Unpaid Reimbursements in Criminal Cases Reach ¥125.1 Billion at End of Fiscal 2023

As of the conclusion of fiscal 2023, a staggering total of ¥125.1 billion in reimbursements remains unpaid by defendants involved in various criminal activities, including drug trafficking and fraud. This figure, revealed by an inquiry from The Yomiuri Shimbun to the Supreme Public Prosecutors Office, has grown significantly from ¥44.9 billion at the end of fiscal 2007.

In cases of criminal offenses, defendants are mandated to reimburse an amount reflecting the value of assets that could be confiscated under the law. These funds are managed by prosecutors as per the Code of Criminal Procedure, ultimately contributing to the national treasury. Typically, such reimbursements are assessed alongside prison sentences and other penalties. However, challenges like insufficient assets among defendants and advanced money laundering practices employed by criminal syndicates complicate the collection process.

The data presented by the Supreme Public Prosecutors Office indicates that the total value of reimbursements owed from fiscal 2022 and earlier, along with those identified in fiscal 2023, reached ¥132.6 billion. Unfortunately, only a mere ¥6.165 billion was collected in fiscal 2023, translating to about 4.6% of the total amount owed.

In situations where defendants do not make payments for a year and the statute of limitations has lapsed, prosecutors categorize these debts as “unable to be collected.” In fiscal 2023, this uncollectible total was calculated at ¥1.364 billion, resulting in the notable ¥125.1 billion still outstanding.

Under the Punishment of Organized Crimes and Control of Proceeds of Crime Law, prosecutors have the authority to seize criminal funds up to thirty days before formally charging an individual. However, in many instances, the defendants have already disposed of the money. Recent trends show criminal organizations resorting to sophisticated methods for concealing their assets, including money laundering via offshore holdings and cryptocurrencies.

An example of this can be seen in a case involving the Osaka prefectural police, who uncovered a criminal ring handling approximately ¥10 billion monthly from online gambling and other illegal activities. The majority of these funds had been transferred overseas, complicating efforts to trace them due to jurisdictional challenges. Another instance involves funds transferred by a victim in a fraud case which were quickly converted into highly anonymized cryptocurrencies, making them even more difficult to track.

As per legal stipulations regarding remission payments, the reimbursements obtained from defendants are meant to aid the victims in their respective cases. Unfortunately, only ¥1.29 billion was mandated for victim restitution in 23 cases across the country during fiscal 2023. Delays in the reimbursement collection process significantly hinder victims' chances of recovering their losses.