Act on Prevention of Transfer of Criminal Proceeds

In this Act, "criminal proceeds" means the proceeds of crime, etc. prescribed in Article 2, paragraph (4) of the Organized Crime Punishment Act or the drug-related criminal proceeds, etc. prescribed in Article 2, paragraph (5) of the Narcotics Special Provisions Act.

In this Act, "specified business operator" means any of the following persons:

a bank;

a Shinkin bank;

a federation of Shinkin banks;

a labor bank;

a federation of labor banks;

a credit cooperative;

a federation of credit cooperatives;

an agricultural cooperative;

a federation of agricultural cooperatives;

a fishery cooperative;

a federation of fishery cooperatives;

a fishery processing cooperative;

a federation of fishery processing cooperatives;

Norinchukin Bank;

Shoko Chukin Bank, Ltd.;

Development Bank of Japan Inc.;

an insurance company;

a foreign insurance company, etc. prescribed in Article 2, paragraph (7) of the Insurance Business Act (Act No. 105 of 1995);

a small amount and short term insurance business operator prescribed in Article 2, paragraph (18) of the Insurance Business Act;

a federation of fishery cooperatives for mutual aid;

a financial instruments business operator prescribed in Article 2, paragraph (9) of the Financial Instruments and Exchange Act (Act No. 25 of 1948);

a securities finance company prescribed in Article 2, paragraph (30) of the Financial Instruments and Exchange Act;

a person that has made a notification of special business activities prescribed in Article 63, paragraph (5) of the Financial Instruments and Exchange Act;

a person that has made a notification of special business activities for foreign investors, etc. prescribed in Article 63-9, paragraph (4) of the Financial Instruments and Exchange Act;

a trust company;

a person that has obtained the registration under Article 50-2, paragraph (1) of the Trust Business Act (Act No. 154 of 2004);

a specified joint real estate venture operator prescribed in Article 2, paragraph (5) of the Act on Specified Joint Real Estate Ventures (Act No. 77 of 1994) (including a trust company or a financial institution that has obtained the authorization under Article 1, paragraph (1) of the Act on Engagement in Trust Business by Financial Institutions (Act No. 43 of 1943) and that engages in the specified joint real estate venture prescribed in Article 2, paragraph (4) of the Act on Specified Joint Real Estate Ventures), a small-scale specified joint real estate venture operator prescribed in paragraph (7) of that Article, a special business operator prescribed in paragraph (9) of that Article, or a qualified special investor-limited business operator prescribed in paragraph (11) of that Article;

a mujin company;

a money lender prescribed in Article 2, paragraph (2) of the Money Lending Business Act (Act No. 32 of 1983);

a person specified by Cabinet Order out of the persons prescribed in Article 2, paragraph (1), item (v) of the Money Lending Business Act;

an issuer of prepaid payment instruments prescribed in Article 2, paragraph (1) of the Payment Services Act (Act No. 59 of 2009) that has made the notification under Article 11-2, paragraph (1) of that Act;

a funds transfer service provider prescribed in Article 2, paragraph (3) of the Payment Services Act;

an electronic payment instruments service provider prescribed in Article 2, paragraph (12) of the Payment Services Act;

an electronic payment handling service provider prescribed in Article 2, paragraph (18) of the Banking Act (Act No. 59 of 1981);

a Shinkin bank electronic payment handling service provider prescribed in Article 85-3-2, paragraph (1) of the Shinkin Bank Act (Act No. 238 of 1951);

a credit cooperative electronic payment handling service provider prescribed in Article 6-4-4, paragraph (1) of the Act on Financial Businesses by Cooperative (Act No. 183 of 1949);

a cryptoasset exchange service provider prescribed in Article 2, paragraph (16) of the Payment Services Act;

a commodity derivatives business operator prescribed in Article 2, paragraph (23) of the Commodity Derivatives Transaction Act (Act No. 239 of 1950);

a book-entry transfer institution prescribed in Article 2, paragraph (2) of the Act on Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001) (including the Bank of Japan, which is deemed to be a book-entry transfer institution pursuant to Article 48 of that Act);

an account management institution prescribed in Article 2, paragraph (4) of the Act on Book-Entry Transfer of Corporate Bonds and Shares;

an electronic monetary claim recording institution prescribed in Article 2, paragraph (2) of the Electronically Recorded Monetary Claims Act (Act No. 102 of 2007);

the Organization for Postal Savings, Postal Life Insurance and Post Office Network, Independent Administrative Agency;

a person that conducts currency exchange business in Japan (meaning the business of buying and selling foreign currency (meaning currency other than Japanese currency) or traveler's checks);

a person that conducts the business of purchasing machinery or other articles designated by a customer and leasing them to that customer (limited to leasing specified by Cabinet Order);

a person that conducts the business of delivering or granting to a person who intends to purchase goods or rights from a specific seller, or to receive services for consideration from a specific service provider (meaning a person that conducts the business of provision of services; hereinafter the same applies in this item) by presenting or notifying a card or other article, or a number, mark or other code (hereinafter referred to as a "credit card, etc."), by means of which that person can do so (hereinafter referred to as a "customer as user"), and, when that customer as user has presented or notified that credit card, etc. and thereby purchased goods or rights from a specific seller or received services for consideration from a specific service provider, delivering to that seller or service provider, directly or via a third party, money equivalent to the price of those goods or rights or the consideration for those services, and also receiving from that customer as user money in the total amount of that price or consideration by a time determined in advance, or receiving, at each time determined in advance, money in an amount calculated on the basis of that total amount by a method determined in advance;

a casino business operator prescribed in Article 2, paragraph (9) of the Act on Development of Specified Integrated Resort Districts (Act No. 80 of 2018);

a real estate broker prescribed in Article 2, item (iii) of the Real Estate Brokerage Act (Act No. 176 of 1952) (including a trust company or a financial institution that has obtained the authorization under Article 1, paragraph (1) of the Act on Engagement in Trust Business by Financial Institutions and that engages in the real estate brokerage business prescribed in Article 2, item (ii) of the Real Estate Brokerage Act (referred to simply as "real estate brokerage business" in the Appended Table) (referred to as a "deemed real estate broker" in Article 22, paragraph (1), item (xvi)));

a person that, as a business, buys and sells gold, platinum or other precious metals specified by Cabinet Order, diamonds or other gems specified by Cabinet Order, or products made of these (hereinafter referred to as "precious metals, etc.");

