Japan has failed to address deficiencies in its measures to halt money laundering and terrorist financing, and should step up its efforts to do so, the Financial Action Task Force said.
The measures should include "necessary legislation," the FATF, which is sponsored by the Organisation for Economic Co-operation and Development, said in a statement posted on its website.
The biggest deficiencies include the incomplete criminalization of terrorist financing and an incomplete mechanism for freezing terrorist assets, it said, without being more specific.