Act on Prevention of Transfer of Criminal Proceeds

The purpose of this Act is, in view of the fact that criminal proceeds are used to encourage organized crimes and, by being transferred and used in business activities, have a grave adverse effect on sound economic activities, and of the fact that the transfer of criminal proceeds makes it difficult to deprive offenders of them by confiscation, collection of equivalent value and other procedures, or to apply them to the recovery of damage caused by crimes, so that preventing the transfer of criminal proceeds (hereinafter referred to as "prevention of transfer of criminal proceeds") is extremely important, to achieve prevention of transfer of criminal proceeds by having specified business operators take measures such as verification of the identification data, etc. of customers, etc. (meaning the identification data prescribed in Article 4, paragraph (1), item (i); the same applies in Article 3, paragraph (1)), preservation of transaction records, etc., and notification of suspicious transactions, and by having police officers take measures to prevent deposit accounts, etc. from being used for crimes, in conjunction with the measures under the Act on Punishment of Organized Crimes and Control of Proceeds of Crime (Act No. 136 of 1999; hereinafter referred to as the "Organized Crime Punishment Act") and the Act Concerning Special Provisions for the Narcotics and Psychotropics Control Act, etc. and Other Matters for the Prevention of Activities Encouraging Illicit Conducts and Other Activities Involving Controlled Substances through International Cooperation (Act No. 94 of 1991; hereinafter referred to as the "Narcotics Special Provisions Act"), and also to ensure the precise implementation of international conventions and other instruments concerning the prevention of the financing of terrorism, thereby ensuring the safety and peace of national life and contributing to the sound development of economic activities.

When an administrative agency (limited to a prefectural governor or a Prefectural Public Safety Commission (hereinafter referred to as a "Public Safety Commission")) has received a suspicious transaction report, it is to promptly notify the competent minister of the matters pertaining to that suspicious transaction report.

When an administrative agency (excluding a prefectural governor and a Prefectural Public Safety Commission) or the competent minister prescribed in the preceding paragraph (excluding the National Public Safety Commission) has received a suspicious transaction report or a notification under that paragraph, it is to promptly notify the National Public Safety Commission of the matters pertaining to that suspicious transaction report or notification.

A specified business operator (limited to a specified business operator listed in Article 2, paragraph (2), item (xxxi)-2 and a specified business operator listed in items (i) through (xv) , item (xxv) and item (xxxi) of that paragraph that is deemed to be an electronic payment instruments service provider prescribed in Article 2, paragraph (12) of the Payment Services Act pursuant to Article 62-8, paragraph (2) of that Act; hereinafter referred to as an "electronic payment instruments service provider" in the following Article and Article 22, paragraph (2), item (ii)) ) must, when concluding with a foreign-based electronic payment instruments service provider (meaning a person that is located in a foreign country and engages in business of the same type as electronic payment instrument-related business (meaning electronic payment instrument-related business prescribed in Article 2, paragraph (11) of that Act); the same applies hereinafter in this Article) a contract the content of which is to carry out transfers of electronic payment instruments (meaning electronic payment instruments prescribed in Article 2, paragraph (5) of that Act, excluding specified trust beneficiary rights prescribed in paragraph (9) of that Article (limited to those pertaining to a beneficiary certificate issuing trust prescribed in Article 185, paragraph (3) of the Trust Act (Act No. 108 of 2006) and not falling under bearer beneficiary rights prescribed in Article 110, paragraph (3) of that Act); the same applies hereinafter) (excluding those accompanying the exchange, etc. of electronic payment instruments prescribed in Article 2, paragraph (10) of that Articlethe Payment Services Act; the same applies hereinafter) on an ongoing basis or repeatedly, verify the following matters concerning that foreign-based electronic payment instruments service provider by the method specified by order of the competent ministry.

When the National Public Safety Commission finds that a specified business operator is in violation, in relation to its business, of the provisions prescribed in the preceding Article, it may state its opinion to an administrative agency (excluding a Prefectural Public Safety Commission; the same applies hereinafter in this Article) to the effect that the agency should issue the order under the provisions of the preceding Article to that specified business operator or, in the case where a disposition such as suspension of business may be imposed on the ground of that violation under the provisions of other laws and regulations, that the agency should impose that disposition on that specified business operator.

The Superintendent General of the Metropolitan Police Department or the head of a Do, Fu or prefectural police headquarters (hereinafter referred to as the "Chief of Prefectural Police Headquarters") of the prefectural police that has received the instruction under the preceding paragraph may, when found to be particularly necessary for conducting the investigation under that paragraph, with the prior approval of the National Public Safety Commission, have its officials enter the business offices or other facilities of a specified business operator, inspect books and documents and other articles, or question persons concerned about its business. In this case, the provisions of Article 16, paragraphs (2) through (4) apply mutatis mutandis.

Chapter IV-2 Measures to Prevent Criminal Use of Accounts, etc.

Section 1 Implementation of Measures to Prevent Criminal Use of Accounts, etc.