a person that conducts the business of providing services to a customer by permitting that customer to use the location of the person's residence or office as a place where the customer receives postal items (including correspondence delivery items prescribed in Article 2, paragraph (3) of the Act on Correspondence Delivery by Private Business Operators (Act No. 99 of 2002) and freight similar to postal items in size and weight; the same applies hereinafter) or to use the person's telephone number as the customer's contact telephone number, and by receiving, at that residence or office, postal items addressed to that customer and handing them over to that customer, or by receiving telephone calls (including communications by facsimile machine; the same applies hereinafter) to that telephone number addressed to that customer and communicating their content to that customer, or by automatically forwarding telephone calls to that telephone number addressed to or from that customer to a telephone number designated by that customer;

an attorney (including a registered foreign lawyer) or a legal professional corporation (including a registered foreign lawyer corporation and a joint corporation of attorneys and registered foreign lawyers);

a judicial scrivener or a judicial scrivener corporation;

a certified administrative procedures legal specialist or a certified administrative procedures legal specialist corporation;

a certified public accountant (including a foreign certified public accountant prescribed in Article 16-2, paragraph (5) of the Certified Public Accountants Act (Act No. 103 of 1948)) or an audit corporation;

a certified public tax accountant or a certified public tax accountant corporation;

In this Act, "customer, etc." means a customer (or, for a specified business operator listed in item (xl) of the preceding paragraph, a customer as user) or a person equivalent thereto specified by Cabinet Order.

In order to ensure that measures such as verification of the identification data, etc. of customers, etc. by specified business operators, preservation of transaction records, etc., and notification of suspicious transactions, etc. are properly taken, the National Public Safety Commission is to carry out, for specified business operators, the provision of information on the methods relating to the transfer of criminal proceeds and other assistance, and is to endeavor to deepen the public's understanding of the importance of prevention of transfer of criminal proceeds.

The National Public Safety Commission is to collect, organize and analyze promptly and accurately information on suspicious transactions notified by specified business operators and other information on criminal proceeds, so that such information is effectively utilized for the investigation of criminal cases, the investigation of violation cases, and international information exchange and other cooperation concerning prevention of transfer of criminal proceeds.

The National Public Safety Commission is to, every year, conduct research and analysis on the methods relating to the transfer of criminal proceeds and other aspects of the state of transfer of criminal proceeds, and then prepare and publish a criminal proceeds transfer risk assessment report stating, for each type of transaction conducted by specified business operators and other business operators, the degree of risk of transfer of criminal proceeds through that transaction and other results of that research and analysis.

When the National Public Safety Commission finds it necessary in order to collect, organize and analyze information under the provisions of paragraph (2) and to conduct the research and analysis under the provisions of the preceding paragraph, it may request relevant administrative organs, specified business operators and other relevant persons to cooperate by submitting materials, expressing opinions, giving explanations and in other necessary ways.

In addition to what is provided for in the preceding paragraph, the National Public Safety Commission and other relevant administrative organs and the relevant organs of local governments are to cooperate with each other on prevention of transfer of criminal proceeds.

A specified business operator (excluding a specified business operator listed in Article 2, paragraph (2), item (xlv) (referred to as an "attorney, etc." in Article 12); the same applies hereinafter) must, when conducting with a customer, etc. a transaction specified in the right-hand column of the Appended Table (referred to as a "specified transaction" in item (ii) of the following paragraph, excluding one that falls under the transactions prescribed in the first sentence of that paragraph) out of the business specified in the middle column of that table (hereinafter referred to as "specified business") corresponding to the category of specified business operator listed in the left-hand column of that table, verify the following matters concerning that customer, etc. by the method specified by order of the competent ministry.

identification data (meaning, for a natural person, the name, residence (for a foreign national who has no residence in Japan and is specified by Cabinet Order, the matters specified by order of the competent ministry) and date of birth, and for a corporation, the name and the location of its head office or principal office; the same applies hereinafter);

the purpose of the transaction;

in the case where the customer, etc. is a natural person, the occupation, and in the case where the customer, etc. is a corporation, the content of its business;

in the case where the customer, etc. is a corporation and there is a person specified by order of the competent ministry as being in a relationship that makes it possible to substantially control the management of its business, the identification data of that person.

A specified business operator must, when conducting with a customer, etc. a transaction falling under any of the following items out of its specified business, verify, as provided by order of the competent ministry, with respect to that customer, etc., the matters set out in the items of the preceding paragraph and, in the case where the transaction involves a transfer of property whose value exceeds the amount specified by Cabinet Order, the status of assets and income (for a specified business operator listed in Article 2, paragraph (2), item (xlvi), the matters set out in the items of the preceding paragraph). In this case, the verification of the matters set out in item (i) of that paragraph conducted upon a transaction listed in item (i), (a) or (b) is to be conducted by a method different from the method of verifying those matters taken when the related verification at the time of transaction prescribed in item (i), (a) or (b) was conducted, and the verification of the status of assets and income is to be conducted to the extent necessary for judging whether the case falls under one where notification under Article 8, paragraph (1) or (2) is to be made.

a transaction specified by Cabinet Order as falling under any of the following:

a transaction where the counterparty to the transaction is suspected of impersonating the customer, etc. or representative, etc. (meaning the representative, etc. prescribed in paragraph (6); the same applies in (b)) concerned in the verification under the preceding paragraph or this paragraph (including where these provisions are applied with replacement of terms pursuant to paragraph (5)) or paragraph (4) conducted at the time of another transaction related to that transaction (referred to as "related verification at the time of transaction" in (b));

a transaction with a customer, etc. suspected of having misrepresented the matters relating to the related verification at the time of transaction when it was conducted (including a customer, etc. whose representative, etc. is suspected of having misrepresented those matters).

among specified transactions, one with a customer, etc. who resides or is located in a country or region specified by Cabinet Order as one found not to have sufficiently established a system for prevention of transfer of criminal proceeds (hereinafter in this item referred to as a "specified country, etc."), or otherwise one involving a transfer of property to a person who resides or is located in a specified country, etc.;

in addition to those set out in the preceding two items, a transaction specified by Cabinet Order as one found to have a particularly high need for strict customer management for the prevention of transfer of criminal proceeds.

The provisions of paragraph (1) do not apply to a transaction specified by Cabinet Order out of the transactions with a customer, etc. for whom the specified business operator has already conducted, at the time of another transaction, the verification under the provisions of that paragraph or the preceding paragraph (including where these provisions are applied with replacement of terms pursuant to paragraph (5)) (limited to a verification for which it has prepared, and is preserving, a verification record under Article 6) and the transactions specified by Cabinet Order as equivalent to them.

