Payment Services Act

The term "issuer of prepaid payment instruments" as used in this Act means an issuer of prepaid payment instruments for its own business as prescribed in Article 3, paragraph (6) and an issuer of prepaid payment instruments for third-party business specified in Article 3, paragraph (7).

The term "funds transfer services" as used in this Act means funds transfer transactions carried out by persons other than deposit-taking institutions in the course of trade.

The term "funds transfer service provider" as used in this Act means a person who has been registered referred to in Article 37.

The term "foreign funds transfer service provider" as used in this Act means a person who has been registered and carries out funds transfer transactions in the course of trade in a foreign state, whose registration type is same as the one referred to in Article 37 pursuant to the provisions of laws and regulations of that foreign state comparable to this Act (including other administrative dispositions similar to that registration).

The term "electronic payment instrument" as used in this Act means any of the following:

property value (limited to currency-denominated assets recorded on an electronic device or any other object by electronic means, and excluding securities, the electronically recorded monetary claims prescribed in Article 2, paragraph (1) of the Electronically Recorded Monetary Claims Act (Act No. 102 of 2007), the prepaid payment instruments prescribed in Article 3, paragraph (1), and assets specified by Cabinet Office Order as being similar to these (excluding those specified by Cabinet Office Order in consideration of transferability and other factors); the same applies in the following item) which can be used in relation to unspecified persons for the purpose of paying consideration for the purchase or leasing of goods, etc. or the receipt of provision of services and can also be purchased from and sold to unspecified persons acting as counterparties, and which can be transferred by using an electronic data processing system (excluding those falling under the category set forth in item (iii)); and

property value which can be mutually exchanged with what is set forth in the preceding item with unspecified persons acting as counterparties, and which can be transferred by using an electronic data processing system (excluding those falling under the category set forth in the following item);

specified beneficial interest in a trust; and

anything specified by Cabinet Office Order as being equivalent to what is set forth in the preceding three items.

The term "goods, etc." as used in this Act means goods and other property value (excluding the Japanese currency and foreign currencies).

The term "currency-denominated assets" as used in this Act means assets which are denominated in the Japanese currency or a foreign currency, or for which performance of obligations, refund, or anything equivalent thereto (hereinafter referred to as "performance of obligations, etc." in this paragraph) is supposed to be made in the Japanese currency or a foreign currency. In this case, assets for which performance of obligations, etc. is supposed to be made by means of currency-denominated assets are deemed to be currency-denominated assets.

The term "securities" as used in this Act means the securities prescribed in Article 2, paragraph (1) of the Financial Instruments and Exchange Act (Act No. 25 of 1948) or rights that are deemed to be securities pursuant to the provisions of paragraph (2) of that Article (excluding those falling under the category of electronically recorded monetary claims prescribed in Article 2, paragraph (1) of the Electronically Recorded Monetary Claims Act).

The term "specified trust beneficial interest" as used in this Act means a beneficial interest in a money trust (limited to cases where it is indicated on a property value (limited to one that is recorded on an electronic device or any other object by electronic means) which can be transferred by using an electronic data processing system), for which the ratio of the amount managed by means of deposits or savings to the total amount of money accepted by the trustee under a trust agreement is the ratio specified by Cabinet Office Order or more, for which the amount of that total amount of money other than the amount managed by means of those deposits or savings is invested by holding national government bond certificates specified by Cabinet Office Order or other bond certificates specified by Cabinet Office Order (including transfer bonds prescribed in Article 278, paragraph (1) of the Act on Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001)), and which satisfies other requirements specified by Cabinet Office Order.

The term "electronic payment instruments services" as used in this Act means carrying out any of the following acts in the course of trade, the term "exchange of electronic payment instruments, etc." as used in this Act means the act set forth in item (i) or (ii), and the term "management of electronic payment instruments" as used in this Act means the act set forth in item (iii):

purchase and sale of an electronic payment instrument or exchange with another electronic payment instrument;

intermediary, brokerage or agency services for the act set forth in the preceding item;

management of electronic payment instruments on behalf of another person (excluding that specified by Cabinet Office Order as being less likely to weaken the protection of users in consideration of their content and other related factors);

an act, as entrusted by a funds transfer service provider, of entering into an agreement with a user (limited to a person that has concluded a contract with the funds transfer service provider under which funds transfer transactions are carried out on an ongoing or recurring basis) to carry out any of the following by means of using an electronic data processing system, and increasing or decreasing the amount of claims pertaining to obligations relating to funds transfer transactions based on the agreement, on behalf of the funds transfer service provider:

transferring funds based on the contract, and decreasing the amount of claims pertaining to obligations relating to funds transfer transactions by an amount equivalent to the amount of the transferred funds; or

increasing the amount of claims pertaining to obligations relating to funds transfer transactions by an amount equivalent to the amount of funds received through a funds transfer transaction.

