This paper surveys the recent literature on the Japanese distribution system to consider two propositions: first, that the system is inefficient, and second that prices of imported products tend to be higher in Japan than in other markets. Most of the literature demonstrates that the system is efficient. However, the efficiency has not necessarily resulted in high social welfare as consumers have had limited access to various product lines or paid high prices for some products. This paper examines the distribution system in the automobile industry to promote understanding about the impacts of the system on price differentials.
, controlled Keiretsu retail stores and distributed their products to these stores through their sales firms. Keiretsu stores sold only their manufacturers’ products. The sales share of Keiretsu stores accounted for 43.3 percent in 1990.
1/ The JFTC (1990) showed that 100 percent of sampled imported cardealers completely purchased automobiles from suppliers while 80 percent of Japanese cardealers did so. In addition, 94.4 percent of the former could not return products while only 60 percent of the later could not do so. Therefore, 72.2 percent of the former replied
professions, such as casinos may be highly regulated in some countries but not in others. Some may not be regulated beyond the basic requirements of incorporation, as may be true of cardealers. Considerable outreach resources are likely to be needed to bring such professions up to an acceptable level of compliance with the reporting requirements. The nature of the reports provided by accounting and legal professionals are bound to be very different from those provided by financial institutions. Complex company structures and trust arrangements require specialized expertise
International Monetary Fund. Western Hemisphere Dept.
Superintendence of Markets (SMV) and the Superintendence of Insurance (SSRP) on AML/CFT regulations and supervision. LEG has also assisted the IS in enhancing its institutional capacity to deal with GAFILAT’s reporting requirements and regulations. Such assistance has targeted strengthening the supervision framework on lawyers, notaries, real estate and construction sector, considered as high-risk areas. New sectors such as precious- metal dealers, armor-carriers and used-cardealers are in the technical assistance agenda for 2019. The authorities highly appreciate the Fund
), real estate agents, and jewelers. The obligations also apply to lottery agents and cardealers. For the DNFBPs, the main ML/FT risk exposure appears to be related to cross-border transactions conducted through the international financial services sector, or connected with real estate transactions in the tourism sector. SVG has an active trust and company services sector focused primarily on formation and management of international business corporations (IBCs), and trust administration. They are required to be licensed by the IFSA. Tourism-related real estate
parts were found at auto parts outlets in either Tokyo or Osaka, which raised questions about the ability of U.S. parts suppliers to have fair access to the Japanese after-purchase market. The report further emphasized that “genuine” parts manufacturers controlled the Japanese after-purchase market, which might have significantly affected an automobile parts trade imbalance accounting for one quarter of the total U.S. trade deficit with Japan in 1990.
As in the case of imported automobiles, import cardealers and sales subsidiaries of foreign automobile
, lottery agents, lawyers, notaries, accountants, RAs and trustees, real estate agents, and jewelers. Cardealers, while not DNFBPs under FATF definitions, are included subject to the same AML/CFT requirements as jewelers and are included in the discussion of DNFBPs.
59. Two casinos operate in SVG, one being a small, local club in Saint Vincent with a limited number of regular patrons, the other being a relatively new operation in a large upscale resort on Canouan Island. The casino in St. Vincent consists of three card tables, two roulette wheels, and about
This paper discusses key findings of the Detailed Assessment on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) for the Republic of Latvia. The assessment reveals that aspects of Latvia’s financial services market expose it to a high risk of money laundering. There are welcome indications that money laundering risks have been reduced substantially owing to strong preventive measures being implemented by the authorities and financial institutions. The authorities and financial institutions are working to restore the international reputation of the Latvian financial sector.
St. Vincent and the Grenadines (SVG) is exposed to money laundering (ML) and financing of terrorism (FT) risk related to drug trafficking and international criminal groups. The financing of terrorism has also been criminalized and is largely in conformity with the Suppression of the Financing of Terrorism (SFT) Convention. The legal and institutional framework regarding the cross-border transportation of cash and bearer instruments is largely in place. The preventive measures regime covers most of the financial and designated nonfinancial businesses and professions (DNFBP) sectors as required under the Financial Action Task Force (FATF) Recommendations.
International Monetary Fund. Monetary and Capital Markets Department
commercial practices related to the offering of insurance products by cardealers . The products in question were policies that cover the difference between the value of a new replacement vehicle and an insurer’s claim payment in the event of total loss of a vehicle. 30 Consumer dissatisfaction with sales practices included incomplete or inadequate explanations or disclosures and the sales tactics used to sell the products. Several notices were published by AMF to inform insurers and cardealers of their obligations and responsibilities. AMF reviewed the business