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FSA Meetings with Industry Associations during June 2025

Norbert Gehrke

Norbert Gehrke

— 5 min read
FSA Meetings with Industry Associations during June 2025

The Financial Services Agency (FSA) held a series of meetings with Japan's financial industry associations, outlining its key priorities and concerns. The discussions reveal a strong focus on enhancing governance, strengthening cybersecurity, and ensuring customer-centric operations across the entire financial system.

I. Common Points Raised Across Associations

Several key themes were consistently raised by the FSA in meetings with nearly all associations, indicating agency-wide priorities:

Strengthening Cybersecurity

    • Countermeasures for Unauthorized Access: A universal demand to urgently enhance security against phishing, malware, and other forms of unauthorized access to customer accounts, with a strong push for mandatory multi-factor authentication (MFA).
    • Transition to Post-Quantum Cryptography (PQC): The FSA stressed the need for all financial institutions to begin immediate preparations for the transition to PQC to protect against future threats from quantum computers. Institutions were told not to delay and to start creating roadmaps with their IT vendors.
    • Abolishing Password-Protected ZIP Files: The FSA explicitly called for an end to the "undesirable" and insecure practice of sending password-protected files via email, citing risks of malware infection and urging the use of secure alternatives like encrypted communication channels or secure online storage.

Anti-Money Laundering (AML) / Countering the Financing of Terrorism (CFT)

    • All institutions are required to conduct an "effectiveness verification" of their AML/CFT measures and be able to explain the results rationally and objectively, particularly in anticipation of the 5th FATF Mutual Evaluation.
    • The FSA urged institutions to review and update their practices based on the revised "Reference Cases of Suspicious Transactions" to better detect and report illicit activities.

Enhancing Internal Audits

The FSA highlighted its "Discussion Group on Enhancing Internal Audits" and announced an upcoming report in June 2025. All associations were instructed to use this report as a guide to significantly improve the level and effectiveness of their internal audit functions.

Promoting Responsible Use of AI

The FSA promoted its "AI Public-Private Forum," which held its first meeting on June 18, 2025. It encouraged active participation from all sectors to share best practices and address challenges in leveraging AI for customer benefit and operational efficiency while managing risks.

International Financial Topics (G7 Meeting)

The key outcomes of the May 2025 G7 Finance Ministers' and Central Bank Governors' Meeting were shared, covering topics such as financial stability, risks from non-bank financial intermediaries (NBFI), the benefits and risks of AI, and strengthening responses to cyber risks and financial crime.

Promotion of Japan Fintech Week

The FSA reported on the success of Japan Fintech Week 2025 and requested continued cooperation and participation for the 2026 event to foster innovation and business opportunities.

II. Association-Specific Key Points

Beyond the common themes, the FSA raised specific issues tailored to the business environment and recent events of each sector.

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