JBA Institutes Countermeasures for Illicit Use of Accounts

At the Board of Directors Meeting held on September 16, JBA decided on countermeasures for deposit withdrawals using stolen passbooks and other illicit use of accounts. The Board agreed to abolish the practice of attaching seal impressions to passbooks as a deterrence against forgery and also details for suspending or canceling accounts. This was done out of recognition that banks need to strengthen measures to counter recent increases in "lock pickings" and problems involving loan sharks.

The Board also decided to implement the following four measures.

1. Meetings of concerned parties
Holding meetings of the banking industry, Financial Services Agency, Police Agency and others, to liaison and exchange information

2. Task force
Establishing a task force in JBA to gather information, cultivate know-how, facilitate exchange of information among member banks and hold seminars to enhance the industry's capability in tackling these problems.

3. Public relations activities
Strengthening public relations activities to help customers heighten their alertness and understand the importance of customer identification practices at banks

4. Amendments to model deposit contracts, rules for handling domestic fund transfers, etc.
Reviewing current contracts and rules including model deposit contracts and rules for handling domestic fund transfers


Based on above, JBA consulted with the National Police Agency and Financial Services Agency, and agreed to establish a liaison meeting (with JBA as secretariat) to exchange information, share common awareness and establish contacts for closer cooperation. The first liaison meeting was held on October 20.

The above task force was also established in the JBA secretariat on September 29 with the following guidelines.

1. Purpose
(1) To facilitate exchange of information among member banks
(2) To disseminate information on exemplary measures taken at member banks
(3) To handle inquiries from member banks
(4) To hold seminars for member banks

2. Members
Selected staff from the Planning & Coordination Dept., Public Relations Division, Business Development Dept., Consumer Relations Office, Operations Administration Dept., and Legal & Compliance Dept.
The task force is headed by the General Manager of the Business Development.

3. Term of existence
An appropriate period starting September 29, 2003


JBA also decided to implement two public relations activities in the Business Committee and Planning Committee meetings held on October 20. The first is the producing of posters/leaflets alerting customers of illicit deposit withdrawals using stolen passbooks and forged seals and of false charges by loan sharks. The second is distributing the pamphlet, "List of Contacts when Cash Cards or Passbooks are Stolen/Lost" to branches of member banks, which was produced and sent already to prefectural police headquarters, police stations and consumer centers.