Financial Instruments and Exchange Act

If a person violates, without a justifiable ground, an order to provide electronic or magnetic records under the provisions of Article 211, paragraph (1) or an order under the provisions of paragraph (3) of that Article, the person who committed the violation is subject to punishment by imprisonment for not more than one year or a fine of not more than three million yen.

the provisions of Article 198, paragraph (1), item (v); Article 198-6, item (viii), item (ix), item (xii), item (xiii), or item (xv); Article 199-2; Article 200, item (xii)-11, item (xv)-2, item (xvii), item (xviii)-2, or item (xix); Article 201 (excluding item (i), item (ii), item (iv), item (vi), and items (ix) through (xi)); Articles 204-2 through 205-2-2; Article 205-2-3, paragraph (1); or paragraph (1) of the preceding Article:the fine prescribed in the relevant Articles.

If it is necessary for investigating a criminal case, a Commission official may conduct an inspection; search the body of a suspect or witness in a criminal case, an object of a suspect or witness in a criminal case, or a residence or any other place associated with a suspect or witness in a criminal case; seize an article of evidence or a thing the official considers to be an object that should be confiscated; or conduct a seizure withissue an order to produce a copy ofprovide electronic or magnetic records (meaning ordering the keeper of anan order to provide necessary electronic or magnetic record or a person with the authority to access an electronic or magnetic record to copy the necessary electronic or magnetic record onto a recording medium,records to the persons set forth in the following items by the methods specified in those items (limited to an order given by designating the electronic or print out that record, magnetic records to be provided and seizing that recording mediumthe method of provision); hereinafter the same applies in this Chapter) through a warrant issued in advance by the judge of the district court or summary court that has jurisdiction over the locality of the Commission; provided, however, that a Commission official may search the body of a witness, an object associated with a witness, or a residence or any other place associated with a witness only if there are sufficient circumstances for the official to discern the existence of an object to be seized.

a person that keeps electronic or magnetic records: the method set forth in (a) or (b) below;

a method of causing an electronic or magnetic record to be recorded on or transferred to a recording medium and causing that recording medium to be submitted;

a method of causing an electronic or magnetic record to be recorded on or transferred to a recording medium under the control of the person issuing the order, through telecommunication lines;

a person with the authority to use an electronic or magnetic record (excluding a person set forth in the preceding item): the method set forth in (a) or (b) of that item (limited to a method by which an electronic or magnetic record is recorded on a recording medium).

In the cases referred to in the preceding two paragraphs, in cases of urgency, a Commission official may make a disposition referredIf a Commission official issues an order to provide electronic or magnetic records and it is necessary to in the preceding two paragraphsdo so, the official may, with a warrant issued in advance bythe permission of the judge of the district court or the summary court that has jurisdiction over the locality of the Commission, order the person who is to record receive that order to provide electronic or print out magnetic records, specifying a period not exceeding one year, not to disclose without good reason the object or place fact of having received that order to be inspected, provide electronic or magnetic records, or the body, objectfact of having provided, or place to be searchedhaving failed to provide, the object electronic or magnetic records ordered to be seized, or the provided by that order to provide electronic or magnetic recordrecords.

In requesting a warrantthe cases referred to in paragraph (1) or the preceding paragraph (hereinafter the preceding three paragraphs, in cases of urgency, a Commission official may make a disposition referred to as a "in the preceding three paragraphs with a warrant" issued in this Chapter, excluding Article 222-3, paragraphs (4) and (5)), a Commission official must submit materials that confirm the existence of a criminal caseadvance by the judge of the district court or the summary court that has jurisdiction over the locality of the object or place to be inspected, the body, object, or place to be searched, the object to be seized, or the person who is to provide the electronic or magnetic record.

