Book Review: Money Laundering
| DOI | 10.1350/jcla.2007.71.1.88 |
| Published date | 01 February 2007 |
| Author | Colin P. A. Jones |
| Date | 01 February 2007 |
| Subject Matter | Book Review |
Takashi Kadokura, Money Laundering, Japanese Book Notes*
(2006) ISBN: 4–413–04154-2
There does not seem to be much on the subject of money laundering in
Japan, even in Japanese. Economist Takashi Kadokura is one of the few
people writing about it for the general reader, and Man¯e rondaringu
[Money Laundering], his most recent book, is thus a welcome addition to
the literature.1
Being an introduction for the general reader the work covers a lot of
ground that will be familiar to those acquainted with some of the
literature available in English: what money laundering is, why it hap-
pens, the role of foreign tax havens in facilitating it, and the efforts of the
OECD to reign in these jurisdictions. At least some of the cast of
characters will also be familiar—organised crime syndicates, drug deal-
ers, underground casinos (which offer better odds than the various
forms of government-backed gambling), corrupt politicians, dodgy front
companies, Halawal-type international money transfer networks (pro-
viding faster and cheaper service than banks),2 as well as legitimate
financial institutions that (unwittingly or not) facilitate money-
laundering activities.3
Other aspects of the problem may be peculiar to Japan. The role of
North Korea, for example, both as a source of dirty (not to mention
counterfeit) money, but also as a destination for laundered funds. For
example, the amount of money supposedly transferred annually from
Korean-affiliated pachinko parlours to North Korea in order to avoid
Japanese taxes is estimated at over ¥200 billion annually. And according
to Kadokura, North Korea’s July 2006 missile test over Japan may have
* This review is part of a series on non-academic works in Japanese on law-related
subjects which it is hoped will provide some insights into the way the legal system
in Japan is explained to and understood by the general public in that country. Prior
works in this series by the reviewer include Saiban’in Seido: Prospects for Citizen
Participation in Criminal Trials in Japan, 15 Pac Rim L & Pol J 363 (February 2006),
Kaoru Inoue’s Shih¯o no Shaberisugi [Blabbermouth Judiciary]: Moral Relief, Legal
Reasoning and Judicial Activism in Japan, 19 Emory Int’l L Rev 1563 (2005).
1 Kadokura’s other books include both an exposé of Japan’s underground economy
and, this being Japan, an introduction to the same subject in manga (cartoon) form.
2 The Halawal networks received a certain amount of attention after 9/11 due to the
supposed role they play in the financing of Islamic terrorism. According to data
presented by Kadokura, in Japan these networks (called ‘underground banks’ (chika
gink¯o) by law enforcement officials) are more often associated with Chinese and
other Asian communities in Japan (including illegal immigrant workers) which use
them to remit money to their respective home countries. Ibid. at 88.
3 For example, the Hong Kong branch of Crédit Suisse was supposedly used as a
transit point for money earned by the Yamaguchi-gumi syndicate to transfer money
earned from its loan-shark activities in Japan to accounts in Switzerland.
88
Book Review
been primarily an expression of anger over increasingly aggressive US
efforts to cut off Pyongyang’s access to its network of dirty money.4
It may also be the case that certain types of profitable criminal
behaviour are a specialty in Japan. For example, unlicensed money-
lenders (yamikin), who lend at criminally usurious rates (10–40 per cent
every 10 days or greater) generate tremendous profits for the criminal
syndicates of which they are often affiliated. Other criminal groups
generate significant income through various types of furikome sagi
(‘transfer money!’ fraud), which basically involve calling up strangers
and pretending to be a troubled relative needing money transferred—
right now! The caller might say ‘It’s me! I just had a car accident with a
Yakuza and he wants money NOW!’ Or ‘It’s me! I got a girl pregnant and
she needs an abortion right away!’5 This can, apparently, be made to
work if the target is elderly or gullible, the caller sounds suitably...
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