When a specified business operator conducts the verification under the provisions of paragraph (1) or (2) concerning a customer, etc., in the case where the representative of a company conducts with that specified business operator, on behalf of that company, a transaction prescribed in paragraph (1) or the first sentence of paragraph (2) (hereinafter referred to as a "specified transaction, etc."), or otherwise where the natural person actually in charge of the specified transaction, etc. with that specified business operator differs from that customer, etc. (excluding the case prescribed in the following paragraph), it must, in addition to that verification of that customer, etc., also verify the identification data of the natural person in charge of that specified transaction, etc., as provided by order of the competent ministry.

A customer, etc. and a representative, etc. (meaning the natural person actually in charge of the specified transaction, etc. prescribed in the preceding two paragraphs; the same applies hereinafter) must not, when a specified business operator conducts the verification under the provisions of paragraph (1) or (2) (including where these provisions are applied with replacement of terms pursuant to the preceding paragraph) or paragraph (4) (hereinafter referred to as "verification at the time of transaction"), misrepresent to that specified business operator the matters relating to that verification at the time of transaction.

When a customer, etc. or representative, etc. does not comply with verification at the time of transaction upon conducting a specified transaction, etc., the specified business operator may refuse to perform the obligations relating to that specified transaction, etc. until that customer, etc. or representative, etc. complies.

When a specified business operator has conducted verification at the time of transaction, it must immediately prepare, by the method specified by order of the competent ministry, a record (hereinafter referred to as a "verification record") of the matters relating to that verification at the time of transaction, the measures taken for that verification at the time of transaction, and other matters specified by order of the competent ministry.

A specified business operator must preserve a verification record for seven years from the day on which the contract relating to the specified transaction, etc. terminated or another day specified by order of the competent ministry.

A specified business operator (excluding a specified business operator prescribed in the following paragraph) must, in the case where it has conducted a transaction pertaining to specified business, except for a transaction of a small amount or other transaction specified by Cabinet Order, immediately prepare, by the method specified by order of the competent ministry, a record of the matters for searching the verification record of the customer, etc., the date and content of that transaction, and other matters specified by order of the competent ministry.

A specified business operator listed in Article 2, paragraph (2), items (xlvi) through (xlix) must, in the case where it has carried out agency, etc. for specified mandated acts (meaning the agency, etc. for specified mandated acts prescribed in the middle column of the row for the persons listed in Article 2, paragraph (2), item (xlvi) in the Appended Table; the same applies hereinafter in this Article and in paragraph (2) of the following Article), except for agency, etc. for specified mandated acts specified by Cabinet Order, such as agency for the disposition of property of small value, immediately prepare, by the method specified by order of the competent ministry, a record of the matters for searching the verification record of the customer, etc., the date and content of that agency, etc. for specified mandated acts, and other matters specified by order of the competent ministry.

A specified business operator must preserve the records prescribed in the preceding two paragraphs (hereinafter referred to as "transaction records, etc.") for seven years from the day on which the transaction or the agency, etc. for specified mandated acts was carried out.

A specified business operator (excluding a specified business operator listed in Article 2, paragraph (2), items (xlvi) through (xlix)) must, with regard to a transaction pertaining to specified business, determine whether there is a suspicion that property received in that transaction is criminal proceeds, or that the customer, etc. is committing, in relation to that transaction, an act constituting the offense under Article 10 of the Organized Crime Punishment Act or the offense under Article 6 of the Narcotics Special Provisions Act, and if it finds that there is such a suspicion, must promptly notify the administrative agency of the matters specified by Cabinet Order, as provided by Cabinet Order.

A specified business operator listed in Article 2, paragraph (2), items (xlvii) through (xlix) must, with regard to agency, etc. for specified mandated acts, determine whether there is a suspicion that property received in that agency, etc. for specified mandated acts is criminal proceeds, or that the customer, etc. is committing, in relation to that agency, etc. for specified mandated acts, an act constituting the offense under Article 10 of the Organized Crime Punishment Act or the offense under Article 6 of the Narcotics Special Provisions Act, and if it finds that there is such a suspicion, must promptly notify the administrative agency of the matters specified by Cabinet Order, as provided by Cabinet Order. However, this does not apply if those matters include matters that must not be divulged under the provisions of the Act specified in the respective items below in accordance with the category of specified business operator listed in the respective items.

a specified business operator listed in Article 2, paragraph (2), item (xlvii): Article 12 of the Certified Administrative Procedures Legal Specialist Act (Act No. 4 of 1951);

a specified business operator listed in Article 2, paragraph (2), item (xlviii): Article 27 of the Certified Public Accountants Act (including as applied mutatis mutandis pursuant to Article 16-2, paragraph (6) of that Act);

a specified business operator listed in Article 2, paragraph (2), item (xlix): Article 38 of the Certified Public Tax Accountant Act (Act No. 237 of 1951).

The determination under the preceding two paragraphs must be made in light of the results of the verification at the time of transaction pertaining to the transaction under paragraph (1) or the agency, etc. for specified mandated acts under the preceding paragraph (hereinafter in this paragraph referred to as "transaction, etc."), the mode of that transaction, etc. and other circumstances, and the contents of the criminal proceeds transfer risk assessment report prescribed in Article 3, paragraph (3), and by a method of checking whether there is anything suspicious about that transaction, etc. in accordance with the items specified by order of the competent ministry, or by another method specified by order of the competent ministry.

A specified business operator (including its officers and employees) must not divulge the fact that it is about to make or has made a notification under the provisions of paragraph (1) or (2) (hereinafter referred to as a "suspicious transaction report") to the customer, etc. pertaining to that suspicious transaction report or to a person related to that person.

A specified business operator (limited to a specified business operator listed in Article 2, paragraph (2), items (i) through (xv) and item (xxxi); the same applies in the following Article) must, when concluding with a foreign-based exchange transaction operator (meaning a person that is located in a foreign country (meaning a country or region outside Japan; the same applies hereinafter) and engages in funds transfer transactions as a business; the same applies hereinafter) a contract the content of which is to carry out funds transfer transactions on an ongoing basis or repeatedly, verify the following matters concerning that foreign-based exchange transaction operator by the method specified by order of the competent ministry.