If a request under the preceding paragraph is made, the judge of the district court or the summary court must deliverIn requesting a warrant to a Commission official which states the name of the suspectreferred to in the criminal case (for a corporation, the name of the corporation), the charged offense, the object paragraph (1) or place to be inspected, the person, object, or place to be searched, the object to be seized, or the electronic or magnetic record to be recorded or printed out and the person who ispreceding paragraph (hereinafter referred to record or print out the record, and the government position and name of the requester, the valid period, the fact that after the valid period ends, the warrant may not be executed andas a "warrant" in this Chapter, excluding Article 222-4, paragraphs (4) through (8)), a Commission official must be returned, the date of issuance andsubmit materials that confirm the nameexistence of the court, and bears their name and seala criminal case.

In the case referred to in paragraph (2), in addition to the particulars prescribedA warrant may be in the preceding paragraph, the warrant must state the scopeform of the recording medium that is connected via telecommunication lines to the computer to be seized, and whose electronic or magnetic records are to be copiedan electronic or magnetic record, as well as in writing, as provided by the Rules of the Supreme Court.

A If a Commission official may deliver a warrant to another Commission official has issued an order under the provisions of paragraph (3) and have that official execute the inspection, search, seizure, or seizure with an order to produce a copyit has ceased to be necessary, the official must rescind it, on the official's own initiative or at the request of recordsthe person who received that order.

If a request under paragraph (5) is made and the judge of the district court or the summary court issues a warrant, that judge must issue to a Commission official a warrant that states or records the name of the suspect in the criminal case (for a corporation, the name of the corporation), the charged offense, the object or place to be inspected, the person, object, or place to be searched, the object to be seized, or the electronic or magnetic record to be provided, the person who is to provide it and the method of provision, the government position and name of the requester, the particulars specified in each of the following items in accordance with the category of cases set forth in that item, the date of issuance, the name of the court, and other particulars specified by the Rules of the Supreme Court.

If the warrant is in writing: the valid period, and the fact that after the valid period ends, the warrant may not be executed or an order to provide electronic or magnetic records issued and must be returned;

If the warrant is in the form of an electronic or magnetic record: the valid period, and the fact that after the valid period ends, the warrant may not be executed or an order to provide electronic or magnetic records issued and the Commission official must take measures specified by the Rules of the Supreme Court such as erasing the warrant from the computer used by the Commission official, and must submit to that judge an electronic or magnetic record recording the fact that those measures have been taken.

In the case referred to in paragraph (2), in addition to the particulars prescribed in the preceding paragraph, the warrant must state or record the scope of the recording medium that is connected via telecommunication lines to the computer to be seized, and whose electronic or magnetic records are to be copied.

A warrant must be one for which the measures specified in each of the following items have been taken in accordance with the category of cases set forth in that item.

If the warrant is in writing: the judge affixes the judge's name and seal;

If the warrant is in the form of an electronic or magnetic record: the judge takes a measure specified by the Rules of the Supreme Court in place of affixing a name and seal (limited to one by which, when the particulars recorded in the warrant are displayed on the screen of a computer, on paper, or on another thing, the judge's name is also displayed).

When the judge of the district court or the summary court grants the permission under paragraph (3), the judge must state or record in the warrant that fact and the period for which the person is ordered not to disclose under the provisions of that paragraph.

A Commission official may provide a warrant to another Commission official and have that official execute the inspection, search, seizure, or order to provide electronic or magnetic records.

If it is necessary for investigating a criminal case, a Commission official may seize a document concerning a postal item, correspondence item, or telegraphic communication sent by or addressed to a suspect in a criminal case, which, based on the provisions of laws and regulations, is stored by or in the possession of a person handling communications, by receiving delivery ofbeing issued a warrant.

A Commission official may seize a document concerning a postal item, correspondence item, or telegraphic communication not falling under the preceding paragraph, which, based on the provisions of laws and regulations, is stored by or in the possession of a person handling communications only if there are sufficient circumstances to suppose that the document is related to a criminal case, by being issued a warrant.

