2024/07/15

How the Mighty Yakuza was Tamed in the 21st Century. And What Sumo Tournaments Have to Do with It?

Article about the downfall of Yakuza in 21 century's Japan and how the Japanese government adjusted legal regulations so that yakuza is now weaker.

The Sumo Tournament That Drove the Yakuza Underground

 

It was a July day in 2009, and the atmosphere at the sumo arena in Nagoya was thick with tension. Thousands of spectators, including families, tourists, and fans of this traditional sport, awaited the start of the tournament. Sumo, a symbol of strength and honor, was about to fill the arena with the powerful collisions of the wrestlers. The spotlights illuminated the ring, and the shadows cast by the massive wrestlers danced on the sand of the dohyo.

 

Suddenly, the eyes of the audience turned to the front rows. There, in seats usually reserved for the most important guests, sat a group of men whose presence seemed out of place. Their dark suits, piercing gazes, and the confidence with which they moved immediately raised suspicions. These were members of Yamaguchi-gumi, the most powerful crime syndicate in Japan, part of the Yakuza mafia.

 

Their presence was more than just a symbolic display of strength. Sitting in the front rows, they were sending a signal to their imprisoned leader, Kenichi Shinoda. Their gesture, though silent, spoke loudly: "We are here, we support you, we have not disappeared." What was meant to be a subtle message quickly turned into a national scandal.

 

The reaction of the police and society was immediate. The violation of the agreement between the Yakuza and the National Police Agency (NPA) to avoid public parades enraged the authorities. This incident became a catalyst for the introduction of stringent anti-Yakuza regulations aimed at limiting their influence.

 

Under the leadership of Takaharu Ando, the police launched a campaign to introduce local legislation against the Yakuza. Prefectures across Japan, initially supported by Fukuoka and later by Tokyo and Osaka, began implementing laws prohibiting companies and businesses from conducting any dealings with Yakuza members. Banks, telecommunications companies, rental agencies, and other institutions were forced to include clauses in their contracts that excluded the possibility of cooperation with the Yakuza.

 

The far-reaching consequences of this incident were visible within a few years. The number of Yakuza members dropped from 80,000 in 2011 to 24,000 in 2021. Former gangsters trying to start new lives encountered numerous difficulties, and the Yakuza, though still present, had to adapt to a new reality, transforming their operations and going deeper underground.

The incident at the 2009 sumo tournament was not only a turning point in the history of the Yakuza but also the beginning of a new era in the fight against organized crime in Japan.

 

Article about the downfall of Yakuza in 21 century's Japan and how the Japanese government adjusted legal regulations so that yakuza is now weaker.

 

A Brief History of the Yakuza

 

The Yakuza, the Japanese mafia, originated from groups known as bakuto (gamblers) and tekiya (street vendors), which existed during the Edo period (1603-1868). After World War II, the Yakuza transformed into more organized crime syndicates, such as Yamaguchi-gumi, Sumiyoshi-kai, and Inagawa-kai. These organizations engaged in various illegal activities, including gambling, prostitution, extortion, and drug trafficking, becoming powerful forces in Japan's underworld.

 

At the beginning of the 21st century, the Yakuza operated legally and openly in Japan. These organizations had official offices, and their members carried business cards with the names of their syndicates. To become a member of the Yakuza, a candidate had to undergo an initiation process that included swearing loyalty to the organization and its leader. Yakuza members enjoyed certain privileges, such as protection from rival gangs and financial support in difficult situations. The Yakuza also engaged in charitable activities and often presented themselves as protectors of local communities.

 

For more information on the history of the Yakuza, see here: >> What is the Yakuza? - Can One Be a Bloody Gangster, Honorable Samurai, Drug Baron, and Contemporary Robin Hood All in One?

 

Article about the downfall of Yakuza in 21 century's Japan and how the Japanese government adjusted legal regulations so that yakuza is now weaker.

 

The Role of Media and Society in the Fight Against the Yakuza

 

The outrage of the police and society after the incident at the 2009 sumo tournament was immediate and decisive. This event became a flashpoint that triggered a wave of media reports and public discussions about the Yakuza's influence in Japan. The presence of Yamaguchi-gumi members in seats reserved for the most important guests sparked huge controversy. The media quickly picked up the topic, highlighting the incident and forcing society to look at the problem from a different perspective.

 

The media's coverage of the incident was crucial in increasing control over the Yakuza. Following this event, television reports, newspaper articles, and discussions in public affairs programs caused widespread outrage. Journalists, including foreign ones like Jake Adelstein, used their platforms to expose the Yakuza's activities and influence in various sectors of society. The media's coverage led to increased public awareness of the problem and heightened pressure on authorities to take decisive action.

 

The impact of public opinion on the actions of the police and politicians was immense. Social outrage forced the National Police Agency (NPA) to introduce stricter regulations and intensify actions against the Yakuza. Under public pressure, prefectures across Japan began implementing local legislation prohibiting businesses from dealing with Yakuza members. Local authorities and companies were forced to sever all ties with criminal gangs, and the media continued to highlight any cases of violations of these regulations.