The foreign-based exchange transaction operator has established a system that conforms to the standards specified by order of the competent ministry as necessary for accurately carrying out measures equivalent to verification at the time of transaction, etc., including that it has placed the business offices and other facilities necessary for accurately carrying out measures equivalent to the measures under the provisions of Article 4, the preceding three Articles and the following Article (hereinafter in this item referred to as "measures equivalent to verification at the time of transaction, etc."), and a person who supervises and manages the implementation of measures equivalent to verification at the time of transaction, etc., in the country in which the foreign-based exchange transaction operator is located or in a foreign country other than that country, and that, with respect to the implementation of measures equivalent to verification at the time of transaction, etc., it is in a state of being under appropriate supervision by an authority of the country in which it is located or a foreign authority of that foreign country that performs duties equivalent to the duties of the administrative agencies prescribed in Articles 15 through 18 (referred to in the following item simply as "state of being under supervision");

The foreign-based exchange transaction operator has not concluded a contract the content of which is to carry out funds transfer transactions on an ongoing basis or repeatedly with a person that engages in funds transfer transactions as a business and that is not in a state of being under supervision.

When a specified business operator carries out with a customer a funds transfer transaction pertaining to a payment from Japan to a foreign country (excluding a country or region specified by Cabinet Order; the same applies hereinafter in this Article) (excluding one by a method specified by Cabinet Order, such as issuance of a check) and entrusts that payment to another specified business operator or a foreign-based exchange transaction operator (excluding one located in the country or region specified by Cabinet Order; the same applies hereinafter in this Article), it must do so by notifying them of the identification data on that customer and on the other party to that customer's payment and other matters specified by order of the competent ministry.

When a specified business operator has been entrusted or further entrusted with a payment from Japan to a foreign country upon receiving a notification from another specified business operator under the provisions of the preceding paragraph or this paragraph, and further entrusts that payment to another specified business operator or a foreign-based exchange transaction operator, it must do so by notifying them of the matters pertaining to that notification.

When a specified business operator has been entrusted or further entrusted with a payment from a foreign country to Japan or from a foreign country to another foreign country upon receiving a notification from a foreign-based exchange transaction operator under the provisions of foreign laws and regulations equivalent to the provisions of this Article, and further entrusts that payment to another specified business operator or a foreign-based exchange transaction operator, it must do so by notifying them of the matters pertaining to that notification (limited to those specified by order of the competent ministry).

When a specified business operator has further entrusted a payment from a foreign country to Japan or from a foreign country to another foreign country upon receiving a notification from another specified business operator under the provisions of the preceding paragraph or this paragraph, and further entrusts that payment to another specified business operator or a foreign-based exchange transaction operator, it must do so by notifying them of the matters pertaining to that notification (limited to those specified by order of the competent ministry).

The foreign-based electronic payment instruments service provider has established a system that conforms to the standards specified by order of the competent ministry as necessary for accurately carrying out measures equivalent to verification at the time of transaction, etc., including that it has placed the business offices and other facilities necessary for accurately carrying out measures equivalent to the measures under the provisions of Article 4, Articles 6 through 8 and the following Article (hereinafter in this item referred to as "measures equivalent to verification at the time of transaction, etc."), and a person who supervises and manages the implementation of measures equivalent to verification at the time of transaction, etc., in the country in which the foreign-based electronic payment instruments service provider is located or in a foreign country other than that country, and that, with respect to the implementation of measures equivalent to verification at the time of transaction, etc., it is in a state of being under appropriate supervision by an authority of the country in which it is located or a foreign authority of that foreign country that performs duties equivalent to the duties of the administrative agencies prescribed in Articles 15 through 18 (referred to in the following item simply as "state of being under supervision");

The foreign-based electronic payment instruments service provider has not concluded a contract the content of which is to carry out transfers of electronic payment instruments on an ongoing basis or repeatedly with a foreign-based electronic payment instruments service provider that is not in a state of being under supervision.

An electronic payment instruments service provider must, in the case where it carries out a transfer of electronic payment instruments at the request of a customer, when it makes that transfer to a receiving customer (meaning a person that receives that transfer and that has entrusted the management of electronic payment instruments to another electronic payment instruments service provider or a foreign electronic payment instruments service provider (meaning a foreign electronic payment instruments service provider prescribed in Article 2, paragraph (13) of the Payment Services Act, excluding one located in a country or region specified by Cabinet Order) (hereinafter in this Article referred to as "other electronic payment instruments service provider, etc.") as a customer of that other electronic payment instruments service provider, etc.; the same applies hereinafter in this Article and Article 22, paragraph (2), item (ii)), or when it entrusts that transfer to a receiving customer to another electronic payment instruments service provider, etc., carry out the transfer by notifying the identification data on the customer who made the request and on the receiving customer and other matters specified by order of the competent ministry to the other electronic payment instruments service provider, etc. that manages the electronic payment instruments pertaining to that transfer for that receiving customer (excluding the person that has been entrusted as stated above) or to the person that has been entrusted as stated above.

An electronic payment instruments service provider must, in the case where it has been entrusted or further entrusted with a transfer of electronic payment instruments upon receiving a notification from another electronic payment instruments service provider, etc. under the provisions of this Article or provisions of the laws and regulations of a foreign country equivalent thereto, when it makes that transfer to a receiving customer, or when it further entrusts that transfer to a receiving customer to another electronic payment instruments service provider, etc., carry out the transfer by notifying the matters pertaining to that notification (limited to those specified by order of the competent ministry) to the other electronic payment instruments service provider, etc. that manages the electronic payment instruments pertaining to that transfer for that receiving customer (excluding the person that has been further entrusted as stated above) or to the person that has been further entrusted as stated above.

A specified business operator listed in Article 2, paragraph (2), item (xxxii) (hereinafter referred to as a "cryptoasset exchange service provider") must, when entering into a contract with a foreign-based cryptoasset exchange service provider (meaning a person that is located in a foreign country and engages in business of the same type as cryptoasset exchange services (meaning cryptoasset exchange services prescribed in Article 2, paragraph (15) of the Payment Services Act); the same applies hereinafter in this Article) the content of which is to carry out transfers of cryptoassets (meaning cryptoassets prescribed in Article 2, paragraph (14) of that Act; the same applies hereinafter) (excluding those accompanying the exchange, etc. of cryptoassets prescribed in Article 2, paragraph (15) of that Act; the same applies hereinafter) on an ongoing basis or repeatedly, verify the following matters concerning that foreign-based cryptoasset exchange service provider by the method specified by order of the competent ministry.

