April 26, 2019
Agency for Natural Resources and Energy
Under the Act on Prevention of Transfer of Criminal Proceeds (Act No. 22 of 2007; hereinafter referred to as the “Act”), the Ministry of Economy, Trade and Industry (METI) executed administrative sanctions and other instructions as below against one company engaging in transactions of gold bullion and other materials.
1. Details of the administrative sanctions and other instructions
Under Article 17 of the Act, METI conducted the following administrative guidance:
- The company should promptly submit a notification of suspicious transactions* stipulated in Article 8 (1) and (2) of the Act; and
- To prevent further occurrence of such violations, the company should take measures for appropriately performing obligations required to Specified Businesses that are stipulated in the provisions of Article 11 (1) and (2) of the Act, including further enhancement of educational training to employees of the company and confirmation of required items concerning transactions of the company with customers, e.g., development and revision of rules.
Along with this, METI issued an Order for Request for Reports to the company under Article 15 of the Act and requested the company to submit a report on the measures that the company has conducted to satisfy the guidance above by the designated date.
2. Details of the violations
The company mentioned above has been trading with a customer that has been conducting in suspicious transactions of a large amount of gold bullion in cash repeatedly for a short period of time. Nevertheless, the company failed to submit a notification of this fact to the administrative authority.
Note: METI has released the guidelines titled “Compliance Laws and Regulations that Businesses Engaging in Transaction of Gold Bullion and Other Materials Should Observe,” as a reference for businesses in determining suspicious transactions. The guidelines also present specific case examples of business modes involving suspicious transactions.
- Reference: Compliance Laws and Regulations that Businesses Engaging in Transaction of Gold Bullion and Other Materials Should Observe(in Japanese)
Division in Charge
Mineral and Natural Resources Division, Natural Resources and Fuel Department, Agency for Natural Resources and Energy