The Act on Prevention of Transfer of Criminal Proceeds requires verification at the time of transaction. When the client is a corporation, the institution confirms its name and head office address, the purpose of the transaction, the nature of its business, and its beneficial owner (the individual who can effectively control its business)1. The results go into a verification record, which is kept for seven years2.

Some Financial Services Agency documents add the English abbreviation KYC to the Japanese term for customer identification3. This site uses "KYC" for checking clients in general and "verification at the time of transaction" for the procedure under the Act4.

Notes

  1. "犯罪による収益の移転防止に関する法律" (Act on Prevention of Transfer of Criminal Proceeds, in Japanese), Article 4, paragraph 1. ↩

  2. "犯罪による収益の移転防止に関する法律" (Act on Prevention of Transfer of Criminal Proceeds, in Japanese), Article 6. ↩

  3. Financial Services Agency, "「FinTech実証実験ハブ」支援決定案件の実験結果について" (Results of the experiment supported by the FinTech Proof-of-Concept Hub) (March 2026), "実験概要" (Outline of the experiment) (in Japanese). ↩

  4. The term for verification at the time of transaction is in Article 4, paragraph 6 of the "犯罪による収益の移転防止に関する法律" (Act on Prevention of Transfer of Criminal Proceeds, in Japanese). ↩