March 28, 2022 Rectification Order to Sole Proprietor 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; hereinafter referred to as “the Act”) to a sole proprietor, TOMIOKA Ikuhito, who runs a telephone forwarding service (under the trade name of EXLine; located in Shibuya Ward, Tokyo), for his conduct in violation of the Act. The order demands that the sole proprietor take necessary measures to rectify the violation related to the obligations to verify customers' identities at the time of transaction and to keep identification records.

1. Background of case

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 TOMIOKA Ikuhito, a sole proprietor who runs a telephone forwarding service under the trade name of "EXLine," was found to have violated his 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. Contents of violation

MIC collected a report from the sole proprietor with consideration of the opinion of the National Public Safety Commission. As a result, TOMIOKA Ikuhito was found to have violated the obligation to verify customers' identities at the time of 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. Contents of order

To rectify the violation of the Act, MIC ordered TOMIOKA Ikuhito on March 28, 2022, to take 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.