Act on Prevention of Transfer of Criminal Proceeds

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.