In order to implement the measure under the provisions of the following Article (hereinafter referred to as a "measure to prevent criminal use of accounts, etc."), a police officer, under the direction of the Chief of Prefectural Police Headquarters of the prefectural police to which the police officer belongs, may present to the specified business operators listed in the following items a certificate proving the police officer's status and a document specified by National Public Safety Commission Rules (including a measure using an electronic data processing system or another method utilizing information and communications technology that is specified by National Public Safety Commission Rules as equivalent to such presentation), and request them to open or establish an account, etc. for measures to prevent criminal use (meaning an account or equivalent thereof (hereinafter referred to as an "account, etc.") that is opened or established under the contract prescribed in each of the following items between the Chief of Prefectural Police Headquarters and the specified business operator listed in that item in order to receive the provision of services pertaining to that contract, and with respect to which, as to the account holder and other matters of the account, etc. displayed or recorded on a passbook, card or other item pertaining to the account, etc., measures are taken so that the counterparty to the measure to prevent criminal use of accounts, etc. and other persons cannot infer that the account, etc. is used for the measure to prevent criminal use of accounts, etc.; the same applies hereinafter).

a specified business operator listed in Article 2, paragraph (2), items (i) through (xv) and (xxxvii) (referred to as a "deposit-taking business operator" in Article 26, paragraph (1) and Article 32, paragraph (4), item (i)): a deposit contract prescribed in the right-hand column of the row for persons listed in Article 2, paragraph (2), items (i) through (xxxviii) in the Appended Table (referred to simply as a "deposit contract" in Article 26, paragraph (1));

a specified business operator listed in Article 2, paragraph (2), item (xxx)-2 (hereinafter referred to in this item and Article 27, paragraph (1) as an "issuer of high-value electronically transferable prepaid payment instruments"): a contract under which the issuer of high-value electronically transferable prepaid payment instruments allows a customer to use high-value electronically transferable prepaid payment instruments prescribed in Article 3, paragraph (8) of the Payment Services Act (referred to as a "contract for use of high-value electronically transferable prepaid payment instruments" in Article 27, paragraph (1));

a specified business operator listed in Article 2, paragraph (2), item (xxxi) (hereinafter referred to in this item and Article 28, paragraph (1) as a "funds transfer service provider"): a contract for receiving the provision of services relating to the remittance or receipt thereof by funds transfer transaction with the funds transfer service provider;

an electronic payment instruments service provider: a contract for performing the acts listed in the items of Article 2, paragraph (10) of the Payment Services Act (referred to as an "electronic payment instruments transaction contract" in Article 29, paragraph (1));

a specified business operator listed in Article 2, paragraph (2), items (xxxi)-3 through (xxxi)-5 (referred to as an "electronic payment handling service provider, etc." in Article 30, paragraph (1)): a contract for performing the acts listed in the items of Article 2, paragraph (17) of the Banking Act, the items of Article 85-3, paragraph (2) of the Shinkin Bank Act, or the items of Article 6-4-3, paragraph (2) of the Act on Financial Businesses by Cooperative (referred to as an "electronic payment services use contract" in Article 30, paragraph (1));

a cryptoasset exchange service provider: a contract for performing the acts listed in the items of Article 2, paragraph (15) of the Payment Services Act (referred to as a "cryptoasset exchange contract" in Article 31, paragraph (1)).

Where a police officer finds a person listed in the following items and finds it necessary to prevent deposit accounts, etc. (meaning accounts, etc. opened or established in order to receive the provision of services pertaining to the contract specified in each item of the preceding Article with the specified business operator listed in that item (hereinafter referred to in this Article and Article 32, paragraph (4) as "deposit contract services, etc."); the same applies hereinafter in this Article and Article 19-11, item (iii)) from being used for crimes, the police officer, under the direction of the Chief of Prefectural Police Headquarters of the prefectural police to which the police officer belongs, may take, with respect to that person, measures using accounts, etc. for measures to prevent criminal use or passbooks, etc. for measures to prevent criminal use in order to prevent the deposit accounts, etc. from being used for crimes, such as transferring, delivering or providing passbooks, cards, information necessary for receiving deposit contract services, etc., and other things necessary for receiving those deposit contract services, etc. pertaining to accounts, etc. for measures to prevent criminal use (hereinafter referred to as "passbooks, etc. for measures to prevent criminal use"), or accepting the entrustment of carrying out a property transfer using specified services prescribed in that paragraph (referred to simply as a "property transfer using specified services" in item (ii) and Article 19-6, paragraph (4), item (ii)) and providing information necessary for receiving property in accounts, etc. for measures to prevent criminal use (hereinafter referred to in this Article as "account-related information"). In this case, the police officer may, to the extent found necessary for properly implementing the measure, conceal or misrepresent the police officer's name, status and other matters, the fact that the passbooks, etc. for measures to prevent criminal use or the account-related information pertain to accounts, etc. for measures to prevent criminal use, and other facts pertaining to the measure.

a person who solicits persons, or induces persons by advertisement or a similar method, to transfer, deliver or provide deposit passbooks, etc. prescribed in Article 26, paragraph (1), information for use of high-value electronically transferable prepaid payment instruments prescribed in Article 27, paragraph (1), exchange transaction cards, etc. prescribed in Article 28, paragraph (1), information for electronic payment instruments transactions prescribed in Article 29, paragraph (1), information for use of electronic payment services prescribed in Article 30, paragraph (1), or information for cryptoasset exchange prescribed in Article 31, paragraph (1) (excluding a person found to have a justifiable reason, such as that it is carried out as an ordinary commercial transaction or financial transaction);

a person who requests another person to carry out a property transfer using specified services for consideration, or induces persons by advertisement or a similar method to do so (excluding a person found to have the justifiable reason prescribed in the preceding item).

Where a police officer has taken a measure to prevent criminal use of accounts, etc. and finds it necessary, the police officer may request the specified business operators listed in the items of Article 19-2 for the provision of information on transactions pertaining to accounts, etc. for measures to prevent criminal use and other necessary cooperation.

Where a measure to prevent criminal use of accounts, etc. has been taken and a transfer of property listed in the following items has occurred, the Chief of Prefectural Police Headquarters who directs that measure to prevent criminal use of accounts, etc. must keep in custody the property specified in the relevant item in order to make the return under the provisions of paragraph (1) of the following Article.

a transfer of property to an account, etc. for measures to prevent criminal use: the property pertaining to that transfer;

a transfer of property (money or other property) to a police officer, other than that set out in the preceding item, by receiving consideration for the transfer, delivery or provision of passbooks, etc. for measures to prevent criminal use or for other reasons: the property pertaining to that transfer.