 

Article about the downfall of Yakuza in 21 century's Japan and how the Japanese government adjusted legal regulations so that yakuza is now weaker.

 

Introduction and Enforcement of Legislation Against the Yakuza

 

After the incident at the 2009 sumo tournament, which made society aware of the open and unpunished actions of the Yakuza, the National Police Agency (NPA) undertook intensive measures to limit the influence of these organizations. The legislative process began at the local level because the NPA believed that too many national-level parliamentarians had connections with the Yakuza. Prefectures started introducing regulations aimed at cutting off the Yakuza from legal sources of income and making it difficult for them to operate in society.

 

Before the introduction of new regulations, Yakuza members (being a member of the Yakuza is legal) could easily open bank accounts, take out loans, and invest in various financial ventures. Banks were not required to check their clients' affiliations with organizations (including criminal ones). Renting properties also did not pose a problem for gangsters – they rented offices and apartments, often officially registering them as the headquarters of their businesses. Companies, in turn, could freely conduct business with the Yakuza, using their security, debt collection, or investment services. The Yakuza was present in many legitimate industries, such as construction, transportation, and entertainment.

 

Before the introduction of these regulations, the Yakuza was widely involved in various sectors of the economy. Yakuza members ran restaurants, nightclubs, construction companies, and even legitimate security businesses. They were present in industries such as entertainment, transportation, and real estate. Thanks to the new regulations that prevented them from operating legally, the Yakuza was forced to transform its operations and go underground.

 

After the introduction of new regulations, the situation changed dramatically. Banks were required to include anti-Yakuza clauses in their contracts with clients, and individuals affiliated with the Yakuza could not open bank accounts, take out loans, or conduct any financial operations. Landlords had to add clauses to lease agreements prohibiting the rental of properties to people affiliated with the Yakuza, which significantly hindered gangsters' access to apartments and offices. Businesses were required to cease cooperation with the Yakuza, and any company that knowingly conducted business with members of criminal organizations could be fined or otherwise sanctioned.

 

Examples of specific regulations can be seen in Fukuoka, which was the first prefecture to introduce regulations prohibiting any cooperation with the Yakuza in 2010. Companies and institutions had to ensure that their contractors were not affiliated with criminal organizations. Similar regulations were adopted in Tokyo and Osaka in 2011, prohibiting cooperation with the Yakuza and introducing sanctions for violations. Every company had to submit statements confirming the absence of connections to organized crime.

 

These legislative changes forced the Yakuza to transform its operations, limiting its influence in legitimate sectors of the economy and pushing it further underground. The new regulations were an effective tool in the fight against organized crime, significantly hampering the Yakuza's ability to operate in Japan.

 

Article about the downfall of Yakuza in 21 century's Japan and how the Japanese government adjusted legal regulations so that yakuza is now weaker.

 

Consequences for Yakuza Members and Former Gangsters

 

 

Problems with Reintegrating Former Yakuza Members into Society

 

The introduction of strict anti-Yakuza regulations had serious consequences not only for active members of the organizations but also for those who decided to break away from their criminal past. Former gangsters who chose to leave their syndicates encountered numerous difficulties in attempting to reintegrate into society. This process proved to be exceptionally complicated and fraught with obstacles.

 

Many former Yakuza members struggled with the stigma associated with their past. Tattoos, which were symbols of their affiliation with the organization, and the missing fingers they lost as a form of punishment for transgressions, made it difficult for them to find employment and function normally in society. Many employers were reluctant to hire individuals with such signs of their past, fearing legal issues and damage to the company's reputation.

 

Examples of Individuals Who Tried to Break Away from Their Criminal Past

One such case is the story of Saigo, the protagonist of Jake Adelstein's book "The Last Yakuza." Saigo, a fictional character composed of several real former Yakuza members, found a job with a shady real estate agent after leaving the organization. His job was to sell and rent "jikobukken"—properties where murders or suicides had occurred. Although legal, this job was stigmatized and did not give Saigo a full chance for a fresh start.

 

Another example is an older gangster who, after years of activity in the Yakuza, decided to break away from crime. As Adelstein recounts, this man attempted to start a new life but encountered enormous difficulties related to lack of social acceptance and financial problems. Despite his efforts, he was unable to find steady employment, forcing him to work in the grey economy.

 

Legislation aimed against the Yakuza also played a role in preventing former gangsters from returning to normal life. These laws often included bans on renting apartments to individuals associated with the Yakuza, meaning former members had trouble finding places to live. Forced to hide their past, they often used false identities or intermediaries to bypass these bans.

 

One of the more dramatic cases was that of Toshiro Igari, an anti-Yakuza lawyer who played a key role in crafting legislation against these organizations. Igari, who died under mysterious circumstances in 2010, dedicated his life to fighting organized crime. His work and determination led to the introduction of numerous regulations that significantly hindered the Yakuza's operations and helped many individuals break away from their criminal past.

