Foreign Exchange and Foreign Trade Act

If the Minister of Finance finds that a bank or other prescribed financial institution is conducting or is likely to conduct a funds transfer transaction (excluding those stated in Article 55-9-2, paragraph (2), item (iii)), in violation of the provisions of the preceding Article, involving a payment being made or received by its customer, the minister may order it to take measures to ensure that it properly implements the confirmations referred to in the preceding Article.

If the Minister of Finance finds it to be necessary to do so when issuing an order to a bank or other prescribed financial institution pursuant to the provisions of the preceding paragraph, the minister may order the bank or other prescribed financial institution to fully or partially suspend its business involving a foreign exchange transaction or restrict the content of its business, until the measures referred to in that paragraph are taken.

The provisions of the preceding two Articles apply mutatis mutandis if a funds transfer service provider carries out a funds transfer transaction involving a payment that is made or received by its customer.

The provisions of Article 17 and Article 17-2 apply mutatis mutandis where an electronic payment instruments service provider, etc. conducts a transfer of electronic payment instruments or any other prescribed action involving the making or receiving of a payment by its customer; in this case, the phrase "with a customer" in Article 17 is deemed to be replaced with "of a customer", the phrase "funds transfer transaction" in Article 17 is deemed to be replaced with "transfer of electronic payment instruments or any other prescribed action", the phrase "funds transfer transaction" in Article 17-2, paragraph (1) is deemed to be replaced with "transfer of electronic payment instruments or any other prescribed action", and the phrase "foreign exchange transaction" in paragraph (2) of that Article is deemed to be replaced with "transfer of electronic payment instruments or any other prescribed action".

In the case an electronic payment instruments service provider, etc. conducts a transfer of electronic payment instruments or any other prescribed action involving a payment that is made or received by its customer, the provisions of the preceding three Articles do not apply to a bank or other prescribed financial institution or a funds transfer service provider, if the electronic payment instruments service provider, etc. transfers an electronic payment instrument issued by the bank or other prescribed financial institution or by the funds transfer service provider, or if the electronic payment instruments service provider, etc. conducts one of the actions stated in the right columns of rows 1 through 4 of the table in Article 16-2 involving making or receiving of a payment of its customer (excluding transfer of electronic payment instrument; hereinafter the same applies in Article 18-6, paragraph (2)) upon being entrusted by the bank or any other prescribed financial institution or by the funds transfer service provider.

When carrying out a funds transfer transaction involving a payment that a customer as stated in one of the following items makes from Japan to a foreign country or a funds transfer transaction involving such a customer making or receiving a payment to or from a non-resident (unless that customer is a non-resident) (excluding a funds transfer transaction that involves the person in question making a small payment or making or receiving a small payment that Cabinet Order prescribes; hereinafter referred to as a "specified funds transfer transaction"), a bank or other prescribed financial institution must verify the information stated in that item (hereinafter referred to as "identifying information") for that customer by having the customer present a driver's license or by any other means that Ministry of Finance Order prescribes (hereinafter referred to as "verifying a person's identity"):

a natural person:the person's name, domicile or residence (or the information prescribed by Ministry of Finance Order, if the person is a foreign national prescribed by Cabinet Order who has neither a domicile nor residence in Japan), and date of birth; and

a corporation:the corporation's name and the location of its principal office.

When a bank or other prescribed financial institution verifies the identity of a customer, if a company's representative is carrying out a specified funds transfer transaction on behalf of that company or in any other such case in which the natural person actually responsible for the specified funds transfer transaction with the bank or other prescribed financial institution is not the customer itself (excluding the cases prescribed in the following paragraph), the bank or other prescribed financial institution must verify the identity of the natural person responsible for the specified funds transfer transaction (referred to as the "representative or other responsible party" in this Article and the following Article), in addition to verifying the identity of the customer.

If a customer is the national government, a local government, an association or foundation without legal personality, or any other person prescribed by Cabinet Order, the natural person who is actually responsible for conducting a specified funds transfer transaction with the bank or other prescribed financial institution on its behalf is deemed to be the customer, and the provisions of paragraph (1) apply.