Where there is a risk that the property kept in custody under the provisions of the preceding paragraph will be lost or damaged, or where its custody or return requires excessive expense or effort, the Chief of Prefectural Police Headquarters may liquidate that property and keep in custody the money obtained by that liquidation.

The Chief of Prefectural Police Headquarters who has kept property in custody under the provisions of the preceding Article is to promptly return the property pertaining to that custody (or, where that property is a monetary claim, money equivalent to the value of that monetary claim) to the person who carried out the transfer of property listed in the items of paragraph (1) of that Article that gave rise to that custody (hereinafter referred to as an "act giving rise to custody"). However, where any of the circumstances listed in the following items exists, the property is to be returned promptly after that circumstance has ceased.

There is a risk of hindering the enforcement of the provisions of this Section or the investigation of a crime.

Where the act giving rise to custody is a transfer of property listed in paragraph (1), item (i) of the preceding Article, an action seeking withdrawal of the property pertaining to the account, etc. for measures to prevent criminal use pertaining to that act giving rise to custody has been filed, or procedures for compulsory execution, provisional seizure or provisional disposition are being carried out with respect to a claim pertaining to that property.

Circumstances specified by National Public Safety Commission Rules, in addition to those listed in the preceding two items.

The value or quantity of the property to be returned under the provisions of the preceding paragraph (hereinafter referred to in this paragraph and paragraph (4) as "value, etc.") is, where the custody of that property under the provisions of the preceding Article was carried out in an account, etc. for measures to prevent criminal use, to be the value, etc. at the time that custody started.

The expenses required for the return under the provisions of paragraph (1) are to be borne by the person receiving that return.

In any of the cases listed in the following items, the Chief of Prefectural Police Headquarters may, notwithstanding the provisions of paragraph (2), deduct from the value, etc. of the property to be delivered to the counterparty to the return under the provisions of paragraph (1) the value, etc. of property equivalent to the property pertaining to the transfer prescribed in the relevant item.

Where, before or after the act giving rise to custody, there has been a transfer of property from the account, etc. for measures to prevent criminal use pertaining to that act giving rise to custody, and the counterparty to that return is found to have carried out that transfer.

Where, before or after the act giving rise to custody, a police officer, at the request of another person, carried out a property transfer using specified services from the account, etc. for measures to prevent criminal use pertaining to that act giving rise to custody and thereby made a transfer of property, and the counterparty to that return is found to have made that request.

No interest is to be added to the property returned under the provisions of paragraph (1).

The Chief of Prefectural Police Headquarters is to conduct the necessary investigation in order to make the return under the provisions of paragraph (1) of the preceding Article.

Where the Chief of Prefectural Police Headquarters finds it necessary for the investigation under the provisions of the preceding paragraph, the Chief may make inquiries to public offices or public or private organizations and request reports of necessary matters.

Where, as a result of the investigation under the provisions of paragraph (1) or for other reasons, the Chief of Prefectural Police Headquarters has identified a person who is to receive return under the provisions of paragraph (1) of the preceding Article, the Chief must notify that person of the procedures necessary to receive that return promptly (or, where any of the circumstances listed in the items of that paragraph exists, promptly after that circumstance has ceased).

Where, with respect to the property kept in custody under the provisions of Article 19-5 (including, where a transfer prescribed in the items of Article 19-6, paragraph (4) has occurred, the property pertaining to that transfer; hereinafter referred to as "property in custody"), the Chief of Prefectural Police Headquarters is still unable to identify the person who is to receive its return, or to ascertain that person's whereabouts, even after conducting the investigation under the provisions of paragraph (1) of the preceding Article, the Chief must request the Commissioner General of the National Police Agency to give the public notice under the provisions of the following paragraph.

Upon the request under the preceding paragraph, the Commissioner General of the National Police Agency must promptly give public notice of the following matters:

the name of the prefectural police in which that Chief of Prefectural Police Headquarters is established;

the date and time of the act giving rise to custody of that property in custody;

the name of the specified business operator pertaining to the account, etc. for measures to prevent criminal use pertaining to the act giving rise to custody of that property in custody, the number or other code of the account, etc., the full name or name of the account holder, and other matters pertaining to that act giving rise to custody (excluding the matters listed in the preceding item);

the particulars of that property in custody;

in addition to what is listed in the preceding items, matters specified by National Public Safety Commission Rules.

When making the return under the provisions of Article 19-6, paragraph (1), the Chief of Prefectural Police Headquarters must, as specified by National Public Safety Commission Rules, verify that the person is the person who is to receive that return, and make the return in exchange for a receipt.

Where the Chief of Prefectural Police Headquarters finds it necessary for the return under the provisions of Article 19-6, paragraph (1), the Chief may request the person seeking to receive that return to make a report or submit materials, or have a police officer question that person.

The authority under the provisions of the preceding paragraph must not be construed as having been granted for the purpose of criminal investigation.

If, even after six months (excluding the period during which any of the circumstances listed in the items of Article 19-6, paragraph (1) existed) have elapsed from the date of the public notice under the provisions of Article 19-8, paragraph (2), it is still not possible to identify the person who is to receive the return of the property in custody under the provisions of Article 19-6, paragraph (1) or to ascertain that person's whereabouts, or if the person who is to receive that return has waived the right to receive the return of the property in custody (hereinafter referred to as the "right to claim return"), the right to claim return with respect to that property in custody is extinguished. In this case, where that property in custody is property other than money, the Chief of Prefectural Police Headquarters must promptly liquidate it.