The foreign-based cryptoasset exchange service provider has established a system that conforms to the standards specified by order of the competent ministry as necessary for accurately carrying out measures equivalent to verification at the time of transaction, etc., including that it has placed the business offices and other facilities necessary for accurately carrying out measures equivalent to the measures under the provisions of Article 4, Articles 6 through 8 and the following Article (hereinafter in this item referred to as "measures equivalent to verification at the time of transaction, etc."), and a person who supervises and manages the implementation of measures equivalent to verification at the time of transaction, etc., in the country in which the foreign-based cryptoasset exchange service provider is located or in a foreign country other than that country, and that, with respect to the implementation of measures equivalent to verification at the time of transaction, etc., it is in a state of being under appropriate supervision by an authority of the country in which it is located or a foreign authority of that foreign country that performs duties equivalent to the duties of the administrative agencies prescribed in Articles 15 through 18 (referred to in the following item simply as "state of being under supervision");

The foreign-based cryptoasset exchange service provider has not entered into a contract the content of which is to carry out transfers of cryptoassets on an ongoing basis or repeatedly with a foreign-based cryptoasset exchange service provider that is not in a state of being under supervision.

A cryptoasset exchange service provider must, in the case where it carries out a transfer of cryptoassets at the request of a customer, when it makes that transfer to a receiving customer (meaning a person that receives that transfer and that has entrusted the management of cryptoassets to another cryptoasset exchange service provider or a foreign cryptoasset exchange service provider (meaning a foreign cryptoasset exchange service provider prescribed in Article 2, paragraph (17) of the Payment Services Act, excluding one located in a country or region specified by Cabinet Order) (hereinafter in this Article referred to as "other cryptoasset exchange service provider, etc.") as a customer of that other cryptoasset exchange service provider, etc.; the same applies hereinafter in this Article and Article 22, paragraph (2), item (iii)), or when it entrusts that transfer to a receiving customer to another cryptoasset exchange service provider, etc., carry out the transfer by notifying the identification data on the customer who made the request and on the receiving customer and other matters specified by order of the competent ministry to the other cryptoasset exchange service provider, etc. that manages the cryptoassets pertaining to that transfer for that receiving customer (excluding the person that has been entrusted as stated above) or to the person that has been entrusted as stated above.

A cryptoasset exchange service provider must, in the case where it has been entrusted or further entrusted with a transfer of cryptoassets upon receiving a notification from another cryptoasset exchange service provider, etc. under the provisions of this Article or provisions of the laws and regulations of a foreign country equivalent thereto, when it makes that transfer to a receiving customer, or when it further entrusts that transfer to a receiving customer to another cryptoasset exchange service provider, etc., carry out the transfer by notifying the matters pertaining to that notification (limited to those specified by order of the competent ministry) to the other cryptoasset exchange service provider, etc. that manages the cryptoassets pertaining to that transfer for that receiving customer (excluding the person that has been further entrusted as stated above) or to the person that has been further entrusted as stated above.

In order to accurately carry out measures such as verification at the time of transaction, preservation of transaction records, etc. and suspicious transaction reports (hereinafter in this Article referred to as "measures for verification at the time of transaction, etc."), a specified business operator is to take measures to keep up to date the information on the matters it has verified in the verification at the time of transaction, and must also endeavor to take the following measures.

Provision of education and training to employees;

Preparation of rules on the implementation of measures for verification at the time of transaction, etc.;

Appointment of a person to supervise and manage audits and other operations necessary for the accurate implementation of measures for verification at the time of transaction, etc.;

Other measures specified by order of the competent ministry as measures to be taken in consideration of the contents of the criminal proceeds transfer risk assessment report prescribed in Article 3, paragraph (3).

Measures equivalent to verification at the time of transaction, preparation and preservation of verification records, preparation and preservation of transaction records, etc., and measures for accurately carrying out these, by attorneys, etc. are as provided by the rules of the Japan Federation of Bar Associations, in line with the example of the specified business operators listed in Article 2, paragraph (2), item (xlvi).

The provisions of Article 5 apply mutatis mutandis to measures equivalent to verification at the time of transaction that attorneys, etc. take under the provisions of the rules of the Japan Federation of Bar Associations established pursuant to the provisions of the preceding paragraph.

The government and the Japan Federation of Bar Associations are to cooperate with each other with regard to the prevention of transfer of criminal proceeds.

If the National Public Safety Commission finds that matters pertaining to suspicious transaction reports, matters pertaining to notifications under the provisions of Article 109, paragraph (1) of the Act on Development of Specified Integrated Resort Districts, information provided by an authority of a foreign country that performs duties equivalent to the duties of the National Public Safety Commission prescribed in Article 8, this Article and the following Article, and the results of organizing or analyzing these (hereinafter referred to as "information on suspicious transactions") would contribute to the investigation of a criminal case or the investigation of a violation case pertaining to a crime listed in Article 2, paragraph (2), item (i), (a) or (b) of the Organized Crime Punishment Act or item (ii), (d) of that paragraph, a crime under Article 10, paragraph (3) of the Organized Crime Punishment Act, a crime listed in the items of Article 2, paragraph (2) of the Narcotics Special Provisions Act, or a crime under Article 6, paragraph (3) of the Narcotics Special Provisions Act, conducted by a public prosecutor, a public prosecutor's assistant officer or a judicial police official, or a relevant official of the National Tax Agency, a Regional Taxation Bureau or a tax office, a customs officer, a tax collection official, an official of the Japan Fair Trade Commission (limited to a person designated under Article 101, paragraph (1) of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Act No. 54 of 1947)) or an official of the Securities and Exchange Surveillance Commission (hereinafter in this Article referred to as a "public prosecutor, etc."), the National Public Safety Commission is to provide that information to the public prosecutor, etc.

Where a public prosecutor, etc. finds it necessary for the investigation of a criminal case or the investigation of a violation case pertaining to a crime prescribed in the preceding paragraph, the public prosecutor, etc. may request the National Public Safety Commission to allow inspection or copying of the records of information on suspicious transactions, or to send a copy thereof.

The National Public Safety Commission may provide to an authority of a foreign country prescribed in paragraph (1) of the preceding Article information on suspicious transactions that it finds would contribute to the performance of the duties of that authority (limited to duties equivalent to the duties of the National Public Safety Commission prescribed in Article 8, the preceding Article and this Article; the same applies in the following paragraph).

With regard to the provision of information on suspicious transactions under the preceding paragraph, appropriate measures must be taken so that the information on suspicious transactions is not used for any purpose other than the performance of the duties of the authority of a foreign country prescribed in paragraph (1) of the preceding Article and, unless there is consent under the following paragraph, is not used for the investigation (limited to that after the criminal facts that are its subject have been specified) or trial (hereinafter in this Article referred to as "investigation, etc.") of a criminal case of a foreign country.