The term "electronic payment instruments-related business" as used in this Act means exchange of electronic payment instruments, etc. or management of electronic payment instruments.

The term "electronic payment instruments service provider" as used in this Act means a person who has been registered referred to in Article 62-3.

The term "foreign electronic payment instruments service provider" as used in this Act means a person who has been registered and carries out electronic payment instruments services in a foreign state, whose registration type is same as the one referred to in Article 62-3, pursuant to the provisions of laws and regulations of that foreign state comparable to this Act (including other administrative dispositions similar to that registration) or a person who engages in the act equivalent to the act set forth in paragraph (10), item (iv) in the course of trade based on laws and regulations of that foreign state.

An act of receiving funds, or having another person receive funds, by means of entrustment from a person who has a monetary claim (hereinafter referred to as a "beneficiary" in this Article) (including, in the case of an act of transferring funds from Japan to a foreign state or from a foreign state to Japan, entrustment under multi-tier entrustment arrangements), acquisition of the monetary claim from the beneficiary, or other method similar to these, as performance from the debtor pertaining to that monetary claim or a person who makes a payment under entrustment from that debtor (including those under multi-tier entrustment arrangements; the same applies hereinafter in this Article) or by other similar method (hereinafter referred to as the "debtor, etc." in this Article), and delivering those funds to that beneficiary or a person who receives payment under entrustment from that beneficiary or by other similar method (hereinafter referred to as the "beneficiary, etc." in this Article), thereby transferring those funds from the debtor, etc. to the beneficiary, etc. (excluding an act of transferring those funds from the debtor, etc. to the beneficiary, etc. by receiving cash from the debtor, etc. and delivering that cash to the beneficiary, etc.), which falls under any of the following items, is deemed to fall under the categories of funds transfer transactions:

an act (excluding an act falling under the following item) that satisfies the requirements specified by Cabinet Office Order, including that the beneficiary is an individual (excluding an individual in the case where the individual serves as a beneficiary as a business or for the purpose of business);

an act of transferring funds from Japan to a foreign state or from a foreign state to Japan (excluding that specified by Cabinet Office Order as being less likely to weaken the protection of users in consideration of the manner of the act and other circumstances).

The term "prepaid payment instruments" as used in this Chapter means any of the following instruments:

certificates, electronic devices, or other items (hereinafter referred to as "certificates, etc." in this Chapter) or numbers, markings, or other signs (including additions to the amount recorded in the certificate, etc. by electronic or magnetic means in exchange for the receipt of consideration equivalent to the additional amount recorded) issued in exchange for the receipt of consideration equivalent to the amount (if the amount is found each time to be converted to and indicated as an amount indicated in another unit, include the number of that unit; the same applies hereinafter in this item and in paragraph (3)) recorded in the certificate, etc. or recorded using electronic or magnetic means (meaning in electronic form, magnetic form, or any other form that is impossible to perceive by the human senses alone; the same applies hereinafter in this paragraph) which can be used for the purpose of paying consideration for the purchase or leasing of goods, etc. or the receipt of provision of services from the issuer or the person designated by the issuer (referred to as the "issuer, etc." in the following item) by way of presentation, delivery, notification, or other means;

certificates, etc. or numbers, markings, or other signs issued in exchange for the receipt of consideration equivalent to the quantity of goods, etc. or services recorded in the certificate, etc. or recorded using electronic or magnetic means (including additions to the quantity of goods, etc. or services recorded in the certificate, etc. by electronic or magnetic means in exchange for the receipt of consideration equivalent to the recorded additional quantity) which can be used for the purpose of claiming the delivery or provision of those goods, etc. or services from the issuer, etc. by way of presentation, delivery, notification, or other means.

The term "unused balance on the base date" as used in this Chapter means the amount calculated pursuant to the provisions of Cabinet Office Order as the total of the unused balances arising from all the prepaid payment instruments issued by an issuer thereof by March 31 and September 30 (hereinafter referred to as the "base date" in this Chapter) each year and outstanding as of the relevant base date (meaning the amount specified in each of the following items according to the categories of prepaid payment instruments set forth therein):

prepaid payment instruments specified in item (i) of the preceding paragraph:The amount that is available for the payment of consideration as of the base date; and

prepaid payment instruments specified in item (ii) of the preceding paragraph:The monetary amounts obtained by converting the quantity of goods, etc. or services into the equivalent amounts that can be claimed as of the base date pursuant to the provisions of Cabinet Office Order.

The term "amount available for payment, etc." as used in this Chapter means the amount that is available for the payment of consideration at the time of issuance of the prepaid payment instruments specified in paragraph (1), item (i) or the quantity of goods, etc. or services that can be claimed at the time of issuance of the prepaid payment instruments specified in paragraph (1), item (ii).