Section 2 Payment of Specified Compensation for Criminal Damage

Subsection 1 General Provisions

In this Section, the meanings of the terms listed in the following items are as prescribed respectively in those items.

"specified compensation for criminal damage" means money paid from compensatory funds, the amount of which is calculated pursuant to the provisions of the following Subsection and Subsection 3 on the basis of the value of the property lost through a criminal act warranting compensation;

"compensatory funds" means money kept in custody by the Public Safety Commission under the provisions of Article 19-14, paragraph (4) or Article 19-20, paragraph (3).

"criminal act warranting compensation" means a criminal act constituting fraud or another crime that harms a person's property, which has harmed that property by causing a person to make a transfer of property to a source deposit account, etc. (meaning, where a transfer of property listed in Article 19-5, paragraph (1), item (i) has been made with a deposit account, etc. as its source, that deposit account, etc. serving as the source; the same applies in Article 19-14 and Article 19-15, paragraph (2), item (iii));

"expenses" means expenses required for the notification under the provisions of this Section and other expenses specified by National Public Safety Commission Rules as to be defrayed from compensatory funds.

The Public Safety Commission is to pay specified compensation for criminal damage, as provided for in this Section, to a person who has suffered harm through a criminal act warranting compensation (including an organization that is not a corporation and for which a representative or manager has been designated) and has thereby lost property.

Where there has been succession by inheritance or other general succession with respect to a person prescribed in the preceding paragraph (hereinafter referred to as an "eligible victim"), the Public Safety Commission is to pay specified compensation for criminal damage, as provided for in this Section, to the heir or other general successor.

Notwithstanding the provisions of the preceding Article, a person falling under any of the following items cannot receive payment of specified compensation for criminal damage:

the eligible victim who lost property through a criminal act warranting compensation or that person's general successor, in the case where the entire loss equivalent to the value of the property lost through that criminal act warranting compensation (or, where that property belongs to two or more persons in co-ownership, the person's share; the same applies hereinafter in this Article) has been made good or compensated (limited to the case where that making good or compensation was made by a person other than the eligible victim who lost that property through that criminal act warranting compensation or that person's general successor);

a person who committed a criminal act warranting compensation or participated in it as an accomplice, a person who gained an unlawful profit in connection with a criminal act warranting compensation, a person who has an unlawful cause of their own for having lost property through a criminal act warranting compensation, or any other person for whom receiving payment of specified compensation for criminal damage is inappropriate under socially accepted conventions, or, where an eligible victim falls under any of these persons, the general successor of that eligible victim.

Subsection 2 Procedures to Pay Specified Compensation for Criminal Damage

Where the right to claim return has been extinguished under the provisions of Article 19-10 with respect to property in custody for which the act giving rise to custody is a transfer of property listed in Article 19-5, paragraph (1), item (i) (where liquidation under the provisions of Article 19-10 is to be carried out for that property in custody, limited to the case where that liquidation has been completed; the same applies in paragraph (5)), and there is a source deposit account, etc. for that transfer of property, the Chief of Prefectural Police Headquarters must request the Public Safety Commission that administers that prefectural police to commence procedures to pay specified compensation for criminal damage from the compensatory funds pertaining to that property in custody (hereinafter referred to as "procedures to pay specified compensation for criminal damage"). However, this does not apply where the value of that property in custody (or, where that property in custody has been liquidated under the provisions of Article 19-10, the money obtained by that liquidation; the same applies in paragraph (4) and Article 19-24, paragraph (1)) does not exceed the amount specified by National Public Safety Commission Rules as the amount of expenses expected to be required for the procedures to pay specified compensation for criminal damage.

Upon the request under the preceding paragraph, the Public Safety Commission is to, without delay, make a decision to commence procedures to pay specified compensation for criminal damage.

The decision under the preceding paragraph is to be made for each account, etc. for measures to prevent criminal use pertaining to a transfer of property listed in Article 19-5, paragraph (1), item (i).

When the Public Safety Commission has made a decision to commence procedures to pay specified compensation for criminal damage under the provisions of paragraph (2), it is to keep the property in custody pertaining to that decision in custody as compensatory funds.

Where the right to claim return has been extinguished under the provisions of Article 19-10 with respect to property in custody for which the act giving rise to custody is a transfer of property listed in Article 19-5, paragraph (1), item (i), and there is no source deposit account, etc. for that transfer of property, or the case falls under the case prescribed in the proviso to paragraph (1), the Chief of Prefectural Police Headquarters must request the Commissioner General of the National Police Agency to give the public notice under the provisions of the following paragraph.

Upon the request under the preceding paragraph, the Commissioner General of the National Police Agency must promptly give public notice that procedures to pay specified compensation for criminal damage will not be carried out for the property in custody for which that right to claim return has been extinguished.

When the Public Safety Commission has made a decision to commence procedures to pay specified compensation for criminal damage under the provisions of paragraph (2) of the preceding Article, it must promptly request the Commissioner General of the National Police Agency to give the public notice under the provisions of the following paragraph.

Upon the request under the preceding paragraph, the Commissioner General of the National Police Agency must promptly give public notice of the following matters:

the fact that procedures to pay specified compensation for criminal damage have been commenced;

the name of the Public Safety Commission that carries out the procedures to pay specified compensation for criminal damage;

the name of the specified business operator pertaining to the account, etc. for measures to prevent criminal use and the source deposit account, etc. pertaining to that decision, the number or other code of the account, etc., and the full name or name of the account holder;

the amount of the compensatory funds pertaining to that decision;

the application period for payment;

in addition to what is listed in the preceding items, matters specified by National Public Safety Commission Rules.