When there is a request from a foreign country, the National Public Safety Commission may consent to the use of information on suspicious transactions provided under the provisions of paragraph (1) for the investigation, etc. of the criminal case pertaining to the request, except in a case falling under any of the following items.

the crime subject to the investigation, etc. of the criminal case pertaining to the request is a political crime or the request is found to have been made for the purpose of conducting the investigation, etc. of a political crime;

except as otherwise provided in an international commitment (meaning an international commitment concerning the provision of information on suspicious transactions under the provisions of paragraph (1); the same applies in paragraph (5)), supposing that the act pertaining to the crime subject to the investigation, etc. of the criminal case pertaining to the request had been committed in Japan, that act would not constitute a crime under the laws and regulations of Japan;

the foreign country that has made the request has not ensured that it will accept a similar request from Japan.

When giving the consent under the preceding paragraph, the National Public Safety Commission must obtain in advance the confirmation of the Minister of Justice that the case does not fall under item (i) or (ii) of that paragraph, and the confirmation of the Minister for Foreign Affairs that the case does not fall under item (iii) of that paragraph.

If the provision of information on suspicious transactions under the provisions of paragraph (1) is made on the basis of an international commitment that sets out the scope of the investigation, etc. of criminal cases of a foreign country (limited to investigation, etc. other than investigation, etc. concerning a political crime) in which information on suspicious transactions may be used, the consent under paragraph (3) is deemed to have been given for the use of that information on suspicious transactions within that scope.

An administrative agency may, to the extent necessary for the enforcement of this Act, request a specified business operator to submit reports or materials concerning its business.

An administrative agency may, to the extent necessary for the enforcement of this Act, 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.

An official who conducts an on-site inspection under the provisions of the preceding paragraph must carry a certificate showing the official's status and present it when requested by a person concerned.

The authority to conduct an on-site inspection under paragraph (1) must not be interpreted as having been granted for the purpose of a criminal investigation.

The provisions of paragraph (1) do not apply to the Bank of Japan, which is a specified business operator.

When an administrative agency finds it necessary in order to ensure the proper and smooth implementation of the measures to be taken by specified business operators as provided for in this Act, it may give necessary guidance, advice and recommendations to a specified business operator.

When an administrative agency finds that a specified business operator is in violation, in relation to its business, of the provisions of Article 4, paragraph (1) or (2) (including where these provisions are applied with replacement of terms pursuant to paragraph (5) of that Article) or paragraph (4) of that Article, Article 6, Article 7, Article 8, paragraphs (1) through (4), or Articles 9 through 10-5, it may order that specified business operator to take the measures necessary to rectify that violation.

The National Public Safety Commission may, to the extent necessary for stating its opinion under the provisions of the preceding paragraph, request a specified business operator to submit reports or materials concerning its business, or instruct a prefectural police that it finds appropriate to conduct necessary investigations.

When the National Public Safety Commission intends to give the approval under the preceding paragraph, it must notify the administrative agency (or, where the administrative agency is a prefectural governor, that prefectural governor via the competent minister) to that effect in advance.

An administrative agency that has received the notification under the preceding paragraph may, as provided by Cabinet Order, request the National Public Safety Commission to hold the consultation necessary for coordinating the exercise of authority under the provisions of Article 16, paragraph (1) with the exercise of authority by the prefectural police under the provisions of paragraph (3). In this case, the National Public Safety Commission must comply with the request.

In addition to what is provided for in this Act, matters necessary for implementing this Act are specified by order of the competent ministry.

When a Cabinet Order or an order of the competent ministry is established, amended or repealed based on the provisions of this Act, necessary transitional measures (including transitional measures concerning penal provisions) may be provided for by that Cabinet Order or order of the competent ministry, within the scope judged reasonably necessary in connection with that establishment, amendment or repeal.

The administrative agency under this Act is, in accordance with the category of specified business operator listed in the following items, the person specified in each of those items with regard to matters pertaining to that specified business operator.

a specified business operator listed in Article 2, paragraph (2), items (i) through (iii), item (vi), item (vii), items (xvii) through (xix), items (xxi) through (xxvi), items (xxviii) through (xxxii) and item (xlviii): the Prime Minister;

a specified business operator listed in Article 2, paragraph (2), item (iv) and item (v): the Prime Minister and the Minister of Health, Labour and Welfare;

a specified business operator listed in Article 2, paragraph (2), item (viii) and item (ix): the administrative agency prescribed in Article 98, paragraph (1) of the Agricultural Co-operatives Act (Act No. 132 of 1947);

a specified business operator listed in Article 2, paragraph (2), items (x) through (xiii) and item (xx): the administrative agency prescribed in Article 127, paragraph (1) of the Fishery Industry Cooperative Act (Act No. 242 of 1948);

a specified business operator listed in Article 2, paragraph (2), item (xiv): the Minister of Agriculture, Forestry and Fisheries and the Prime Minister;

a specified business operator listed in Article 2, paragraph (2), item (xv): the competent minister prescribed in Article 56, paragraph (2) of the Shoko Chukin Bank Limited Act (Act No. 74 of 2007);

a specified business operator listed in Article 2, paragraph (2), item (xvi): the competent minister prescribed in Article 29, paragraph (1) of the Act on Development Bank of Japan Inc. (Act No. 85 of 2007);

a specified business operator listed in Article 2, paragraph (2), item (xxvii): the competent minister prescribed in Article 73, paragraph (1) of the Act on Specified Joint Real Estate Ventures;

a specified business operator listed in Article 2, paragraph (2), item (xxxiii): the competent minister prescribed in Article 354, paragraph (1) of the Commodity Derivatives Transaction Act;

a specified business operator listed in Article 2, paragraph (2), items (xxxiv) through (xxxvi) (excluding the persons listed in the following item): the Prime Minister and the Minister of Justice;

a person that handles government bonds, out of the specified business operators listed in Article 2, paragraph (2), item (xxxiv) and item (xxxv): the Prime Minister, the Minister of Justice and the Minister of Finance;

a specified business operator listed in Article 2, paragraph (2), item (xxxvii) and, out of the specified business operators listed in item (xliv) of that paragraph, a person that conducts the business of providing services of receiving telephone calls addressed to a customer and communicating their content to that customer, or of automatically forwarding telephone calls addressed to or from a customer to a telephone number designated by that customer: the Minister of Internal Affairs and Communications;

a specified business operator listed in Article 2, paragraph (2), item (xxxviii) and item (xlix): the Minister of Finance;

a specified business operator listed in Article 2, paragraph (2), items (xxxix), (xl) and (xliii) and, out of the specified business operators listed in item (xliv) of that paragraph, a person that conducts the business of providing services of receiving postal items addressed to a customer and handing them over to that customer: the Minister of Economy, Trade and Industry;

a specified business operator listed in Article 2, paragraph (2), item (xli): the Casino Administration Commission;

a specified business operator listed in Article 2, paragraph (2), item (xlii): the Minister of Land, Infrastructure, Transport and Tourism or the prefectural governor that granted the license under Article 3, paragraph (1) of the Real Estate Brokerage Act (or, for a specified business operator that is a deemed real estate broker, the Minister of Land, Infrastructure, Transport and Tourism);

a specified business operator listed in Article 2, paragraph (2), item (xlvi): the Minister of Justice;

a specified business operator listed in Article 2, paragraph (2), item (xlvii): the prefectural governor.

