The Complication of Anti-Money Laundering Measures and Taxation ―Sorting out the wandering discussion and future issues―

Although it is widely recognized that there is a profound relevancy between anti-money laundering and taxation measures, and that cooperation between both authorities is called for, the discussion in this regard has so far been left fragmented and unstructured. This paper attempts to establish a basic perspective and a framework for discussion that would serve as a basis for furthering the consideration on this issue. Specifically, the causes of the fragmentation are considered as follows: (1) the lack of differentiation in the discussion on various phases of co-operation, (2) the existence of an “twisted connectivity” in the discussion towards the desirable form of co-operation, and (3) the confusions of various characters and objectives in information sharing among the authorities. The paper then breaks down the assumed cooperative relationships into the following phases: (1) risk analysis and assessment (ex-ante phase), (2) information sharing (operational phase), and (3) deprivation of criminal proceeds (ex-post phase). It then clarifies that each phase, especially with regard to the phase (2) which is the focal segment of the issue, requires independent consideration based on relevant laws, regulations, judicial precedents, and so on. Finally, as a supplementary topic, the paper attempts to reorganize the discussion on listing tax crimes as “predicate offenses” in money laundering, as well as the issue of confiscation (deprivation of the proceeds of the crime).