The application period for payment under item (v) of the preceding paragraph must be 30 days or more counting from the day following the day of the public notice under the provisions of that paragraph.

The Public Safety Commission must notify the eligible victims or their general successors who are known of the matters to be publicly notified under the provisions of paragraph (2). However, this does not apply to a person who is clearly a person who cannot receive payment of specified compensation for criminal damage.

In addition to what is provided for in the preceding paragraphs, necessary matters concerning the public notice under the provisions of paragraph (2) and the notification under the provisions of the preceding paragraph are specified by National Public Safety Commission Rules.

In the case where any of the following items applies, the Public Safety Commission is to make a decision to terminate the procedures to pay specified compensation for criminal damage:

when there is no application under Article 9, paragraph (1) of the Act on the Payment of Compensation for Criminal Damage Using Stolen and Misappropriated Property as applied mutatis mutandis in the preceding Article (hereinafter referred to as the "Applied Payment Act");

when, with respect to all applications under Article 9, paragraph (1) or (2) of the Applied Payment Act, a ruling under Article 10 or Article 11 of the Applied Payment Act has been made, and there is no person who has received a ruling under Article 10, paragraph (1) of the Applied Payment Act to the effect that the person is a person who may receive payment of specified compensation for criminal damage (hereinafter referred to as a "ruling of eligibility"); or

when all of the specified compensation for criminal damage to be paid under the provisions of Article 14, paragraphs (1) and (2) and Article 17 of the Applied Payment Act (including the case where these provisions are to be followed pursuant to Article 19-21, paragraph (2)) has been paid under those provisions.

When the Public Safety Commission has made a decision to terminate the procedures to pay specified compensation for criminal damage pursuant to the preceding paragraph, it must request the Commissioner General of the National Police Agency to give the public notice under the following paragraph.

Upon the request under the preceding paragraph, the Commissioner General of the National Police Agency must promptly give public notice that the procedures to pay specified compensation for criminal damage have been terminated.

Subsection 3 Miscellaneous Provisions

Where the Public Safety Commission finds it necessary for conducting the affairs under the provisions of this Section, it may order a person who has made an application under Article 9, paragraph (1) or (2) of the Applied Payment Act (referred to as an "applicant for specified compensation for criminal damage" in Article 35, item (iv)) or any other person concerned to make a report, submit documents or other articles, or appear, or may make inquiries to public offices or public or private organizations and request reports of necessary matters.

When specified compensation for criminal damage has been paid, the claim for damages and any other claim that the person who received the payment holds in relation to the criminal act warranting compensation is extinguished to the extent of the amount received.

If, in the procedures to pay specified compensation for criminal damage, there is a person who has received payment of specified compensation for criminal damage by deceit or other wrongful means, the Public Safety Commission may collect from that person all or part of an amount equivalent to the amount of the specified compensation for criminal damage received, following the example of dispositions for delinquency in local taxes.

The priority of the statutory lien on money collected under the provisions of the preceding paragraph is to rank next after national taxes and local taxes.

When the Public Safety Commission has made a collection under the provisions of paragraph (1), it is to keep the money pertaining to that collection in custody as compensatory funds.

Where the Public Safety Commission has kept money in custody under the provisions of the preceding paragraph, and in the procedures to pay specified compensation for criminal damage there is a person, other than the person prescribed in paragraph (1), who has received a ruling of eligibility (excluding a person whose right to receive payment of specified compensation for criminal damage has been extinguished; hereinafter in this paragraph referred to as "another person who has received a ruling of eligibility"), and the amount of specified compensation for criminal damage already paid to that other person who has received a ruling of eligibility is less than the amount of criminal damage (meaning the amount of criminal damage prescribed in Article 10, paragraph (2) of the Applied Payment Act as determined in the ruling of eligibility; the same applies in paragraph (2) of the following Article), it must, without delay, pay specified compensation for criminal damage to that other person who has received a ruling of eligibility or that person's general successor, using the compensatory funds pertaining to that custody as the source, in accordance with the provisions of Article 14, paragraphs (1) through (3) and Article 17 of the Applied Payment Act. However, this does not apply if the amount collected from the person prescribed in paragraph (1) is less than 1,000 yen.

The right to receive payment of specified compensation for criminal damage is extinguished if it is not exercised for six months from the time of the public notice under Article 14, paragraph (3) of the Applied Payment Act (including the case where it is to be followed pursuant to paragraph (4) of the preceding Article and the following paragraph).

Where the right to receive payment of specified compensation for criminal damage has been extinguished under the provisions of the preceding paragraph, and in the procedures to pay specified compensation for criminal damage there is a person, other than the person who held that right, who has received a ruling of eligibility (excluding a person whose right to receive payment of specified compensation for criminal damage has been extinguished; hereinafter in this paragraph referred to as "another person who has received a ruling of eligibility"), and the amount of specified compensation for criminal damage already paid to that other person who has received a ruling of eligibility is less than the amount of criminal damage, the Public Safety Commission must, without delay, pay specified compensation for criminal damage to that other person who has received a ruling of eligibility or that person's general successor, using as the source an amount of money equivalent to the amount of specified compensation for criminal damage pertaining to the right extinguished under that paragraph, in accordance with the provisions of Article 14, paragraphs (1) through (3) and Article 17 of the Applied Payment Act. However, this does not apply if the amount of specified compensation for criminal damage pertaining to the right extinguished under the provisions of the preceding paragraph is less than 1,000 yen.

The right to receive payment of specified compensation for criminal damage may not be assigned, offered as security, or seized. However, this does not apply to seizure by a disposition for delinquency in national taxes (including a disposition that follows the example thereof).