If it is necessary for carrying out the seizure or the seizure with having electronic or magnetic records provided by an order to produce a copy ofprovide electronic or magnetic records, a Commission official may specify the necessary electronic or magnetic records from among the electronic or magnetic records of the sender, recipient, date and time, and other communications history, for telecommunications that are recorded in the course of business, and request in writing or by electronic or magnetic record that a person engaged in the business of making equipment to be used for telecommunication available for other persons' communications or a person that has established equipment which is used for telecommunication and that is capable of intermediating the communications of unspecified or many persons for their own business not to erase the specified electronic or magnetic records during a fixed period of no longer than 30 days. In such a case, if the Commission official comes to find that it is no longer necessary to carry out the seizure orof the seizure with an order electronic or magnetic records subject to produce a copy of that request or to have those electronic or magnetic records concerning thoseprovided by an order to provide electronic or magnetic records, the Commission official must withdraw that request.

(Restriction on the Execution of Inspection, Search, or Seizure at Night), etc.

It is prohibited for an inspection, a search, a seizure, or a seizure with an order to produce a copy of records to be made during the period between sunset and sunrise unless the warrant indicatesstates or records that this may be executed at night.

An inspection, a search, a seizure, or a seizure with an order to produce a copy of records that was initiated before sunset may be continued after sunset, if this is found to be necessary.

Notwithstanding the provisions of paragraph (2) of the following Article, during the period between sunset and sunrise, a person may not enter a person's residence, or a mansion, building, or vessel that a person watches over, in order to take the measures under paragraph (1) of that Article in the case of issuing an order to provide electronic or magnetic records, unless the warrant (limited to one in which the places to be entered under paragraph (3) of that Article are stated or recorded) states or records that the presentation of the warrant may be made even at night.

(Presentation of a Warrant), etc.

The With regard to the warrant for an inspection, a search, a seizure, or a seizure with an order to produce a copy ofprovide electronic or magnetic records , the measures specified in each of the following items must be presented totaken toward the person subject to those dispositions, in accordance with the category of cases set forth in that item.

If the warrant is in writing: the warrant is shown;

If the warrant is an electronic or magnetic record: the particulars recorded in the warrant and the name of the judge of the district court or summary court relating to the measure under Article 211, paragraph (10) (limited to the part pertaining to item (ii)) are shown, in accordance with Cabinet Office Order, by displaying them on the screen of a computer, on paper, or on another thing, or by having the person subject to the disposition display them on the screen of a computer used by that person, on paper, or on another thing.

If a Commission official issues an order to provide electronic or magnetic records and it is necessary for taking the measures under the preceding paragraph, the official may, with the permission of the judge of the district court or summary court, enter a person's residence, or a mansion, building, or vessel that a person watches over.

When granting the permission under the preceding paragraph, the judge of the district court or summary court must state or record the place to be entered in the warrant.

With regard to taking the measures under paragraph (1) in the case where a Commission official issues an order to provide electronic or magnetic records (limited to the case where the permission under paragraph (2) has been obtained), the official may make the following dispositions and other necessary dispositions.

Releasing a lock;

Prohibiting any person from entering or exiting the place where those measures are taken without the permission of a Commission official;

Having a person who does not comply with a disposition under this paragraph (limited to the part pertaining to the preceding item) leave, or placing a guard over that person until those measures have been completed.

When carrying out questioning, examination, retention, inspection, search, seizure, or seizure with an order to produce a copy ofprovide electronic or magnetic records pursuant to the provisions of this Chapter, a Commission official must carry an identification card and present it if requested by a person concerned.

If it is necessary to do so in order to carry out an inspection, a search, qa seizure, or a seizure with an order to produce a copy of records, a Commission official may release a lock, open a seal, or make other necessary dispositions.

The dispositions referred to in the preceding paragraph may also be made with respect to retained objects, seized objects, or objects seized with a recording medium submitted pursuant to an order to produce a copy ofprovide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 211, paragraph (1), item (i), (a)).

If a Commission official has had electronic or magnetic records provided pursuant to an order to provide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 211, paragraph (1), item (i), (b)), the official may take measures to confirm the content of those electronic or magnetic records and make other necessary dispositions.

While carrying out questioning, examination, retention, inspection, search, seizure, or seizure with an order to produce a copy of records pursuant to the provisions of this Chapter, a Commission official may prohibit any person from entering or exiting the place without permission.

