History of Financial Services Agency
The Financial Supervisory Agency was established in 1998 to provide an audit of financial institutions. With the establishment of a Financial Restructuring Commission (FRC) in December 1998, the Financial Services Agency became an organization under the authority of the Financial Restructuring Commission. The Financial Services Agency (FSA) was established in 2000 under the authority of the FRC through the reorganization of the Financial Supervisory Authority. With the reorganization of central government ministries, the FSA became the external body of the Council of Ministers, and with the abolition of the FRC, the FSA became Japan's primary financial regulator.
What are the Roles of the Financial Services Agency (FSA)?
The main task of the Financial Services Agency is to ensure the stability and preservation of the Japanese economy. Also, the FSA has the authority to plan and policy on financial systems in Japan. The FSA is responsible for protecting the rights of investors and depositors. FSA plays a key role in the development of Japan's economy. The FSA is also responsible for the prevention of financial crimes. In this respect, it supervises financial institutions. Financial institutions have to comply with FSA regulations. Therefore financial institutions should check the FSA register.
- Policy-making and planning for financial systems
- Making rules and regulations for the trading market
- Establishing standards for business accounting.
- Determination of compliance criteria for financial institutions.
- Auditing and regulation of financial advisors and auditors
- Participation in the activities of international organizations
- Improve financial management.
Who is Supervised and Regulated by the FSA?
The Financial Services Agency has the authority to supervise and regulate the following organizations:
- Insurance Companies
- Accountants and Audit Firms
- Investment Companies
- Payment Service Providers
- Credit Card Companies
- Cryptocurrency exchange
AML in Japan
Japan is a founding member of the Financial Action Task Force. Japan is taking effective steps in the fight against financial crimes. Japan is pursuing a FATF-compliant policy to combat financial crimes. FSA informs financial institutions to prevent money laundering and the financing of terrorism. Fines and sanctions are imposed on organizations that do not meet AML requirements.
Financial institutions in Japan can comply with global and local AML regulations using AML compliance software such as Sanction Scanner. Sanction Scanner protects companies from financial crime threats with the sanction and PEP screening services. You can contact us for more information about our solutions.