The mayor of a municipality (which includes the mayor of a special ward, and, in a designated city under Article 252-19, paragraph (1) of the Local Autonomy Act (Act No. 67 of 1947), is the ward mayor or the comprehensive ward mayor) may, to the Public Safety Commission or a person seeking to receive payment of specified compensation for criminal damage, in accordance with the Municipal Ordinance of the municipality (including a special ward) concerned, provide free certification concerning the family register of an eligible victim or that person's general successor, or of the general successor of a person whose ruling of eligibility has become final.

In any of the cases listed in the following items, the Chief of Prefectural Police Headquarters is to transfer the property specified in the relevant item into the revenue of the general account of the prefecture to which the prefectural police concerned belong:

when the right to claim return has been extinguished under the provisions of Article 19-10 with respect to property in custody for which the act giving rise to custody is a transfer of property listed in Article 19-5, paragraph (1), item (ii): the property in custody;

when public notice has been given under the provisions of Article 19-14, paragraph (6): the property in custody pertaining to the public notice.

In any of the cases listed in the following items, the Public Safety Commission is to transfer the money specified in the relevant item into the revenue of the general account of the prefecture in which that Public Safety Commission is established:

when the decision under Article 19-17, paragraph (1) has become final and compensatory funds are in custody at the time of that finalization: those compensatory funds (where custody under Article 19-20, paragraph (3) was carried out before that finalization, excluding money equivalent to the amount so kept in custody (or, where specified compensation for criminal damage has been paid under paragraph (4) of that Article using the compensatory funds pertaining to that custody as the source, the amount remaining after deducting the amount so paid));

when custody has been carried out under Article 19-20, paragraph (3) and there is no person to receive payment of specified compensation for criminal damage under paragraph (4) of that Article: the compensatory funds so kept in custody;

when, with respect to compensatory funds kept in custody under Article 19-20, paragraph (3), all of the specified compensation for criminal damage to be paid under paragraph (4) of that Article and Article 19-21, paragraph (2) has been paid, and compensatory funds are still in custody: those compensatory funds.

A prefecture is to endeavor to appropriate an amount equivalent to the amount of money transferred into the revenue of the general account of that prefecture under the preceding two paragraphs as a source of funds for the expenses necessary for implementing measures for crime victims, etc. prescribed in Article 2, paragraph (3) of the Basic Act on Crime Victims (Act No. 161 of 2004).

A person who is dissatisfied with a ruling, decision or other act listed in the following items (hereinafter referred to in this paragraph and the following Article as a "ruling, etc.") may file a request for examination with the Public Safety Commission that made the ruling, etc. within 30 days from the day specified respectively in those items:

a ruling under the provisions of Article 10 or Article 11 of the Applied Payment Act: the day following the day on which a certified copy of the written ruling is served;

the decision under Article 19-17, paragraph (1): the day following the day of the public notice of that decision;

beyond what is set forth in the preceding two items, an act of the Public Safety Commission relating to procedures under the provisions of this Section that is specified by National Public Safety Commission Rules: the day specified by National Public Safety Commission Rules.

Notwithstanding the provisions of the preceding paragraph, a request for examination may be filed even after the expiration of that period if there is a justifiable reason.

Where a person who has filed an application for a ruling, etc. with the Public Safety Commission under the provisions of this Section or National Public Safety Commission Rules based on the provisions of this Section finds that, although a reasonable period of time has passed since the application, there is inaction on the part of that Public Safety Commission (meaning that the Public Safety Commission makes no ruling, etc. whatsoever in response to an application under the provisions of this Section or National Public Safety Commission Rules based on the provisions of this Section; the same applies hereinafter in this Article), the person may file a request for examination with that Public Safety Commission regarding that inaction.

Section 3 Miscellaneous Provisions

The provisions of Article 4, paragraphs (1) and (2) as applied with replacement of terms pursuant to paragraph (5) of that Article, Article 7, paragraph (1) and Article 8, paragraph (1) do not apply to transactions pertaining to accounts, etc. for measures to prevent criminal use conducted by the specified business operators listed in the items of Article 19-2.

The provisions of Article 26, paragraphs (1) and (2), Article 27, paragraphs (1) and (2), Article 28, paragraphs (1) and (2), Article 29, paragraphs (1) and (2), Article 30, paragraphs (1) and (2), Article 31, paragraphs (1) and (2), and the first sentence of Article 32, paragraph (2) do not apply to acts that a police officer carries out for a measure to prevent criminal use of accounts, etc. or for preparation therefor.

The provisions of Article 26, paragraph (2), Article 27, paragraph (2), Article 28, paragraph (2), Article 29, paragraph (2), Article 30, paragraph (2) and Article 31, paragraph (2) do not apply to an act of a specified business operator listed in the items of Article 19-2 that has carried out the opening or establishment of an account, etc. for measures to prevent criminal use that was opened or established in response to a request under the provisions of that Article, of delivering or providing the passbooks, etc. for measures to prevent criminal use pertaining to that account, etc. to a police officer.

The provisions of Chapters II through IV of the Act on Payment of Damage Recovery Benefits from Funds in Deposit Accounts Used for Crime (Act No. 133 of 2007) do not apply to accounts, etc. for measures to prevent criminal use.

In addition to what is provided for in this Chapter, matters necessary for implementing the provisions of this Chapter are specified by National Public Safety Commission Rules.