 

Despite these difficulties, some former Yakuza members managed to find a new path. With the support of non-profit organizations and rehabilitation programs, some found employment in legal sectors of the economy. However, these cases are the exception rather than the rule, and most former gangsters still struggle with reintegration issues.

 

Article about the downfall of Yakuza in 21 century's Japan and how the Japanese government adjusted legal regulations so that yakuza is now weaker.

 

The Changing Nature of the Yakuza in the 21st Century

 

 

Transition to Underground Activities and New Criminal Enterprises

 

The introduction of strict anti-Yakuza laws in Japan forced these organizations to significantly transform their operations. The traditional Yakuza, which had previously operated openly and visibly, had to go underground. The number of Yakuza members dropped drastically from about 80,000 in 2011 to around 24,000 in 2021. This significant reduction in membership was a direct result of the legislation and intensified police actions.

 

Before the introduction of new laws, the Yakuza was largely visible and openly present in Japanese society. Gangsters had official offices, business cards, and their presence was accepted, and sometimes even deemed necessary to maintain order in certain neighborhoods. These organizations engaged in various legal and semi-legal activities such as security, debt collection, and even organizing cultural events.

 

However, the new laws banning cooperation with the Yakuza and introducing anti-Yakuza clauses in contracts forced these organizations to change their strategies. The Yakuza began to operate in a more hidden and complex manner, avoiding direct confrontations with the law. As a result, many traditional methods of criminal activity were abandoned in favor of more modern and harder-to-detect methods.

 

 

Rise of Cybercrime and Financial Fraud

 

One of the most significant areas into which the Yakuza began to move was cybercrime and financial fraud. Faced with stricter laws and increased scrutiny, gangs began to use digital technologies to conduct their operations.

 

From 2000 to 2010, the Yakuza started investing in technologies and training that allowed their members to conduct sophisticated financial operations. These organizations began engaging in money laundering, stock market manipulation, and widespread hacking activities. According to data, in 2011, the revenue of Yamaguchi-gumi, the largest Yakuza syndicate, was about 80 billion yen (approximately 800 million dollars), with a significant portion coming from cybercrime and financial fraud.

 

An example is the stock market scandal where the Yakuza manipulated stock prices to achieve huge profits. Another example involves credit card fraud and identity theft, which became a new norm for the Yakuza. These organizations use advanced phishing and malware techniques to gain access to their victims' financial and personal data.

 

Cybercrime allows the Yakuza to operate on an international scale, making it harder for Japanese authorities to detect and prosecute. Additionally, collaboration with other international criminal organizations, such as Chinese triads or the Russian mafia, allows them to expand their activities even further.

 

It is also worth mentioning the growing role of financial fraud. The Yakuza began investing in various Ponzi schemes, financial pyramids, and other forms of investment fraud. These organizations often create fake investment companies that promise high returns to attract investors, then disappear with their money. This type of activity is difficult to detect and prosecute because these operations are often conducted through complex corporate structures and international bank accounts.

 

The changing nature of the Yakuza in the 21st century demonstrates how adaptive and flexible these organizations can be in the face of stricter regulations and intensified police actions. The transition to underground activities and the use of modern technologies allow them to continue their criminal operations, albeit in a different form. The rise of cybercrime and financial fraud represents a new and serious threat that not only Japanese authorities but also the international community must address.

 

Article about the downfall of Yakuza in 21 century's Japan and how the Japanese government adjusted legal regulations so that yakuza is now weaker.

 

Conclusion

 

The effectiveness of actions against the Yakuza in recent decades is undeniable. The introduction of strict laws prohibiting cooperation with members of these organizations, combined with intensive police actions, forced the Yakuza to go underground and significantly limited their visible operations. The number of Yakuza members has dropped drastically, and traditional methods of criminal activity have given way to more advanced techniques such as cybercrime and financial fraud. Interestingly, despite their criminal nature, the Yakuza still enjoy a certain degree of social acceptance. For example, during the Fukushima nuclear disaster in 2011, members of Yamaguchi-gumi were among the first to deliver humanitarian aid to the victims. This illustrates the complex relationship between the Yakuza and Japanese society.

 

The future of the Yakuza in Japan remains uncertain. On one hand, increasing regulations and growing social pressure may lead to further weakening of these organizations. On the other hand, the Yakuza's ability to adapt and transform their operations may enable them to find new ways to survive. Surprisingly, some Japanese companies use management guides based on Yakuza strategies, highlighting their effectiveness in organization and discipline. Possible scenarios include both further marginalization of the Yakuza and their transformation into less visible but still influential criminal structures. In any case, the fight against organized crime in Japan will require continuous adjustment of strategies and methods.

 

Article about the downfall of Yakuza in 21 century's Japan and how the Japanese government adjusted legal regulations so that yakuza is now weaker.

 

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 A connoisseur of Asian culture with a deep-seated appreciation for various philosophies of the world. By education, psychologist and Korean philologist. By heart, an Android developer and an ardent tech aficionado. In tranquil moments, he champions a disciplined way of life, firmly believing that steadfastness, perpetual self-enhancement, and a dedication to one's passions is a sensible path for life.

 

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