The global movement to freeze
assets linked to terrorism
has been more vigorous than
ever following the September
11, 2001 terrorist attacks
on the United States. Similarly,
the U.N. Security Council
has adopted various resolutions
that call on countries to
develop mechanisms for freezing
assets held by terrorists.
Based on these resolutions,
Japan, too, has put measures
in place to freeze such
assets. Japanese laws governing
international money orders
and trade now require permission
before payments (remittances)
or capital transactions
can be made to or with individuals
or groups subject to asset-freezing
measures. Unauthorized transactions
are subsequently dealt with
by freezing such assets
or through the imposition
of other measures.
Furthermore, amendments
to the present Foreign Exchange
and Foreign Trade Control
Law mandate that financial
institutions follow specific
action guidelines in the
effort to verify the identity
of their customers. Additionally,
fund transfers from Japan
to foreign countries in
excess of a set amount,
as well as deposits and
other capital transactions
by non-residents, are now
considered transactions
for which customer identification
is required.
The items that these measures
target are considered part
of a broader range of measures
to combat money laundering,
which require the monitoring
and confirmation of fund
settlement messages, that
are already under way at
financial institutions in
Japan and elsewhere.
HotScan is a package that
uses a proprietary algorithm
to scan fund settlement
messages containing these
specific sanctioned items
to prevent such messages
from ever being transmitted.
※HotScan is a registered
trademark of Logica.
For further information on Logica's financial service solutions, please refer to
this website.