When carrying out an inspection, a search, a seizure, or a seizure with an order to produce a copy of records at a person's residence, or at a mansion, building, or other place that a person watches over, a Commission official must have the owner or manager (or a representative, agent, or other person that may act on the owner's or manager's behalf) or the employee or co-habiting adult relative of the owner or manager, present at the site.

A Commission official may request the assistance of police officers if this is necessary at the time the Commission official carries out an inspection, a search, a seizure, or a seizure with an order to produce a copy ofprovide electronic or magnetic records.

Upon carrying out questioning pursuant to the provisions of this Chapter, a Commission official must prepare a record of the questioning (including one prepared as an electronic or magnetic record; the same applies hereinafter in this Article), have the person the official questioned inspect what is specified in each of the recordfollowing items in accordance with the category of cases set forth in that item, or read it aloud to the person, ask the person whether it contains any errors, and if the person makes a proposal for an addition to, deletion from, or alteration of the record, enter the person's statement in thestate or record, and sign and seal it, as well as have the person sign and seal it; provided, however, that if the person that was questioned will not or cannot sign and sealperson's statement in the record, it is sufficient to append a note of this.

If the record is prepared in writing: the record;

If the record is prepared as an electronic or magnetic record: a display of the content of the record.

Upon carrying out an examination or retention pursuantWith regard to the record referred to the provisions of this Chapterin the preceding paragraph, a Commission official must prepare a record of this, and sign and seal take, together with the person questioned, the measure specified in each of the recordfollowing items in accordance with the category of cases set forth in that item; provided, however, that if the person questioned does not take that measure or cannot take it, it is sufficient to append a note of this.

If the record is prepared in writing: signing and sealing the record;

If the record is prepared as an electronic or magnetic record: taking a measure specified by Cabinet Office Order in place of signing and sealing the record.

Upon carrying out inspection, search, seizurean examination, retention, or seizure with a recording order order to provide electronic or magnetic records pursuant to the provisions of this Chapter, a Commission official must prepare a record of this, show the record to a person that was present, and sign and seal it, as well as have that person sign and seal it; provided, however, that iftake the person that was present will not or cannot sign and sealmeasure specified in each of the following items in accordance with the record, it is sufficient to append a note of thiscategory of cases set forth in that item.

If the record is prepared in writing: signing and sealing the record;

If the record is prepared as an electronic or magnetic record: taking a measure specified by Cabinet Office Order in place of signing and sealing the record.

Upon carrying out an inspection, search, or seizure pursuant to the provisions of this Chapter, a Commission official must prepare a record of this, and show a person who was present what is specified in each of the following items in accordance with the category of cases set forth in that item.

If the record is prepared in writing: the record;

If the record is prepared as an electronic or magnetic record: a display of the content of the record.

With regard to the record referred to in the preceding paragraph, a Commission official must take, together with the person who was present, the measure specified in each of the following items in accordance with the category of cases set forth in that item; provided, however, that if the person who was present does not take that measure or cannot take it, it is sufficient to append a note of this.

If the record is prepared in writing: signing and sealing the record;

If the record is prepared as an electronic or magnetic record: taking a measure specified by Cabinet Office Order in place of signing and sealing the record.

Upon carrying out a retention, or seizure, or seizure with upon having a recording medium submitted pursuant to an order to produce a copy ofprovide electronic or magnetic records, a (limited to one ordering provision by the method set forth in Article 211, paragraph (1), item (i), (a)), a Commission official must prepare an inventory and deliver a certified copy of this in writing or as an electronic or magnetic record and provide it to the owner, possessor, or keeper of the retained object, seized object, or object seized with an order to produce a copy of recordsobject (including a person rendered a disposition under the provisions of Article 211-4), or the person who received that order to provide electronic or magnetic records, or to any other person that may act on their behalf.

In the case where electronic or magnetic records have been provided pursuant to an order to provide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 211, paragraph (1), item (i), (b)), an inventory must be prepared in writing or as an electronic or magnetic record and provided to the person who received that order to provide electronic or magnetic records or to any other person that may act on that person's behalf.