Notwithstanding the provisions of the preceding paragraph, the administrative agency concerning the following matters is the administrative agency specified in that paragraph and the Minister of Finance.

the matters provided for in Articles 9 and 10 concerning a specified business operator prescribed in Article 9 (excluding a specified business operator listed in Article 2, paragraph (2), item (xv));

the matters provided for in Article 10-2 concerning an electronic payment instruments service provider, and the matters provided for in Article 10-3 (excluding those relating to the case where an electronic payment instruments service provider has received from a customer a request for a transfer of electronic payment instruments to a receiving customer (limited to a person who is a customer of another electronic payment instruments service provider) and the transfer of electronic payment instruments for that purpose (including a transfer carried out by an electronic payment instruments service provider that has been entrusted or further entrusted with it) is carried out only within Japan);

the matters provided for in Article 10-4 concerning a cryptoasset exchange service provider, and the matters provided for in Article 10-5 (excluding those relating to the case where a cryptoasset exchange service provider has received from a customer a request for a transfer of cryptoassets to a receiving customer (limited to a person who is a customer of another cryptoasset exchange service provider) and the transfer of cryptoassets for that purpose (including a transfer carried out by a cryptoasset exchange service provider that has been entrusted or further entrusted with it) is carried out only within Japan).

Notwithstanding the provisions of paragraph (1), where a person that has obtained the registration prescribed in Article 33-2 of the Financial Instruments and Exchange Act, out of the specified business operators, conducts registered financial institution business (meaning registered financial institution business prescribed in Article 33-3, paragraph (1), item (vi), (a) of that Act; the same applies in paragraph (6), item (ii)), the administrative agency concerning matters pertaining to that registered financial institution business is the Prime Minister.

The Prime Minister delegates the authority under this Act (limited to authority under the jurisdiction of the Financial Services Agency, excluding the authority specified by Cabinet Order) to the Commissioner of the Financial Services Agency.

The Commissioner of the Financial Services Agency delegates, out of the authority delegated pursuant to the provisions of the preceding paragraph (excluding that relating to Articles 8, 17 and 18; referred to as "authority of the Commissioner of the Financial Services Agency" in the following paragraph), the authority pertaining to the following acts to the Securities and Exchange Surveillance Commission. However, this does not preclude the Commissioner of the Financial Services Agency from personally exercising the authority to order the submission of reports or materials.

acts by a specified business operator listed in Article 2, paragraph (2), items (xxi), (xxiii) and (xxiv);

acts pertaining to registered financial institution business.

As provided by Cabinet Order, the Commissioner of the Financial Services Agency may delegate to the Securities and Exchange Surveillance Commission, out of the authority of the Commissioner of the Financial Services Agency, the authority pertaining to acts by a specified business operator listed in Article 2, paragraph (2), items (xxii), (xxxiv) and (xxxv) (excluding the acts listed in the items of the preceding paragraph).

In the cases of the preceding two paragraphs, a request for review of an order to submit reports or materials issued by the Securities and Exchange Surveillance Commission may be made only to the Securities and Exchange Surveillance Commission.

In addition to what is prescribed in the preceding paragraphs, matters necessary for the exercise of the authority of administrative agencies under the provisions of Article 8 and Articles 15 through 19 are specified by Cabinet Order.

In this Act, the competent minister is as follows:

the minister or commission specified in each of (a) through (e) below, in accordance with the category of specified business operator listed in (a) through (e) below, with regard to matters pertaining to that specified business operator (excluding the matters listed in the following item through item (iv)):

a specified business operator other than those listed in (b) through (e): the minister or commission that is the administrative agency specified in paragraph (1) of the preceding Article;

a specified business operator listed in Article 2, paragraph (2), item (viii) and item (ix): the competent minister prescribed in Article 98, paragraph (2) of the Agricultural Co-operatives Act;

a specified business operator listed in Article 2, paragraph (2), items (x) through (xiii) and item (xx): the competent minister prescribed in Article 127, paragraph (2) of the Fishery Industry Cooperative Act;

a specified business operator listed in Article 2, paragraph (2), item (xlii): the Minister of Land, Infrastructure, Transport and Tourism;

a specified business operator listed in Article 2, paragraph (2), item (xlvii): the Minister of Internal Affairs and Communications;

the matters listed in the items of paragraph (2) of the preceding Article: the ministers specified in (a) through (c) of the preceding item and the Minister of Finance;

the matters prescribed in that paragraph concerning a specified business operator prescribed in paragraph (3) of the preceding Article: the Prime Minister;

the matters prescribed in that paragraph concerning a specified business operator prescribed in paragraph (4) of the preceding Article: the National Public Safety Commission.

In this Act, the order of the competent ministry is an order issued jointly by the Prime Minister, the Minister of Internal Affairs and Communications, the Minister of Justice, the Minister of Finance, the Minister of Health, Labour and Welfare, the Minister of Agriculture, Forestry and Fisheries, the Minister of Economy, Trade and Industry and the Minister of Land, Infrastructure, Transport and Tourism.

an agricultural cooperative and a federation of agricultural cooperatives that conduct the business referred to in Article 10, paragraph (1), item (iii) of the Agricultural Co-operatives Act;

a fishery cooperative that conducts the business referred to in Article 11, paragraph (1), item (iv) of the Fishery Industry Cooperative Act;

a federation of fishery cooperatives that conducts the business referred to in Article 87, paragraph (1), item (iv) of the Fishery Industry Cooperative Act;

a fishery processing cooperative that conducts the business referred to in Article 93, paragraph (1), item (ii) of the Fishery Industry Cooperative Act;

a federation of fishery processing cooperatives that conducts the business referred to in Article 97, paragraph (1), item (ii) of the Fishery Industry Cooperative Act.

