On November 25, JBA finalized a draft model clause for eliminating racketeering, etc. that is to be inserted into the Agreement on Bank Transactions and announced this to the public.
In response to the “agreement to strengthen efforts to eliminate racketeering in banking transactions” that was made at the Board of Directors Meeting held in July 2007, the objective of this draft model clause is to eliminate the illicit obtainment of funds by anti-social groups (the mafia, etc.) and to discontinue relationships with such groups.
The content of this draft model clause is such that it requires the following of counterparties and their guarantors: (1) declare and pledge that they are not “racketeers, etc.”, (2) pledge that they will not make abusive or unreasonable demands that exceed legal duties or other obligations, and (3) in cases where a counterparty to a contract violates these declarations and/or pledges, said counterparty will forfeit his/her benefit of term following notification of the violation.
JBA also intends to discuss introducing clauses to eliminate racketeering and other illegal acts regarding contracts concerning deposit transactions, safe deposit box transactions and other transactions. JBA would also like to discuss strengthening liaison with the police and other authorities.