December 27, 2022 Rectification Order to Zoomnet LLC for Violation of Act on Prevention of Transfer of Criminal Proceeds

The Ministry of Internal Affairs and Communications (MIC) issued a rectification order based on the provisions of Article 18 of the Act on Prevention of Transfer of Criminal Proceeds (Act No. 22 of 2007) to Zoomnet LLC (representative member: YASHIMA Kotaro; Corporation Number: 9011103009852; head office: Shinjuku Ward, Tokyo), which runs a telephone forwarding service, for its conduct in violation of the Act.

1. Background to the case

The Act on Prevention of Transfer of Criminal Proceeds (hereinafter, the "Act") imposes obligations on specified business operators to verify customers' identities at the time of conducting certain types of transactions and to keep identification records. Telephone forwarding service providers are defined as specified business operators under the Act.
The National Public Safety Commission stated its opinion in accordance with the Act to the Minister for Internal Affairs and Communications that Zoomnet LLC, which runs a telephone forwarding service, was found to have violated its obligations under the Act.
Accordingly, MIC collected a report from the service provider and confirmed that the service provider has violated the Act. For this reason, MIC took the administrative measure against the service provider.

2. Details of violation

MIC collected a report from the service provider with consideration of the opinion of the National Public Safety Commission. As a result, Zoomnet was found to have violated the obligation to verify customers' identities at the time of the transaction under Article 4, Paragraph 1 of the Act and the obligation to keep identification records under Article 6, Paragraph 1 of the Act.

3. Details of order

To rectify the violation of the Act, MIC ordered Zoomnet on December 27, 2022, to take the necessary measures, including thoroughly understanding and ensuring compliance with the relevant laws and regulations, and formulating measures to prevent the recurrence of the violation, pursuant to the provisions of Article 18 of the Act.

• *
  The published materials are in Japanese only.