Japan’s parliament passed a law on Wednesday to strengthen monitoring of the movement of assets of religious corporations that may be subject to legal claims, as the nation moves to protect people caught up in exploitative fundraising practices such as those employed by the Unification Church.
The legislation was drafted amid concerns that the Unification Church, which could lose its religious corporation status and associated tax benefits as a result of the government’s ongoing legal action, may seek to transfer assets subject to compensation claims in Japan to other jurisdictions.
Under the law, a group at risk of losing its religious corporation status must notify central or prefectural government authorities at least one month in advance of any plan to dispose of assets. If no notice is given, the organisation would be prohibited from further liquidation.
Religious corporations whose status is under review will be asked to submit portfolio breakdowns every three months instead of annually. If the group is suspected of hiding assets, victims would have the right to see copies of relevant documents.
Amid criticism of the Unification Church’s fundraising and other allegedly harmful practices, the government filed a petition with the Tokyo District Court in October to dissolve the Japanese branch of the South Korea-headquartered group, formally called the Family Federation for World Peace and Unification.
Faced with public anger over its practices, the Japanese branch has said it plans to set aside up to 10 billion yen ($68 million) to cover possible compensation claims from former members and their families over forced donations.
A group of lawyers assisting victims in Japan said about 130 people had suffered financial hardship as a result of the religious group’s forced donations, with damages estimated at more than 4 billion yen.
However, the lawyers believe there are many more unconfirmed cases, meaning the total figure could eventually rise to around 100 billion yen.
The Unification Church’s practices came into the public eye after the assassination of former Prime Minister Shinzo Abe in July 2022 by a man who claimed to hold a grudge against the organisation over financially ruinous donations made by his mother.
Tetsuya Yamagami, who has been charged with the shooting, told investigators that he targeted Abe because the politician’s grandfather, former Prime Minister Nobusuke Kishi, helped found the religious group in Japan in the 1960s.