The US Declares War On The Yakuza

On July 24th, President Barack Obama declared war on the yakuza (ヤクザ）aka The Japanese mafia, in an executive order which stated that “(the yakuza) 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.  These organizations facilitate and aggravate violent civil conflicts and increasingly facilitate the activities of other dangerous persons.  I therefore determine that significant transnational criminal organizations constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States, and hereby declare a national emergency to deal with that threat.”

The yakuza were one of four international organized crime groups (in federal law enforcement terms “transnational criminal organizations”) singled out by the President in his order. The order is meant to give the United States new tools and methods to break the economic power of transnational organized crime and protect the financial markets. It will assist the US federal government’s efforts to disrupt, destroy and defeat the international organizations that pose a significant threat to U.S. national security, foreign policy or the economy.

As a result of the order, any property in the United States or in the possession or control of U.S. persons in which the yakuza have an interest will be blocked, and U.S. citizens are prohibited from engaging in transactions with the yakuza, or their affiliated companies. The order also authorizes the U.S. Department of the Treasury, in consultation with the Departments of Justice and State, to identify for sanctions any individual or entity determined to have materially assisted, sponsored or provided financial, material or technological support for any person whose property and interests in property are blocked pursuant to the executive order.

In the past, Citibank has been punished by the Japanese Financial Services Agency twice (2004 and 2009) for aiding and abetting money laundering by yakuza members; there was no punishment from the US side. In 2004-2006, Immigration Customs Enforcement (ICE) seized close to a million dollars worth of assets in the United States owned by Kajiyama Susumu, the so-called emperor of loan sharks, and a Yamaguchi-gumi Goryokai （旧山口組五菱会・元山口組清水一家）member. UCLA from 2000-2003, received close to two million dollars in money from four individuals who were yakuza or associates of the yakuza, in exchange for liver transplants conducted at UCLA hospitals.

It remains to be seen how this executive order will effect yakuza operations within the United States or whether this will also effect US companies in Japan that do business with the yakuza or their “shell-corporations.”

On September 30th, 2009, Ando Takaharu, the head Japan’s National Police Agency declared war on Japan’s largest organized crime group, the Yamaguchi-gumi (40,000 members), and pushed for a dismantling of the main faction of the group, the Kodo-kai (山口組弘道会) (3,000-4,000 members). The nearly two year “war on the yakuza” in Japan has resulted in the arrest of the number one and number two most powerful members of the Kodo-kai and dealt a huge blow to that faction, if not the Yamaguchi-gumi itself.

Reddit Japan has posted this blog entry, if you feel like adding your own comments or insight.

The text of the actual executive order follows. The annex refers to the four international crime groups mentioned above of which the yakuza are included.

EXECUTIVE ORDER

BLOCKING PROPERTY OF TRANSNATIONAL CRIMINAL ORGANIZATIONS

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA), and section 301 of title 3, United States Code,

I, BARACK OBAMA, President of the United States of America, find that the activities of significant transnational criminal organizations, such as those listed in the Annex to this order, have reached such scope and gravity that they threaten the stability of international political and economic systems.  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.  These organizations facilitate and aggravate violent civil conflicts and increasingly facilitate the activities of other dangerous persons.  I therefore determine that significant transnational criminal organizations constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States, and hereby declare a national emergency to deal with that threat.

Accordingly, I hereby order:

Section 1.  (a)  All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any overseas branch, of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in:

(i)   the persons listed in the Annex to this order and

(ii)  any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State:

(A)  to be a foreign person that constitutes a significant transnational criminal organization;

(B)  to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any person whose property and interests in property are blocked pursuant to this order; or

(C)  to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order.

(b)  I hereby determine that the making of donations of the types of articles specified in section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to this order would seriously impair my ability to deal with the national emergency declared in this order, and I hereby prohibit such donations as provided by subsection (a) of this section.

(c)  The prohibitions in subsection (a) of this section include, but are not limited to:

(i)   the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to this order; and

(ii)  the receipt of any contribution or provision of funds, goods, or services from any such person.

(d)  The prohibitions in subsection (a) of this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted prior to the effective date of this order.

Sec. 2.  (a)  Any transaction by a United States person or within the United States that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions set forth in this order is prohibited.

(b)  Any conspiracy formed to violate any of the prohibitions set forth in this order is prohibited.

Sec. 3.  For the purposes of this order:

(a)  the term “person” means an individual or entity;

(b)  the term “entity” means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization;

(c)  the term “United States person” means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States;

(d)  the term “foreign person” means any citizen or national of a foreign state, or any entity organized under the laws of a foreign state or existing in a foreign state, including any such individual or entity who is also a United States person; and

(e)  the term “significant transnational criminal organization” means a group of persons, such as those listed in the Annex to this order, that includes one or more foreign persons; that engages in an ongoing pattern of serious criminal activity involving the jurisdictions of at least two foreign states; and that threatens the national security, foreign policy, or economy of the United States.

Sec. 4.  For those persons whose property and interests in property are blocked pursuant to this order who might have a constitutional presence in the United States, I find that because of the ability to transfer funds or other assets instantaneously, prior notice to such persons of measures to be taken pursuant to this order would render these measures ineffectual.  I therefore determine that for these measures to be effective in addressing the national emergency declared in this order, there need be no prior notice of a listing or determination made pursuant to section 1(a) of this order.

Sec. 5.  The Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA, as may be necessary to carry out the purposes of this order.  The Secretary of the Treasury may redelegate any of these functions to other officers and agencies of the United States Government consistent with applicable law.  All agencies of the United States Government are hereby directed to take all appropriate measures within their authority to carry out the provisions of this order.

Sec. 6.  The Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, is hereby authorized to submit the recurring and final reports to the Congress on the national emergency declared in this order, consistent with section 401(c) of the NEA (50 U.S.C. 1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).

Sec. 7.  The Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, is hereby authorized to determine that circumstances no longer warrant the blocking of the property and interests in property of a person listed in the Annex to this order, and to take necessary action to give effect to that determination.

Sec. 8.  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Sec. 9.  This order is effective at 12:01 a.m. eastern daylight time on July 25, 2011.

BARACK OBAMA

THE WHITE HOUSE,
July 24, 2011.