The report presented by Japan Financial Intelligence Center(JAFIC) of National Police agency in Japan has shown a significant increase in suspicious reports (STR) by financial institutes (FI).
There were 3,913 cases reported by nonbank funds transfer service operators compare to 1,391 in 2018. KYODO News writes the increase to the rapid expansion of e-money payment services that allow people to make transfers easily and with small service fees attribute the cause of increased STR. In Sept 2020; Docomo and before that Seven bank has reported stolen money from user accounts. It notifies that there are risks associated with e-money platforms.
An NPA report analyzed a total of 6,586 suspected money laundering cases which involve e-money services between 2017 and 2019, including 1,282 reported in 2017. Of the total, 904 involved a number of frequent money transfers made to many accounts after a large deposit, and 581 cases involved making repeated transfers overseas in a short period of time.
There were 58 such operators of funds transfer services in Japan in the fiscal year through March 2018, and the number rose to 75 in fiscal 2019 through March this year.
Source: NPA Report 2019
Source: Japan Today 20201108