1-117 Shukuatocho, Nakamura Ward, Nagoya, Aichi, Japan
Official reason
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today took action against the Kodo-kai, a major second-tier affiliate of the Yamaguchi-gumi, the largest and most prominent Japanese Yakuza syndicate. The Kodo-kai and its chairman, Teruaki Takeuchi were designated pursuant to Executive Order (E.O.) 13581, which targets significant transnational criminal organizations (TCOs) and their supporters. The Kodo-kai is known to be the most violent faction within the Yamaguchi-gumi and is headquartered in Nagoya, Japan with about 4,000 members. Japan’s National Police Agency has reported that weakening the powerful Yamaguchi-gumi is a high priority task and requires tackling the Kodo-kai, which supports the expansion of its parent syndicate. Among other criminal activities, the Kodo-kai has conducted extortion and engaged in bribery on behalf of the Yamaguchi-gumi and has gained prominence in part for its financial muscle. OFAC also is imposing sanctions on Teruaki Takeuchi, the chairman of the Kodo-kai. Kiyoshi Takayama, who is the former Kodo-kai chairman and is the deputy godfather of the Yamaguchi-gumi, promoted Takeuchi as the new chairman of the Kodo-kai in September 2013 and reportedly considers Takeuchi to be his closest advisor. As a result of today’s actions, all assets of the Kodo-kai and of Takeuchi that are based in the United States or are in the control of U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with them.
Transnational Criminal Organizations Sanctions Regulations, 31 C.F.R. part 590;
Executive Order 13581 of July 24, 2011 Blocking Property of Transnational Criminal Organizations
Regime
OFAC-horizontal
Target State
Criminal organizations
Measures
Blocking Property
Official Information
On January 12, 2012, OFAC issued the Transnational Criminal Organizations Sanctions Regulations, 31 CFR part 590 (77 FR 1864, January 12, 2012) (the “Regulations”), to implement Executive Order (E.O.) 13581 of July 24, 2011, “Blocking Property of Transnational Criminal Organizations” (76 FR 44757, July 27, 2011), pursuant to authorities delegated to the Secretary of the Treasury in E.O. 13581. The Regulations were initially issued in abbreviated form for the purpose of providing immediate guidance to the public. OFAC amended the Regulations on July 23, 2019 (84 FR 35307, July 23, 2019) to implement E.O. 13863 of March 15, 2019, “Taking Additional Steps to Address the National Emergency With Respect to Significant Transnational Criminal Organizations” (84 FR 10255, March 19, 2019), which amended E.O. 13581. OFAC is amending and reissuing the Regulations as a more comprehensive set of regulations that includes additional interpretive guidance and definitions, general licenses, and other regulatory provisions that will provide further guidance to the public. Due to the number of regulatory sections being updated or added, OFAC is reissuing the Regulations in their entirety.
E.O. 13581 On July 24, 2011, the President, invoking the authority of, inter alia, the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), issued E.O. 13581. In E.O. 13581, the President found that the activities of significant transnational criminal organizations, such as those listed in the Annex to E.O. 13581, have reached such scope and gravity that they threaten the stability of international political and economic systems. The President further found that such organizations are becoming increasingly sophisticated and dangerous to the United States; they are increasingly entrenched in the operations of foreign governments and the international financial system, thereby weakening democratic institutions, degrading the rule of law, and undermining economic markets. The President stated these organizations facilitate and aggravate violent civil conflicts and increasingly facilitate the activities of other dangerous persons. The President determined that the activities of significant transnational criminal organizations constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and declared a national emergency to deal with that threat.
