FAQ and Glossary
Frequently Asked Questions (FAQs) and Glossary of Terms
Ultimate Beneficial Owner (UBO)
「An individual recognized as holding directly or indirectly more than one-quarter of the total voting rights of the corporation.
If no such individual exists, then the individual who exerts dominant influence over the business activities through investments, loans, transactions, or other relations. If no individual meets these criteria, then the individual who represents and executes the business on behalf of the corporation. (Ultimate Beneficial Owner)」
Related Site: Ministry of Internal Affairs Website https://www.soumu.go.jp/main_content/000478067.pdf
Act on Prevention of Transfer of Criminal Proceeds
This law establishes regulations to combat money laundering and terrorist financing. It mandates financial institutions and other entities to conduct transaction verification, maintain transaction records, and report suspicious transactions.
FATF（Financial Action Task Force）
Established in response to the 1989 Economic Declaration of the Paris Summit, the Financial Action Task Force (FATF) is a multilateral framework designed to promote international cooperation in combating money laundering. Following the September 11, 2001 terrorist attacks, FATF expanded its mandate to also address the financing of terrorism. It includes 37 countries and 2 international organizations, including the G7 nations. FATF's work involves developing and promoting policies and standards to prevent financial crimes and ensure effective measures are in place globally.
Related Site: Financial Action Task Force (FATF) Website（https://www.fatf-gafi.org/）
Corruption Perceptions Index (CPI)
The Corruption Perceptions Index (CPI) is a measure developed by the international NGO Transparency International (TI). It collects information from various reputable sources, including the World Bank and the World Economic Forum, to assess and calculate the extent to which public sectors in different countries are perceived to be corrupt. The CPI score reflects these perceptions and provides an indication of corruption levels in each country.
DNFBPs （Designated NonFinancial Businesses and Professions）
Industries such as casinos, real estate agents, dealers in precious metals, jewelers, lawyers, notaries, other independent legal professionals, and accountants
CDD（Customer Due Diligence）
CDD is a core component of risk mitigation measures, focusing specifically on individual customers. Based on the risks identified and assessed by the institution, this process involves investigating each customer's information and the nature of their transactions. The findings from this investigation are then compared with the risk assessment results to determine and implement appropriate risk reduction measures.