Notwithstanding the provisions of paragraph (1), where a person that has obtained the permission under Article 3 of the Secondhand Goods Business Act (Act No. 108 of 1949) (limited to that pertaining to Article 2, paragraph (2), item (i) of that Act), out of the specified business operators listed in Article 2, paragraph (2), item (xliii), conducts the business of buying and selling precious metals, etc. that are secondhand goods prescribed in Article 2, paragraph (1) of that Act, and where a person that has obtained the permission under Article 2, paragraph (1) of the Pawnbroker Business Act (Act No. 158 of 1950), out of the specified business operators listed in Article 2, paragraph (2), item (xliii), conducts the business of selling precious metals, etc. that are forfeited pledged articles prescribed in Article 18, paragraph (1) of that Act, the administrative agency concerning matters pertaining to those businesses is the Prefectural Public Safety Commission. In this case, the affairs falling under the authority of the Hokkaido Prefectural Public Safety Commission may be made to be performed by a Regional Public Safety Commission, as provided by Cabinet Order.

Part of the affairs falling under the authority of an administrative agency prescribed in this Act (excluding affairs that are provided in the provisions of this Act to fall under the authority of a prefectural governor or a Prefectural Public Safety Commission) may be made to be performed by a prefectural governor, as provided by Cabinet Order.

Out of the affairs that are to be processed by prefectures pursuant to the provisions of this Act, those pertaining to the following persons are Type 1 statutory entrusted affairs prescribed in Article 2, paragraph (9), item (i) of the Local Autonomy Act (Act No. 67 of 1947).

A person who, impersonating another person, for the purpose of receiving, or having a third party receive, the provision of services pertaining to a deposit contract (meaning a deposit contract prescribed in the right-hand column of the row for the persons listed in Article 2, paragraph (2), items (i) through (xxxviii) in the Appended Table; hereinafter the same applies in this paragraph and Article 32, paragraph (4), item (i), (a)) with a specified business operator (limited to a specified business operator listed in Article 2, paragraph (2), items (i) through (xv) and item (xxxvii); referred to as a "deposit-taking business operator" in Article 32, paragraph (4), item (i)), takes over, receives delivery of or is provided with a deposit passbook, a card for withdrawing deposits, information necessary for withdrawing or transferring deposits, or any other thing specified by Cabinet Order as necessary for receiving the provision of those services, pertaining to that deposit contract (hereinafter referred to in this Article as "deposit passbook, etc."), is punished by imprisonment for not more than three years or a fine of not more than 5,000,000 yen, or both. The same applies to a person who, without a legitimate reason such as that it is carried out as an ordinary commercial transaction or financial transaction, takes over, receives delivery of or is provided with a deposit passbook, etc. for consideration.

A person who, impersonating another person, for the purpose of receiving, or having a third party receive, the provision of services pertaining to a contract for use of high-value electronically transferable prepaid payment instruments (meaning a contract under which an issuer of high-value electronically transferable prepaid payment instruments allows a customer to use high-value electronically transferable prepaid payment instruments prescribed in Article 3, paragraph (8) of the Payment Services Act; hereinafter the same applies in this paragraph and Article 32, paragraph (4), item (i), (b)) with a specified business operator listed in Article 2, paragraph (2), item (xxx)-2 (hereinafter in this paragraph and Article 32, paragraph (4), item (i), (b) referred to as an "issuer of high-value electronically transferable prepaid payment instruments"), is provided with a code attached so as to enable the issuer of high-value electronically transferable prepaid payment instruments to distinguish and identify the person who receives the provision of services pertaining to a contract for use of high-value electronically transferable prepaid payment instruments from other persons, or with other information necessary for receiving the provision of those services (hereinafter referred to in this Article as "information for use of high-value electronically transferable prepaid payment instruments"), is punished by imprisonment for not more than three years or a fine of not more than 5,000,000 yen, or both. The same applies to a person who, without a legitimate reason such as that it is carried out as an ordinary commercial transaction, is provided with information for use of high-value electronically transferable prepaid payment instruments for consideration.

A person who, impersonating another person, for the purpose of remitting money or receiving a remittance by funds transfer transaction with a specified business operator listed in Article 2, paragraph (2), item (xxxi) (hereinafter in this paragraph and Article 32, paragraph (4), item (i) referred to as a "funds transfer service provider"), or having a third party do so, takes over, receives delivery of or is provided with a card for receiving a remittance pertaining to that funds transfer transaction, information necessary for the remittance or its receipt, or any other thing specified by Cabinet Order as necessary for remittance or its receipt by funds transfer transaction with a funds transfer service provider (hereinafter referred to as "exchange transaction card, etc."), is punished by imprisonment for not more than three years or a fine of not more than 5,000,000 yen, or both. The same applies to a person who, without a legitimate reason such as that it is carried out as an ordinary commercial transaction, takes over, receives delivery of or is provided with an exchange transaction card, etc. for consideration.

A person who, impersonating another person, for the purpose of receiving, or having a third party receive, the provision of services pertaining to an electronic payment instruments transaction contract (meaning a contract the content of which is to carry out any of the acts listed in the items of Article 2, paragraph (10) of that Act; hereinafter the same applies in this paragraph and Article 32, paragraph (4), item (i), (c)) with a specified business operator (limited to a specified business operator listed in Article 2, paragraph (2), item (xxxi)-2 and a specified business operator listed in items (i) through (xv), item (xxv) and item (xxxi) of that paragraph that is deemed to be an electronic payment instruments service provider prescribed in Article 2, paragraph (12) of the Payment Services Act pursuant to Article 62-8, paragraph (2) of that Act; hereinafter in this paragraph and Article 32, paragraph (4), item (i), (c) referred to as an "electronic payment instruments service provider"), is provided with a code attached so as to enable the electronic payment instruments service provider to distinguish and identify the person who receives the provision of services pertaining to an electronic payment instruments transaction contract from other persons, or with other information necessary for receiving the provision of those services (hereinafter referred to in this Article as "information for electronic payment instruments transactions"), is punished by imprisonment for not more than three years or a fine of not more than 5,000,000 yen, or both. The same applies to a person who, without a legitimate reason such as that it is carried out as an ordinary commercial transaction, is provided with information for electronic payment instruments transactions for consideration.