Notwithstanding the provisions of the preceding two paragraphs, an inventory prepared as an electronic or magnetic record may not be provided if the person who is to receive it objects.

A Commission official may collect a storage certificate and have the owner or possessor of a retained object, seized object, or object seized with an order to produce a copy of recordsobject that is inconvenient to transport or store, or any other person that the Commission official finds to be appropriate, store that object, with the consent of the person in question.

If it becomes unnecessary to keep a retained objectarticle, seized objectarticle, or object seized with recording medium submitted pursuant to an order to produce a copy ofprovide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 211, paragraph (1), item (i), (a)), a Commission official must return it to the person to whom it should be returned.

If the Commission is unable to return a retained objectarticle, seized objectarticle, or object seized with an order to produce a copy of recordsrecording medium referred to in the preceding paragraph because the address or residence of the person to whom it should be returned is unknown or for any other such reason, the Commission must issue public notice of this.

If no request is filed for the return of the retained objectarticle, seized objectarticle, or object seized with an order to produce a copy of recordsrecording medium to which the public notice under the provisions of the preceding paragraph concerns after six months have elapsed since the day of the public notice, the object veststhose articles vest in the national treasury.

If it becomes unnecessary to keep a recording medium that was seized after transferring or having a person transfer electronic or magnetic records pursuant toset forth in each of the provisions of Article 211-4following items, and the person subject to the seizurespecified in that item is a different person from the owner, possessor, or keeper of the recording medium, a Commission official must deliver the recording medium to the person subject to the seizurespecified in that item or allow the person to copy the electronic or magnetic records.

a recording medium that was seized after transferring or having a person transfer electronic or magnetic records pursuant to the provisions of Article 211-4: the person subject to the seizure;

a recording medium submitted pursuant to an order to provide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 211, paragraph (1), item (i), (a) (limited to a method by which electronic or magnetic records are transferred to a recording medium); the same applies hereinafter in this item): the person who received an order to provide electronic or magnetic records.

If the reason for not having the person who received that order to provide electronic or magnetic records store electronic or magnetic records transferred pursuant to an order to provide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 211, paragraph (1), item (i), (b) (limited to a method by which electronic or magnetic records are transferred to a recording medium)) has ceased to exist, a Commission official must, at the request of that person or ex officio, allow that person to copy the electronic or magnetic records.

The provisions of Article 222, paragraph (2) apply mutatis mutandis to copying under the provisions of the preceding paragraph.

If no request for the copying referred to in the preceding paragraph is made after six months have elapsed since the day of the public notice under the provisions of Article 222, paragraph (2) as applied mutatis mutandis pursuant to the preceding paragraph, it is not necessary to allow that copying.

If it is necessary for investigating a criminal case, a Commission official may commissionCommission a person with relevant expertise to present an expert opinion or commission that person to perform interpretation or translation services, with regard to a retained object, seized object, or object seized with recording medium submitted or electronic or magnetic records provided pursuant to an order to produce a copy ofprovide electronic or magnetic records (referred to as an "article" in the following paragraph and paragraph (6)), or Commission that person to perform interpretation or translation services.

A person that has received a request for an expert opinion under the provisions of the preceding paragraph (referred to as an "expert" in paragraphs (46) and (58)) may destroy the objectarticle for which an expert opinion was requested, with the permission of the judge of the district court or summary court that has jurisdiction over the locality of the Commission.

If the request referred to in the preceding paragraph has been filedmade and the judge of the district court or summary court finds the request to be reasonable, the judge must issue a warrant to a Commission official which states the name of the suspect in the criminal case, the charged offense, and the object to be destroyed; states the name of the expert; states the government position and name of the requester; states the valid period; indicates that after the valid period ends, the warrant may not be executed and must be returned; states the date of issuance and the name of the court; and bears the judge's name and seal.

An expert must show theA warrant referred to in the preceding paragraph to a person subject to the disposition referred to may be in the form of an electronic or magnetic record, as well as in paragraph (2)writing, as provided by the Rules of the Supreme Court.

