Inside the Yakuza: How Japan’s Most Infamous Crime Syndicate Operates
The Yakuza, Japan’s most notorious organized crime syndicate, has long been shrouded in mystery. Often romanticized in films and literature, these criminal organizations are known for their strict hierarchical structures, elaborate full-body tattoos, and influence over various sectors of Japanese society. But what does being a Yakuza member actually entail? How do they generate revenue, maintain order, and interact with both law enforcement and the public?
In a recent episode of How Crime Works by Insider, former Yakuza member Shinya Yuyama provided a rare and revealing look into the inner workings of the Yakuza, discussing their revenue streams, initiation process, global connections, and how their influence continues despite Japan’s crackdown on organized crime.
Origins and History of the Yakuza
The Yakuza can trace their origins back to the 17th century, during Japan’s Edo period. Originally, they were divided into two major groups: the bakuto (gamblers) and the tekiya (street merchants). Over time, these groups evolved into structured criminal organizations that controlled gambling, black-market trade, and other underground activities.
By the 20th century, the Yakuza had expanded their operations, deeply embedding themselves in politics, finance, and even Japan’s entertainment industry. At their peak in the 1960s, the Yakuza were estimated to have over 180,000 members across multiple families, or bōryokudan (violent groups), with some of the most well-known organizations being the Yamaguchi-gumi, Sumiyoshi-kai, and Inagawa-kai.
However, government regulations and social changes have significantly reduced their influence over the years. Despite this, the Yakuza continue to operate, albeit in a more discreet and strategic manner.
How the Yakuza Generate Revenue
Unlike traditional street gangs that rely mainly on drug trafficking, the Yakuza have a more diverse and sophisticated set of revenue streams. According to Yuyama, their income sources can be divided into both legal and illegal activities:
1. Protection Rackets
One of the Yakuza’s oldest and most lucrative practices is sokaiya—a form of corporate extortion. They offer “protection” to businesses and individuals in exchange for money. If a business refuses to cooperate, the Yakuza may resort to intimidation tactics, sabotage, or even public humiliation to pressure them into compliance.
2. Gambling and Underground Casinos
Gambling is illegal in Japan, except for government-sanctioned lotteries and betting on horse racing, cycling, and boat racing. However, the Yakuza operate underground casinos that cater to wealthy clients who seek high-stakes games. These establishments generate massive profits, often laundering money from other illegal ventures.
3. Real Estate and Construction
Over the years, the Yakuza have found ways to integrate themselves into Japan’s real estate and construction industries. Through intimidation and insider connections, they acquire land at low prices and sell it at inflated rates. Some Yakuza factions also infiltrate construction companies, securing lucrative contracts by exerting influence over unions and city officials.
4. Loan Sharking
The Yakuza operate illegal loan businesses that target desperate individuals and small businesses. Known as sarakin (loan sharks), they lend money at exorbitant interest rates, often using violence and threats to collect debts.
5. Fraud and Cybercrime
With advancements in technology, Yakuza operations have adapted to include cybercrime. Many organizations are involved in investment fraud, phishing scams, and even cryptocurrency-related crimes.
6. Drug and Human Trafficking
Although traditionally the Yakuza have distanced themselves from drug trafficking to maintain a code of “honor,” some factions engage in narcotics trade, especially methamphetamine distribution. Additionally, the Yakuza have been implicated in human trafficking, running illegal brothels and forcing women into prostitution.
7. Political and Business Ties
One of the Yakuza’s most complex revenue streams is their involvement in politics and business. Through front companies, they invest in the stock market, real estate, and other high-profile industries. Corrupt politicians and business executives sometimes use the Yakuza for illegal deals, money laundering, or intimidation tactics.
Initiation and Hierarchy: The Code of the Yakuza
Unlike street gangs that rely on loose affiliations, the Yakuza follow a strict hierarchical structure modeled after the samurai code, bushido. Loyalty and discipline are paramount, and members undergo elaborate initiation ceremonies to solidify their commitment.
Initiation Ritual: Becoming a Yakuza
New members must prove their loyalty through a formal induction ritual called sakazuki, where they drink sake with their oyabun (boss). This symbolic act binds them as a kobun (underling) in the family-like structure of the Yakuza.
Before initiation, prospective members often perform dangerous tasks or endure brutal tests of loyalty, including physical endurance trials or carrying out orders that could lead to legal consequences.
Hierarchy and Discipline
The Yakuza organization is structured similarly to a corporation:
- Oyabun (Boss): The leader of the organization, similar to a CEO.
- Wakagashira (Underboss): Second-in-command, responsible for overseeing operations.
- Shateigashira (Lieutenant): Commands lower-ranked members and enforces discipline.
- Shatei (Younger Brothers): Core members who carry out tasks, including extortion and enforcement.
- Kobun (Junior Members): Recruits who have yet to prove their loyalty.
One of the most well-known forms of punishment within the Yakuza is yubitsume, the act of cutting off one’s own finger to atone for mistakes or failures. This extreme form of self-mutilation serves as both punishment and a symbol of remorse.
Global Influence and Alliances
Although primarily based in Japan, the Yakuza maintain international ties with other organized crime syndicates, including:
- Chinese Triads: Cooperation in drug and human trafficking.
- Russian Mafia: Arms trade and money laundering.
- Italian Mafia: Sharing money-laundering schemes and black-market operations.
Yuyama noted that globalization has led the Yakuza to expand their operations beyond Japan, particularly in Southeast Asia and the United States, where they engage in illegal businesses such as cybercrime, drug trafficking, and investment fraud.
The Decline and Future of the Yakuza
The Japanese government has intensified its crackdown on the Yakuza, enacting strict anti-organized crime laws. In 1992, Japan introduced the Anti-Boryokudan Act, which criminalized Yakuza-related activities and made it easier for law enforcement to arrest and prosecute members.
Additionally, banks and corporations have started refusing services to known Yakuza members, effectively cutting off their access to financial systems. As a result, the number of active Yakuza members has dwindled significantly, from an estimated 80,000 in the early 1990s to fewer than 25,000 today.
Despite these challenges, Yuyama believes that the Yakuza will continue to exist, albeit in a more clandestine form. He suggests that the syndicates are shifting towards cybercrime, financial fraud, and white-collar crime, making them harder to detect and prosecute.
The Yakuza’s influence may have waned, but their legacy remains deeply embedded in Japanese society. From their historical roots to their current adaptations in the digital age, they continue to evolve, navigating the fine line between tradition and survival.
While law enforcement and government policies have significantly weakened their grip, the Yakuza’s adaptability ensures that organized crime in Japan will not disappear entirely—it will simply take on new, more elusive forms.
For a deeper dive into Shinya Yuyama’s revelations about life inside the Yakuza, watch the full Insider video here.
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