#Japan #Compliance Station #Iwaki #Himawari Shinkin #CDL

Himawari Shinkin Bank Implements Compliance Station UBO

Himawari Shinkin Bank, headquartered in Iwaki City, Fukushima, has recently adopted the Compliance Station UBO developed by Compliance Data Lab (CDL). This platform allows for the immediate online retrieval of Ultimate Beneficial Owner (UBO) information, effectively enhancing their customer management operations.

CDL offers a compliance data management platform that addresses challenges related to corporate risk assessment. With the use of Compliance Station UBO, Himawari Shinkin Bank aims to improve efficiency in gathering and managing information related to corporate clients.

Background of the Initiative

Himawari Shinkin Bank recognized the need for an efficient method of collecting essential corporate information, particularly concerning UBO to assess the risks associated with corporate customers. In the past, information was collected through face-to-face consultations at branch offices, as well as surveys sent by mail. Challenges included a low frequency of visits by customers, high costs associated with mailing, and reduced response rates, resulting in outdated corporate information and increasing administrative burdens on staff at retail branches.

The adoption of Compliance Station UBO was driven by the ability to access hundreds of thousands of UBO records instantaneously through a high-quality corporate database maintained by Tokyo Shoko Research (TSR), a traditional corporate research company. This solution not only improves data quality but also boosts the coverage of customer information.

Advantages of the Implementation and Future Outlook

With the implementation of Compliance Station UBO, Himawari Shinkin Bank can enhance efficiency in its ongoing customer management for corporate clients. Traditionally, confirming the status of corporations along with the latest information on company names, addresses, representatives, UBOs, and shareholders required significant time and effort. However, the UBO system enables comprehensive updates of information with minimal burden, ensuring high standards of compliance management.

As Japan prepares for the FATF's fifth mutual evaluation in 2028, there is a growing demand for effective Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) measures. CDL is committed to supporting Himawari Shinkin Bank in further elevating its customer management capabilities through continuous product development and support.

Evolving Regulatory Environment

The fight against financial crimes, including advanced money laundering methods, is now a global concern. In April 2024, Japan's Ministry of Finance is set to release its "Action Plan for Combating Money Laundering, Terrorist Financing, and Financial Proliferation (2024-2026)," emphasizing the importance of adapting to changing risks and enhancing the effectiveness of domestic measures.

With incidents such as the recent Rebaton case, where approximately 4,000 corporate accounts were exploited, leading to over 70 billion yen in illicit funds being laundered, the focus on corporate account integrity has intensified.

In response, the Financial Services Agency announced on August 2024 an escalation in measures to prevent the misuse of corporate accounts, calling for stricter identification procedures during account openings and enhanced monitoring of high-risk transactions.

Consequently, many financial institutions, especially local banks and credit unions, face the challenge of managing compliance effectively within limited resources. Thus, the introduction of efficient data management methods has become an indispensable solution.

Overview of Compliance Station UBO Services

The Compliance Station UBO allows users to search for corporate names online and utilize TSR’s extensive database, enhanced with CDL's proprietary algorithms to identify UBOs accurately. Essential corporate details such as names, addresses, representatives, business types, and corporate numbers are provided swiftly. Searches can be conducted both individually and in bulk, with the capability to process up to 300,000 corporate entries in approximately three minutes, provided the corporate number is available.

The Compliance Station UBO Series Includes:

• - UBO: Standard plan offering basic company and UBO information.
• - UBO+: Includes intermediate shareholder information and capital structure charts.
• - UBO Exec: Provides executive details in addition to standard offerings.
• - UBO C&S: Offers information on suppliers and customers alongside standard details.

Glossary

* Ultimate Beneficial Owner (UBO): A natural person who holds more than 25% of voting rights—either directly or indirectly—in a corporation.

Company Overview

Compliance Data Lab, Inc. (CDL)

• - CEO: Hiroshi Yamazaki (Certified Anti-Money Laundering Specialist, Certified Global Sanctions Specialist, Master of Engineering from Johns Hopkins University)
• - Location: Marunouchi 3-2-2, Marunouchi Double Bridge Building, Chiyoda, Tokyo
• - Business: Providing compliance management data services, consulting, system development, and outsourcing services
• - Established: April 1, 2021
• - Contact: 03-6837-9665
• - Website: CDL Website

CDL's Mission and Vision

CDL is dedicated to making advanced compliance management accessible, utilizing data and technology to offer optimal services to clients and aims to be the number one solution vendor for data-driven compliance management.