Financial Instruments and Exchange Act

If a claim, etc. that is illegal property (meaning property other than real property and movables; the same applies in paragraph (1) of the following Article and Article 209-7) belongs to a person other than the accused (hereinafter referred to as a "third party" in this Article), and the third party is not allowed to participate in the proceedings of the case under public prosecution, a judicial decision for confiscation may not be made.

The provisions of the preceding paragraph also apply when property on which a superficies right, a mortgage or any other right of a third party exists is sought to be confiscated pursuant to the provisions of Article 198-2, paragraph (1) or Article 200-2, and the third party is not allowed to participate in the proceedings of the case under public prosecution.

If property on which a superficies right, a mortgage or any other right of a third party exists is to be confiscated, and the right is to be kept in existence pursuant to the provisions of paragraph (2) of the preceding Article, the court must pronounce to that effect simultaneously with the rendering of confiscation.

If a judicial decision for confiscation without the pronouncement referred to in the preceding paragraph becomes final and binding with regard to a right that is to be kept in existence pursuant to the provisions of paragraph (2) of the preceding Article, a person that holds the relevant right and was unable to claim the right in the proceedings of the case under public prosecution due to a reason unattributable to that person may, demand a judicial decision to the effect that the case falls under a case in which the right should be kept in existence.

If the judicial decision referred to in the preceding paragraph is made, compensation is made pursuant to the rules applicable to the compensation for confiscated property that has been disposed of specified in the Criminal Compensation Act (Act No. 1 of 1950).

With regard to the procedures concerning confiscation of property provided for in paragraphs (1) and (2), unless otherwise provided for in this Act, the provisions of the Act on Emergency Measures on Criminal Procedure to Confiscate Items Owned by Third Parties (Act No. 138 of 1963) apply mutatis mutandis.

A claim, etc. that has been confiscated with regard to the crime referred to in Article 197, paragraph (1), item (v) or (vi) or paragraph (2), Article 197-2, paragraph (1), item (xiii) or (xvi), or Article 200, item (xiv) must be disposed of by a public prosecutor.

If a judicial decision for confiscation of a claim that should be confiscated with regard to the crime referred to in Article 197, paragraph (1), item (v) or (vi) or paragraph (2), Article 197-2, paragraph (1), item (xiii) or (xvi), or Article 200, item (xiv) becomes final and binding, a public prosecutor must notify the debtor of the claim to that effect by sending an extract of the written judgment of the judicial decision for confiscation (or, if the written judgment is an electronic or magnetic record, a document or electronic or magnetic record that states or records part of the particulars recorded in that written judgment and for which it has been certified that its content is identical to the particulars recorded in that written judgment); provided, however, that notification by electronic or magnetic record may not be made if the person receiving it has an objection.

In the case of commissioning a related organization to make registration, etc. of transfer of right based on a judicial decision for confiscation of property for which transfer of right requires registration or recording (hereinafter referred to as "registration, etc." in this Article) with regard to the crime referred to in Article 197, paragraph (1), item (v) or (vi) or paragraph (2), Article 197-2, paragraph (1), item (xiii) or (xvi), or Article 200, item (xiv), if there is a registration, etc. related to restriction on a disposition that has ceased to be effective as a result of the confiscation or a registration, etc. related to acquisition of right that has been extinguished as a result of the confiscation, or if there is a registration, etc. related to a preservation order for confiscation or a collateral preservation order under the provisions of Chapter IV, Section 1 of the Act on Punishment of Organized Crimes and Control of Proceeds of Crime (Act No. 136 of 1999), a deletion of the registration, etc. must also be commissioned.

With regard to the details of compensation under the Criminal Compensation Act for execution of the confiscation of a claim, etc. to be confiscated with regard to the crime referred to in Article 197, paragraph (1), item (v) or (vi) or paragraph (2), Article 197-2, paragraph (1), item (xiii) or (xvi), or Article 200, item (xiv), the provisions of Article 4, paragraph (6) of that Act apply mutatis mutandis.