#Japan #Tokyo #Compliance Station #TSR #Sawayaka Bank

Sawayaka Shinkin Bank's Proactive Measures Against Financial Crimes

Introduction

In an era where financial crimes like money laundering are becoming increasingly sophisticated and international, Sawayaka Shinkin Bank has made significant strides to enhance its compliance standards. Recently, it implemented the Compliance Station® UBO, a compliance solution developed by Tokyo Shoko Research (TSR), known for its extensive corporate database and data management expertise.

Background of Implementation

Sawayaka Shinkin Bank was looking for more efficient methods to gather corporate information necessary for risk assessment, particularly regarding Ultimate Beneficial Owners (UBOs). Previously, the bank relied on postal questionnaires, which faced challenges such as high postal costs, low response rates, and the burden on branch administrative tasks. Recognizing these issues, Sawayaka decided to utilize TSR's regularly updated corporate database to swiftly access UBO information. This new approach is expected to increase customer coverage significantly.

Expected Achievements with Implementation

The introduction of the Compliance Station® UBO will streamline the bank's continuous customer management operations for its corporate clients. Traditionally, verifying corporate realities and collecting up-to-date information about company names, addresses, representatives, UBOs, and shareholders required substantial effort and resources. With this system in place, Sawayaka can now gather comprehensive and current information with reduced burden, ultimately achieving advanced compliance management.

Future Outlook

As Japan prepares for the FATF's fifth round of mutual evaluations in 2028, there is a pressing demand for effective Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) strategies. Sawayaka Shinkin Bank is committed to continuing improvements in customer management practices, bolstering its response to regulatory changes, and optimizing product development and support.

The Evolving Landscape of Financial Regulations

Recent years have seen a dramatic uptick in financial crimes, prompting calls for more robust countermeasures. The Ministry of Finance released an action plan for 2024-2026 emphasizing the need for effective domestic AML and CFT measures, and the ability to adapt to changing risk environments. Additionally, with the upcoming FATF evaluations, there is significant pressure on financial institutions to enhance their strategies.

One critical issue has been the increase in fraudulent transactions involving corporate accounts, exemplified by the so-called