A person who, for the purpose of impersonating another person and receiving the provision of services relating to an electronic payment services use contract (meaning a contract the content of which is to carry out the acts set forth in the items of Article 2, paragraph (17) of the Banking Act, the items of Article 85-3, paragraph (2) of the Shinkin Bank Act, or the items of Article 6-4-3, paragraph (2) of the Act on Financial Businesses by Cooperative; the same applies hereinafter in this paragraph and in Article 32, paragraph (4), item (i), (d)) with a specified business operator (limited to the specified business operators set forth in Article 2, paragraph (2), items (xxxi)-3 through (xxxi)-5; hereinafter in this paragraph and in Article 32, paragraph (4), item (i), (d) referred to as an "electronic payment handling service provider, etc."), or of causing a third party to do so, receives the provision of a code or other information necessary for receiving those services that is assigned so that a person receiving services relating to an electronic payment services use contract at the electronic payment handling service provider, etc. can be distinguished from other persons (hereinafter in this Article referred to as "information for use of electronic payment services") is punished by imprisonment for three years or less or a fine of five million yen or less, or both. A person who, without a legitimate reason such as that it is conducted as an ordinary commercial transaction, receives the provision of information for use of electronic payment services for compensation is likewise punished.

A person who, for the purpose of impersonating another person and receiving the provision of services relating to a cryptoasset exchange contract (meaning a contract the content of which is to carry out the acts set forth in the items of Article 2, paragraph (15) of the Payment Services Act; the same applies hereinafter in this paragraph and in item (i), (e) of paragraph (4) of the following Article) with a cryptoasset exchange service provider, or of causing a third party to do so, receives the provision of a code or other information necessary for receiving those services that is assigned so that a person receiving services relating to a cryptoasset exchange contract at the cryptoasset exchange service provider can be distinguished from other persons (hereinafter in this Article referred to as "information for cryptoasset exchange") is punished by imprisonment for three years or less or a fine of five million yen or less, or both. A person who, without a legitimate reason such as that it is conducted as an ordinary commercial transaction, receives the provision of information for cryptoasset exchange for compensation is likewise punished.

an act of transferring property to a person other than oneself by using deposit contract services, etc. (meaning services relating to the contracts specified in (a) through (e) with the specified business operators set forth in (a) through (e), andincluding services relating to remittance or receipt thereof by a funds transfer transaction with a deposit-taking business operator or funds transfer service provider; the same applies in the following item and item (iii));

a deposit-taking business operator: a deposit contract;

an issuer of high-value electronically transferable prepaid payment instruments: a contract for use of high-value electronically transferable prepaid payment instruments;

an electronic payment instruments service provider: an electronic payment instruments transaction contract;

an electronic payment handling service provider, etc.: an electronic payment services use contract;

a cryptoasset exchange service provider: a cryptoasset exchange contract;

If a representative of a corporation, or an agent, employee or other worker of a corporation or person, commits a violationIn any of a provision set forth in the following items in connection with the business of that corporation or person, in addition to punishing the offendercases, the fine prescribed inperson who committed the relevant itemviolation is imposed on that corporation, and thepunished by a fine prescribed in the relevant Article is imposed on that person.of 500,000 yen or less:

Article 25:When the fine prescribed person has made a false report or submitted false materials in that response to a request under the provisions of Article; 19-9, paragraph (2), or has given a false answer to a question under the provisions of that paragraph.

When the person has submitted an application form or materials prescribed in Article 33: a fine 9, paragraph (1) or (2) of 300 million yen or less;the Applied Payment Act with false statements.

When the preceding person has submitted the notification form under Article: a fine 17, paragraph (1) of 200 million yen or lessthe Applied Payment Act with false statements.

When the person, having been ordered to make a report or submit documents under the provisions of Article 19-18, has made a false report or submitted documents containing false statements (limited to a violation by an applicant for specified compensation for criminal damage or a person who has made a notification under the provisions of Article 17, paragraph (1) of the Applied Payment Act).

Application Mutatis Mutandis of the Financial Instruments and Exchange Act

No English for the amended wording yet.

The provisions Where a representative of Chapter IX of the Financial Instruments and Exchange Act apply mutatis mutandis to cases involving a corporation, or an agent, employee or other worker of a corporation or person, commits a violation of the offenses prescribedprovisions listed in Article 25 and item (i) ofthe following items in connection with the preceding Articlebusiness of that relate corporation or person, in addition to the acts set forth in offender being punished, the corporation is subject to the items of Article 22, paragraph (6)fine prescribed in the relevant item, and the person is subject to the fine prescribed in the relevant main provision.

Article 25: the fine prescribed in that Article;

Article 33: a fine of 300 million yen or less;

Article 34: a fine of 200 million yen or less.

If a representative or manager of a corporation (including an organization that is not a corporation and for which a representative or manager has been designated; hereinafter the same applies in this paragraph), or an agent, employee or other worker of a corporation or person, commits a violation referred to in the preceding Article in connection with the business of that corporation or person, in addition to the offender being punished, the penalty prescribed in that Article is also imposed on that corporation or person.

Where the provisions of the preceding paragraph apply to an organization that is not a corporation, its representative or manager represents the organization in respect of its procedural acts, and the provisions of laws on criminal proceedings that are applicable where a corporation is the accused or a suspect apply mutatis mutandis.

The provisions of Chapter IX of the Financial Instruments and Exchange Act apply mutatis mutandis to cases of the offenses prescribed in Article 25 and in paragraph (1), item (i) of the preceding Article pertaining to the acts listed in the items of Article 22, paragraph (6).