Public prosecutors began searching on Thursday morning the Diet and Tokyo offices of Tsukasa Akimoto, a ruling Liberal Democratic Party member of the House of Representatives, over a suspected cash smuggling scheme by a Chinese company, which allegedly violates the Foreign Exchange and Foreign Trade Law.
The company had planned to open an integrated resort (IR) in Japan.
The special investigation squad of the Tokyo District Public Prosecutors Office suspects that funds linked to the IR business was illegally transferred to Japan. They are currently investigating the connection between the case and Akimoto, 48, who was a former Cabinet Office state minister responsible for IR issues.
On Dec. 7 and 8, the squad searched the houses of Akimoto's secretaries, as well as other places believed to be connected to the suspected law violation. The special investigation team also questioned Akimoto, his former secretaries and others, on a voluntary basis.
Akimoto has denied his involvement in the wrongdoing, according to sources, and told reporters, "I don't know why [I was investigated]."
According to sources, the Chinese company is headquartered in Shenzhen and operates businesses such as online games. The company established its Japanese arm in Tokyo in July 2017.
The arm's former executive and others allegedly brought millions of yen of cash from overseas into Japan without declaring the money to customs, even though the amount exceeded 1 million yen -- the ceiling that can be imported at one time without a declaration under the law.
Since December 2016 when a law that allows casino gambling to promote the creation of integrated casino resorts was established, moves to introduce IRs have begun in a serious manner.
The head of the Chinese company made a key-note speech at an IR-related symposium in Naha in August 2017, indicating the company's enthusiasm to enter the IR business in Japan. And in January 2018, the company head, former executive of the Japanese arm and others visited the village of Rusutsu, Hokkaido, which had been bidding to host a casino resort.
Akimoto served as a Cabinet Office state minister from August 2017 to September this year and was in charge of IR until October last year. He talked about the prospects of IR business among other topics in his keynote speech at the Naha event.
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