Japan’s New Measures Against Money Laundering and Financial Crimes

Japan has announced new measures to combat money laundering and financial crimes, which are crucial for foreign entrepreneurs operating in the country. These regulations aim to enhance the integrity of Japan’s financial system and align with international standards. Understanding these changes is essential for foreign business owners to ensure compliance and avoid potential legal repercussions, making it a pivotal moment for those involved in Japan’s economy.

Background & Context

Japan’s financial regulatory framework has been evolving to address the challenges posed by money laundering and financial crimes. The Financial Services Agency (FSA) (Kinyū-chō) is the primary authority responsible for overseeing these regulations. The latest measures, announced in July 2026, build upon previous laws such as the Act on Prevention of Transfer of Criminal Proceeds (Hanzai Shōhi no Bōgai ni Kansuru Hōritsu) enacted in 2007 and amended in 2020. The FSA’s ongoing commitment to align with the Financial Action Task Force (FATF) recommendations has led to a series of updates aimed at strengthening Japan’s financial crime prevention framework. The 2026 announcement emphasizes the need for enhanced due diligence, reporting requirements, and cooperation among financial institutions to combat illicit activities effectively.

How This Affects Your Business in Japan

Item	Cost (JPY)	Cost (USD approx)	Notes
Compliance Audit	¥100,000	$700	Legal expert consultation
AML Compliance Program	¥150,000	$1,000	Consultant fees
Staff Training	¥50,000	$350	Training provider or in-house

1. Foreign Residents Already Operating a Business in Japan
These entrepreneurs must review their compliance protocols to align with the new regulations. They should ensure that their anti-money laundering (AML) measures are robust and that staff are trained to recognize suspicious activities. Failure to comply could result in significant penalties, including fines or even business license revocation. It is advisable to consult with legal experts to conduct a compliance audit by the end of 2026.

2. Foreign Nationals Planning to Establish a New Company
New business owners must integrate AML compliance into their business plans from the outset. This includes establishing a compliance program that meets the FSA’s requirements. They should prepare to submit documentation proving their compliance measures when applying for necessary permits. Delays in compliance could hinder the business establishment process, so it is recommended to finalize compliance strategies before submitting applications.

3. Foreign Investors Who Are NOT Residents of Japan
Investors should conduct thorough due diligence on potential investments to ensure that the companies they are investing in comply with the new regulations. Understanding the compliance landscape is crucial to mitigate risks associated with financial crimes. Investors are encouraged to seek local legal counsel to navigate these complexities and ensure their investments are secure and compliant with Japanese laws.

Step-by-Step: What You Need to Do

Step 1: Conduct a Compliance Audit
Contact a legal expert specializing in financial regulations. English support is typically available.
Office: Legal Consultancy (English Support: Yes)
Cost: ¥100,000 (~$700 USD)
Time: 2-4 weeks
Pitfall: Failing to identify all compliance gaps

Step 2: Develop an AML Compliance Program
Work with compliance consultants or legal advisors. English support is generally available.
Office: Compliance Consultancy (English Support: Yes)
Cost: ¥150,000 (~$1,000 USD)
Time: 1-2 months
Pitfall: Overlooking specific industry requirements

Step 3: Train Staff on AML Regulations
Hire a training provider or use in-house resources. English support may be available.
Office: Training Provider (English Support: Limited)
Cost: ¥50,000 (~$350 USD)
Time: 1 week
Pitfall: Inadequate training materials

Step 4: Submit Compliance Documentation with Business Applications
Contact the FSA (Kinyū-chō) for guidance. English support is typically available.
Office: FSA (English Support: Yes)
Cost: ¥10,000 (~$70 USD)
Time: 1-2 weeks
Pitfall: Missing documentation

Step 5: Regularly Review and Update Compliance Measures
Schedule annual reviews with legal counsel. English support is generally available.
Office: Legal Consultancy (English Support: Yes)
Cost: ¥50,000 (~$350 USD)
Time: Ongoing
Pitfall: Neglecting updates to regulations

Key Contacts
www.jetro.go.jp/en/
www.moj.go.jp/isa/
www.fsa.go.jp/en/

Expert Analysis: Japan vs. Regional Competitors

Metric	Japan	Singapore	Hong Kong	South Korea
Incorporation Time	14 days	3 days	5 days	10 days
Minimum Capital Requirement	¥0	S$1	HK$1	₩0
Annual Filing Cost	¥60,000	S$300	HK$2,500	₩50,000
Visa Processing Time	4 weeks	2 weeks	3 weeks	5 weeks

What to Expect Next

Looking ahead, foreign entrepreneurs should monitor potential amendments to the Act on Prevention of Transfer of Criminal Proceeds and other related laws. The FSA is expected to release further guidance on compliance measures in early 2027. Entrepreneurs should stay informed about these developments to ensure their businesses remain compliant and competitive in Japan’s evolving financial landscape.

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Sources & References

This article is based on the following source and enhanced with professional analysis for foreign business owners.
Source: マネー・ローンダリング等及び金融犯罪対策の取組と課題（2026年７月）

⚠️ This article is for informational purposes only and does not constitute legal advice. Please consult a qualified Japanese attorney (bengoshi) or judicial scrivener (shiho shoshi) for advice specific to your situation.