June 3, 2024 Rectification Order for Violation of the Act on Prevention of Transfer of Criminal Proceeds by Proud Dueks Inc.

 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 ; hereafter referred to as “the Act”) to Proud Dueks Inc. (Representative member: KONOSU Kazumasa, Corporation No.: 7013301032852, Head Office: Toshima-ku, Tokyo), which runs a telephone forwarding service,for its conduct in violation of the Act. The order demands that the company takes necessary measures to rectify the violation related to obligations to verify customers’ identities at the time of transaction.

1.Background of this 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 Minister for Internal Affairs and Communications that Proud Dueks Inc. which runs a telephone forwarding service was found to have violated its obligations under the Act.
 Accordingly, the MIC collected a report from the service provider and confirmed that the service provider has violated of the Act. For this reason, MIC took the administrative measure against the service provider.

2.Contents of the violation

 MIC collected a report from the company with consideration of the opinion of the National Public Safety Commission. As a result, Proud Dueks Inc. was found to have violated the obligation to verify customers' identities at the time of transaction under Article 4, Paragraph 1 of the Act.

3.Description of the order

 To rectify the violation of the Act, MIC ordered Proud Dueks Inc. on June 3, 2024, 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.

(For reference)
 ○ "About the Act on Prevention of Transfer of Criminal Proceeds (for Call Receiving Agents and Call Forwarding Service Providers)" by the MIC
 https://www.soumu.go.jp/main_sosiki/joho_tsusin/d_syohi/money/top.html

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