#Japan #Tokyo #Ashikaga Bank #Compliance Station #Joyo Bank

Joyo Bank and Ashikaga Bank Adopt Compliance Station UBO

In a significant move towards enhancing compliance management, Joyo Bank and Ashikaga Bank have integrated the Compliance Station UBO service, developed by Compliance Data Lab (CDL) headquartered in Chiyoda, Tokyo. This service provides real-time access to essential information about ultimate beneficial owners (UBO) for the banks’ corporate clients.

CDL specializes in compliance data management solutions and offers various services aimed at addressing the challenges associated with risk evaluation for corporate entities. With the introduction of Compliance Station UBO, the banks will utilize this platform to efficiently gather and manage information on their corporate clients, ultimately leading to improved customer management practices.

The Background of Implementation

Both Joyo Bank and Ashikaga Bank were searching for a more efficient means to assess the risk associated with their corporate clients, particularly information that includes details about ultimate beneficial owners. Previously, the gathering of corporate information required utilizing various channels such as branch visits, mail, and ATMs, which often complicated the process of obtaining UBO information from less reachable accounts. The decision to implement Compliance Station UBO stemmed from the ability to access promptly updated corporate data drawn from Tokyo Shoko Research's (TSR) databases, which offer a high coverage rate of customer information.

Achievements and Future Prospects

By incorporating Compliance Station UBO into their ongoing customer management processes, both banks can gain significant advantages. Traditionally, corroborating corporate statuses and collecting up-to-date data regarding company names, addresses, officers, UBO, and shareholder information came at a considerable cost and effort. However, with this new system in place, acquiring comprehensive, timely information can be done with minimal burden, setting a new standard for effective compliance management.

With the upcoming FATF's fifth round of mutual evaluations scheduled for 2028, there's a pressing need for banks to develop more effective AML (Anti-Money Laundering) and CFT (Counter Financing of Terrorism) measures. CDL aims to further aid Joyo Bank and Ashikaga Bank in elevating their ongoing customer management practices through innovative product development and dedicated support.

Industry Context

The global landscape of combatting sophisticated financial crime, including money laundering, is rapidly expanding. In light of a behavior plan released by the Ministry of Finance for 2024-2026, it is essential to bolster domestic measures against money laundering and adapt to evolving risk environments as the July 2028 FATF evaluations approach. Recent events, such as the fraudulent transactions related to corporate accounts (notably the reported abuse of about 4,000 empty corporate accounts leading to 70 billion yen in criminal profits), reveal the urgency for enhanced strategies.

In response, the Financial Services Agency issued a request in August 2024 to strengthen measures against the misuse of corporate accounts, including enhanced verification procedures during account openings, strict monitoring of high-risk transactions, and early detection of suspicious activities. With limited resources, regional banks and credit unions must focus on advanced compliance strategies, making efficient data management methodologies critical.

Overview of Compliance Station UBO Services

The Compliance Station UBO service allows users to access a company’s information by searching its name online, leveraging data from TSR’s extensive database and CDL’s proprietary algorithms. This platform enables the identification of UBOs for target companies alongside essential details such as company name, address, representative, industry, and corporate registration number. The search function supports both single queries and bulk data processing, allowing for the handling of up to 300,000 corporate entries in approximately three minutes if corporate registration numbers are available.

Compliance Station UBO Series

• - UBO: Standard plan providing basic UBO information.
• - UBO+: Offers intermediate shareholder information and capital chain diagrams.
• - UBO Exec: Includes executive information in addition to the standard plan.
• - UBO C&S: Provides supplier and customer details along with standard information.
• - UBO Monitoring: Notifies users of any changes to the target company’s name, address, UBO, etc.

Explanation of Terms

• - Ultimate Beneficial Owner (UBO): A natural person recognized as holding more than 25% of voting rights directly or indirectly.

Company Overview

Compliance Data Lab (CDL)

• - CEO: Hiroshi Yamazaki (Certified Anti-Money Laundering Specialist, Certified Global Sanctions Specialist, Master’s in Engineering from Johns Hopkins University).
• - Location: Marunouchi Nijubashi Building, 3-2-2 Marunouchi, Chiyoda, Tokyo.
• - Services: Data services, consulting, system development, and business outsourcing related to compliance management.
• - Established: April 1, 2021.
• - Phone: 03-6837-9665.
• - Website: CDL Website

CDL's Mission and Vision

CDL’s mission is to make advanced compliance management accessible, focusing on leveraging data, technology, and expertise to deliver optimal services to clients. The company aspires to become the leading solution vendor for data-driven compliance management.