If, for the purpose of concealing the identification data of a customer, etc. or representative, etc., a person commits an act in violation of the provisions of Article 4, paragraph (6) (limited to one pertaining to the identification data of that customer, etc. or representative, etc.), the person who committed that violation is punished by imprisonment for not more than three years or a fine of not more than 5,000,000 yen, or both.

A person who, knowing that the other party has the purpose referred to in the first sentence of the preceding paragraph, transfers, delivers or provides a deposit passbook, etc. to that person is also punished in the same manner as under that paragraph. 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, transfers, delivers or provides a deposit passbook, etc. for consideration.

A person who, as a business, commits an act constituting an offense under the preceding two paragraphs is punished by imprisonment for not more than five years or a fine of not more than 10,000,000 yen, or both.

A person who solicits another person to commit an act constituting an offense under paragraph (1) or (2), or induces another person to do so by advertisement or a similar method, is also punished in the same manner as under paragraph (1).

A person who, knowing that the other party has the purpose referred to in the first sentence of the preceding paragraph, provides information for use of high-value electronically transferable prepaid payment instruments to that person is also punished in the same manner as under that paragraph. The same applies to a person who, without a legitimate reason such as that it is carried out as an ordinary commercial transaction, provides information for use of high-value electronically transferable prepaid payment instruments for consideration.

A person who, as a business, commits an act constituting an offense under the preceding two paragraphs is punished by imprisonment for not more than five years or a fine of not more than 10,000,000 yen, or both.

A person who solicits another person to commit an act constituting an offense under paragraph (1) or (2), or induces another person to do so by advertisement or a similar method, is also punished in the same manner as under paragraph (1).

A person who, knowing that the other party has the purpose referred to in the first sentence of the preceding paragraph, transfers, delivers or provides an exchange transaction card, etc. to that person is also punished in the same manner as under that paragraph. The same applies to a person who, without a legitimate reason such as that it is carried out as an ordinary commercial transaction, transfers, delivers or provides an exchange transaction card, etc. for consideration.

A person who, as a business, commits an act constituting an offense under the preceding two paragraphs is punished by imprisonment for not more than five years or a fine of not more than 10,000,000 yen, or both.

A person who solicits another person to commit an act constituting an offense under paragraph (1) or (2), or induces another person to do so by advertisement or a similar method, is also punished in the same manner as under paragraph (1).

A person who, knowing that the other party has the purpose set forth in the first sentence of the preceding paragraph, provides that party with information for electronic payment instruments transactions is punished in the same manner as under that paragraph. A person who, without a legitimate reason such as that it is conducted as an ordinary commercial transaction, provides information for electronic payment instruments transactions for compensation is likewise punished.

A person who, as a business, commits an act constituting an offense under the preceding two paragraphs is punished by imprisonment for five years or less or a fine of 10 million yen or less, or both.

A person who solicits another person to commit an act constituting an offense under paragraph (1) or (2), or induces another person to do so by advertisement or any other similar method, is punished in the same manner as under paragraph (1).

A person who, knowing that the other party has the purpose set forth in the first sentence of the preceding paragraph, provides that party with information for use of electronic payment services is punished in the same manner as under that paragraph. A person who, without a legitimate reason such as that it is conducted as an ordinary commercial transaction, provides information for use of electronic payment services for compensation is likewise punished.

A person who, as a business, commits an act constituting an offense under the preceding two paragraphs is punished by imprisonment for five years or less or a fine of 10 million yen or less, or both.

A person who solicits another person to commit an act constituting an offense under paragraph (1) or (2), or induces another person to do so by advertisement or any other similar method, is punished in the same manner as under paragraph (1).

A person who, knowing that the other party has the purpose set forth in the first sentence of the preceding paragraph, provides that party with information for cryptoasset exchange is punished in the same manner as under that paragraph. A person who, without a legitimate reason such as that it is conducted as an ordinary commercial transaction, provides information for cryptoasset exchange for compensation is likewise punished.

A person who, as a business, commits an act constituting an offense under the preceding two paragraphs is punished by imprisonment for five years or less or a fine of 10 million yen or less, or both.

A person who solicits another person to commit an act constituting an offense under paragraph (1) or (2), or induces another person to do so by advertisement or any other similar method, is punished in the same manner as under paragraph (1).

A person who, without a legitimate reason such as that it is conducted as an ordinary commercial transaction or financial transaction, requests another person to carry out a property transfer using specified services for compensation, for the purpose of transferring property that the person or a third party manages or intends to manage, is punished by imprisonment for two years or less or a fine of three million yen or less, or both. A person who, without a legitimate reason such as that it is conducted as an ordinary commercial transaction or financial transaction, induces another person by advertisement or any other similar method to carry out a property transfer using specified services for compensation for that purpose is likewise punished.

A person who, without a legitimate reason such as that it is conducted as an ordinary commercial transaction or financial transaction, at the request of another person and knowing that the other person has the purpose set forth in the first sentence of the preceding paragraph, carries out a property transfer using specified services for compensation is punished by imprisonment for two years or less or a fine of three million yen or less, or both. A person who, without a legitimate reason such as that it is conducted as an ordinary commercial transaction or financial transaction, indicating that the person will undertake a property transfer using specified services, solicits another person to request the person to carry out a property transfer using specified services for compensation, or induces another person to do so by advertisement or any other similar method, is likewise punished.

A person who, as a business, commits an act constituting an offense under the first sentence of paragraph (1) or the first sentence of the preceding paragraph is punished by imprisonment for three years or less or a fine of five million yen or less, or both.

In paragraphs (1) and (2), "property transfer using specified services" means the following acts:

an act of transferring to a person other than oneself all or part of property equivalent to property received by using deposit contract services, etc.;

an act of promising to receive property by using deposit contract services, etc. and transferring to a person other than oneself all or part of property equivalent to that property.

If a person violates an order under the provisions of Article 18, the person who committed the violation is punished by imprisonment for two years or less or a fine of three million yen or less, or both.

In any of the following cases, the person who committed the violation is punished by imprisonment for one year or less or a fine of three million yen or less, or both:

if a person fails to submit a report or materials under the provisions of Article 15 or Article 19, paragraph (2), or submits a false report or materials;

if a person fails to answer questions under the provisions of Article 16, paragraph (1) or Article 19, paragraph (3), or gives a false answer, or refuses, obstructs or evades an inspection under those provisions.