Jobs
The bill criminalizes paid “remittance side jobs” recruited via social media, where individuals transfer fraud money to designated accounts. Violators face up to two years imprisonment or 3 million yen fines, closing a legal loophole.
These jobs facilitated 50% of special frauds like telephone scams and 80% of social media investment/romance scams in 2024. Enforcement targets illegitimate, compensated transfers.
Background and Scam Surge
The National Police Agency (NPA) expert panel, reporting in January 2026, recommended these changes after analyzing fraud trends. Account freezing and terminations tripled since 2011, yet deterrence lagged.
Japan’s AML regime aligns with FATF standards, building on 2024 amendments for crypto travel rules and professional guidelines. Public-private partnerships, like the 2018 forum with FSA, NPA, and banks, bolster efforts ahead of 2028 FATF review.
From April 2027, banks will share fraudulent account data via the Cooperation Agency for Anti-Money Laundering, led by Japanese Bankers Association chair Masahiko Kato. This coordinates with police to freeze suspects swiftly.
Expert and Official Statements
NPA’s report stressed fictitious accounts for investigations to deter trading and recover funds. Prime Minister Takaichi’s administration prioritizes enactment amid ongoing fraud crisis.
Masahiko Kato emphasized inter-agency coordination: “It is essential to coordinate not only within the banking sector but also with relevant ministries and agencies.” FSA eyes expanding real-time info sharing to non-banks and crypto exchanges.
Broader AML Context
Japan’s framework involves JAFIO, NPA, FSA, and MOF, showing broad FATF compliance per past IMF assessments. Recent refinements target ancillary services like accountants to combat shell companies.
These steps counter sophisticated crimes, including digital assets, positioning Japan strongly for global standards. Public awareness campaigns complement enforcement.