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Wednesday, October 23, 2013

Yakuza Bosses Whacked by Regulators Freezing AmEx Cards

By Terje Langeland & Takahiko Hyuga

Bloomberg News - - Oct 23, 2013

The yakuza, Japan’s organized-crime syndicates that have reaped billions from activities ranging from extortion to human trafficking, are finding their ranks decimated by authorities employing methods similar to those used to jail Al Capone: going after their money.

Japan’s Financial Services Agency delivered the latest blow, last month ordering Mizuho Financial Group Inc. to improve compliance and then demanding that top executives report by Oct. 28 what they knew and when about a consumer-credit affiliate found making loans to crime groups.

The regulator’s slap adds to pressure from yakuza-exclusion ordinances enacted nationwide in 2011 making it illegal to do business with gang members, as well as a U.S. executive order that year requiring financial institutions to freeze yakuza assets. The U.S. Treasury Department so far has frozen about $55,000 of yakuza holdings including two Japan-issued American Express cards, according to documents obtained by Bloomberg News under the Freedom of Information Act. 

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