A warrant referred to in paragraph (4) must state or record the name of the suspect in the criminal case (for a corporation, the name of the corporation), the charged offense, the article to be destroyed, the name of the expert, the government position and name of the requester, the date of issuance, the name of the court, and other particulars specified by the Rules of the Supreme Court.

A warrant referred to in paragraph (4) must be one for which the measures specified in each of the following items have been taken in accordance with the category of cases set forth in that item.

If the warrant is in writing: the judge affixes the judge's name and seal;

If the warrant is in the form of an electronic or magnetic record: the judge takes a measure specified by the Rules of the Supreme Court in place of affixing a name and seal (limited to one by which, when the particulars recorded in the warrant are displayed on the screen of a computer, on paper, or on another thing, the judge's name is also displayed).

An expert must take, with respect to the person subject to the disposition under paragraph (2), the measure specified in each of the following items in accordance with the category of cases set forth in that item.

If the warrant referred to in paragraph (4) is in writing: showing the warrant referred to in that paragraph;

If the warrant referred to in paragraph (4) is an electronic or magnetic record: showing, in accordance with Cabinet Office Order, the particulars recorded in the warrant referred to in that paragraph and the name of that judge relating to the measure under the provisions of the preceding paragraph (limited to the part pertaining to item (ii)), by displaying them on the screen of a computer, on paper, or on another thing.

A person designated by the Director-General of a Local Finance Bureau or the Director-General of a Local Finance Branch Bureau pursuant to the provisions of the preceding paragraph (hereinafter referred to as the "official of a Local Finance Bureau, etc." in this Chapter) is deemed to be a Commission official, and the provisions of Article 210 through the preceding Article apply. In such a case, the term "of the Commission" in Article 211, paragraphparagraphs (1) and (3) is deemed to be replaced with "of the Local Finance Bureau or Local Finance Branch Bureau to which the official belongs", the term "Commission" in Article 222, paragraph (2) is deemed to be replaced with "the Director-General of a Local Finance Bureau or the Director-General of a Local Finance Branch Bureau", the term "Commission" in Article 222-3222-4, paragraph (2) is deemed to be replaced with "the Local Finance Bureau or the Local Finance Branch Bureau to which the official of a Local Finance Bureau, etc. prescribed in Article 224, paragraph (2) who is deemed to be a Commission official referred to in the preceding paragraph pursuant to the provisions of Article 224, paragraph (2) belongs", and the term "to the Commission" in the preceding Article is deemed to be replaced with "to the Director-General of a Local Finance Bureau or the Director-General of a Local Finance Branch Bureau".

If the Commission is convinced that a criminal offense has taken place based on the investigation of a criminal case, it must file an accusation, and if there are any retained objects, seized objects, or objects seized with recording media submitted or electronic or magnetic records provided pursuant to an order to produce a copy ofprovide electronic or magnetic records, it must hand over the objectsthem over together with the retention inventory, the seizure inventory, or the inventory of seizure with the recording media submitted or electronic or magnetic records provided pursuant to an order to produce a copy ofprovide electronic or magnetic records.

If a retained object, seized object, or object seized with an order to produce a copy of recordsobject referred to in the preceding paragraph is related to the storage under the provisions of Article 221, the Commission must use the storage certificate referred to in that Article to keephand it in custodyover, as well as notify the keeper referred to in that Article to that effect.

If a retained object, seized object, or object seized with recording medium submitted pursuant to an order to produce a copy ofprovide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 211, paragraph (1), item (i), (a)) is handed over pursuant to the provisions of the preceding two paragraphs, the object is deemed to have been seized pursuant to the provisions of the Code of Criminal Procedure (Act No. 131 of 1948).

If electronic or magnetic records provided pursuant to an order to provide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 211, paragraph (1), item (i), (b)) are handed over pursuant to the provisions of paragraph (1), those electronic or magnetic records are deemed to have been provided pursuant to an order to provide electronic or magnetic records prescribed in Article 102-2, paragraph (1) of the Code of Criminal Procedure (limited to one ordering provision by the method set forth in item (i), (b) of that paragraph) that a public prosecutor issues pursuant to the provisions of that Code.