This act combats financial crimes and terrorism financing within Japan.

• Customer Verification: Mandates identity checks for clients.
• Reporting Obligations: Requires institutions to report suspicious activities.
• Risk Assessments: Enforces frameworks to evaluate risks.

The act aligns with global AML standards, with updates over recent years.

• Legal Penalties: Firms face fines and operational restrictions.
• Reputational Harm: Non-compliance erodes consumer trust.
• Operational Risks: Breaches disrupt regulatory approval.

• Risk Reduction: Mitigates exposure to financial crime.
• Global Alignment: Demonstrates adherence to international standards.
• Consumer Trust: Enhances confidence in financial institutions.