Uncertain Compensation for Victims Amidst Vague Laws and Asset Concerns

Unification Church Dissolution May Not Lead to Adequate Compensation for Victims

While the dissolution order against the Unification Church, now formally known as the Family Federation for World Peace and Unification, may be seen as a victory for its victims, it may not guarantee adequate compensation for those whose lives were negatively impacted by the organization.

The current legal system in Japan presents obstacles to providing relief to victims from the dissolved group's assets. Lawyers supporting the victims have pointed out that legal provisions are "extremely vague and insufficient" and have called for new legislation to aid the victims.

Since the team of lawyers was formed in 2022, they have demanded collective bargaining from the church. As of November 2024, 194 former church members or family members have filed lawsuits seeking a total of approximately 5.8 billion yen ($39 million) in compensation for dubious sales schemes and large donations made to the church. However, relief has been slow, and many cases have moved towards court mediation.

If the dissolution order is finalized, a court will appoint a liquidator to manage the church's assets. This liquidator would likely handle compensation to victims by assessing the damage they suffered and the church's assets. The Tokyo District Court ruling on March 25th found that the church had an annual average income of about 40.9 billion yen between fiscal 2015 and 2022. As of the end of fiscal 2022, the church's net assets amounted to approximately 118.1 billion yen.

However, the Religious Corporation Law provides only vague guidelines regarding the liquidator's actions. In February, the Japan Federation of Bar Associations (JFBA) released a document urging the government to pass legislation outlining permissible actions in the event of a religious corporation's dissolution. The JFBA proposed selecting multiple liquidators instead of the single one permitted under current law and requiring church executives to cooperate with investigations and disclose important church assets. This proposed process would mirror how bankruptcy administrators handle bankruptcy cases.

When the Diet passed a bill in December 2023 to provide relief to church victims, it did not include provisions for comprehensive securing of church assets. Critics have alleged that the church has moved assets, further complicating the compensation process.

The JFBA has also called for relaxing the current provision that allows victims to seek legal help only until the dissolution order against the church is finalized. The church has opposed the JFBA document, claiming it violates freedom of religion.