Act on Prevention of Transfer of Criminal Proceeds

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).