It is prohibited for a customer (including a natural person deemed to be a customer pursuant to the provisions of the preceding paragraph; hereinafter the same applies in this paragraph through Article 22-3) or a representative or other responsible party to disguise their identifying information from the bank or other prescribed financial institution when that bank or other prescribed financial institution is verifying their identity.

If a customer or a representative or other responsible party does not comply with an identity verification when conducting a specified funds transfer transaction, a bank or other prescribed financial institution may refuse to perform its obligation in the specified funds transfer transaction until the customer or the representative or other responsible party complies with this.

Once a bank or other prescribed financial institution has verified a person's identity, it must immediately prepare a record of the identifying information and other information that Ministry of Finance Order prescribes as information related to the verification of a person's identity (referred to as an "identity verification record" in the following paragraph) by the means prescribed by Ministry of Finance Order.

A bank or other prescribed financial institution must preserve an identity verification record for seven years after the day on which the specified funds transfer transaction is completed or any other such date prescribed by Ministry of Finance Order.

If the Minister of Finance finds that a bank or other prescribed financial institution has violated the provisions of Article 18, paragraphs (1) through (3) or the provisions of paragraph (1) or (2) of the preceding Article in connection with a specified funds transfer transaction, the Minister may order it to take the necessary measures to rectify the violation.

The provisions of Article 18 through the preceding Article apply mutatis mutandis if a funds transfer service provider conducts a specified funds transfer transaction.

The provisions of Article 18 through Article 18-4 apply mutatis mutandis where an electronic payment instruments service provider, etc. conducts a transfer of electronic payment instruments or any other prescribed action involving the making or receiving of a payment by its customer; in this case, the phrase "with a customer" in Article 18, paragraph (1) is deemed to be replaced with "of a customer", the phrase "funds transfer transaction involving" in that paragraph is deemed to be replaced with "transfer of electronic payment instruments or any other prescribed action involving", the phrase "specified funds transfer transaction" in that paragraph is deemed to be replaced with "electronic payment instruments transfer transaction", and the phrase "specified funds transfer transaction" in paragraphs (2) and (3) of that Article, Article 18-2, Article 18-3, paragraph (2), and Article 18-4 is deemed to be replaced with "electronic payment instruments transfer transaction".

In the case an electronic payment instruments service provider, etc. conducts a transfer of electronic payment instruments or any other prescribed action involving a payment that is made or received by its customer, the provisions of Article 18 through the preceding Article do not apply to a bank or other prescribed financial institution or a funds transfer service provider, if the electronic payment instruments service provider, etc. transfers an electronic payment instrument issued by the bank or other prescribed financial institution or by the funds transfer service provider, or if the electronic payment instruments service provider, etc. conducts one of the actions stated in the right columns of rows 1 through 4 of the table in Article 16-2 pertaining to making or receiving of a payment of its customers upon being entrusted by the bank or other prescribed financial institution or by the funds transfer service provider.

If the Minister of Finance finds it to be necessary to do so in order to ensure the reliable implementation of the provisions of this Act or of an Order based on this Act, the minister, pursuant to the provisions of Cabinet Order, may make it obligatory for residents or non-residents seeking to import or export a means of payment (including a voucher or other such object in which a means of payment is entered as stated in Article 6, paragraph (1), item (vii), (c)) or securities, to get permission to do so.

If the Minister of Finance finds it to be necessary to do so in order to ensure the reliable implementation of the provisions of this Act or of an Order based on this Act or finds it to be particularly necessary to do so in order to maintain a balance of payments equilibrium or currency stability, the minister, pursuant to the provisions of Cabinet Order, may make it obligatory for residents or non-residents seeking to import or export precious metals to get permission to do so.

If a resident or non-resident seeks to import or export a means of payment prescribed in paragraph (1) or a security or precious metal, the resident or non-resident, pursuant to the provisions of Cabinet Order, must file a notification of the substance of the import or export, its timing, and other information that Cabinet Order prescribes with the Minister of Finance, unless that resident or non-resident has gotten the permission of the Minister of Finance to import or export that means of payment, security, or precious metal pursuant to the provisions of an Order based on one of the preceding two paragraphs or in any other case prescribed by Cabinet Order.