The term "prepaid payment instruments for their own business" as used in this Chapter means prepaid payment instruments that can be used for the purpose of paying consideration for the purchase or leasing of goods, etc. or the receipt of provision of services only from the issuer of prepaid payment instruments (including persons who have a close relationship specified by Cabinet Office Order with the issuer (hereinafter referred to as "closely related persons" in item (v) of the following Article and Article 32); the same applies in this paragraph) or those prepaid payment instruments that can be used for the purpose of claiming the delivery or provision of those goods, etc. or services only from the issuer of prepaid payment instruments.

The term "prepaid payment instruments for third-party business" as used in this Chapter means prepaid payment instruments other than prepaid payment instruments for their own business.

The term an "issuer of prepaid payment instruments for its own business" as used in this Chapter means a person who has submitted the written notice specified in Article 5, paragraph (1) (excluding those who have submitted a written notice of discontinuation of the entire issuance business pursuant to the provisions of Article 33, paragraph (1) and have completed the refund specified in Article 20, paragraph (1)).

The term an "issuer of prepaid payment instruments for third-party business" as used in this Chapter means a corporation that has been registered referred to in Article 7.

The term "high-value electronically transferable prepaid payment instruments" as used in this Chapter means the following:

prepaid payment instruments for third-party business for which the unused balance (meaning the amount that is available for the payment of consideration in the case of the prepaid payment instruments referred to in paragraph (1), item (i), and the monetary amounts obtained by converting the quantity of goods, etc. or services into the equivalent amounts that can be claimed pursuant to the provisions of Cabinet Office Order in the case of the prepaid payment instruments referred to in item (ii) of that paragraph; hereinafter the same applies in this item, the following paragraph, and Article 11-2, paragraph (1), item (i)) is recorded in a prepaid payment instruments record account, and which can be transferred by using an electronic data processing system (limited to prepaid payment instruments which satisfy the requirements specified by Cabinet Office Order as being likely to weaken the protection of users of prepaid payment instruments or hinder the sound and appropriate management of the business of issuing prepaid payment instruments, including the requirement that the amount of unused balanced per transferable instrument or the total amount of unused balance within a certain transferable period is a high value); and

anything specified by Cabinet Office Order as being equivalent to what is set forth in the preceding item.

The term "prepaid payment instruments record account" as used in this Chapter means an account in which an issuer of prepaid payment instruments records the details of each prepaid payment instrument issued thereby (limited to those which satisfy the requirement that the maximum amount of unused balance recorded in the account is in excess of the amount specified by Cabinet Office Order as a high value and any other requirements specified by Cabinet Office Order).

The term "record period" as used in this Chapter means a period from the day following the base date to the next base date.

The provisions of this Chapter do not apply to the following prepaid payment instruments:

passenger tickets, admission tickets, and those similar thereto specified by Cabinet Order;

prepaid payment instruments that can be used only during a certain period from the date of issuance specified by Cabinet Order;

prepaid payment instruments issued by the State or local governments (hereinafter referred to as the "State, etc." in the following item);

prepaid payment instruments issued by corporations specified by Cabinet Order as being equivalent to the State, etc., including corporations that have been established directly pursuant to the Act, corporations established by a special act of incorporation pursuant to the special Act, or corporations established by a local government pursuant to the special Act that are wholly owned by the State, etc.;

prepaid payment instruments for their own business issued only to the employees of the issuer (including closely related persons) (limited to those to be used only by those employees) and other prepaid payment instruments specified by Cabinet Order as being similar thereto;

prepaid payment instruments specified by Cabinet Order as those pertaining to transactions that are subject to measures to protect advances pursuant to the provisions of the Installment Sales Act (Act No. 159 of 1961) and other Acts; and

prepaid payment instruments that are intended to be used only in a transaction that constitutes a commercial transaction for the users of prepaid payment instruments.

A corporation (including an association or foundation without juridical personality for which the representative person or administrator has been designated) or an individual who issues prepaid payment instruments which are all prepaid payment instruments for their own business must, pursuant to the provisions of Cabinet Office Order, submit a written notice containing the following particulars to the Prime Minister when the unused balance on the base date of its prepaid payment instruments for their own business as of the base date has exceeded the standard amount (meaning the standard amount specified in Article 14, paragraph (1)) for the first time since the corporation commenced to issue prepaid payment instruments for their own business. The same applies to cases in which the corporation restarted to issue prepaid payment instruments for their own business after discontinuing the whole of the business of issuing prepaid payment instruments for their own business:

name, trade name or other name and address;

in cases of a corporation, the amount of capital or contribution;

name and location of the business office or office for the business of issuing prepaid payment instruments;

in cases of a corporation (including an association or foundation without juridical personality for which the representative person or administrator has been designated), name of the representative person or administrator;

unused balance on the base date as of the relevant base date;

the type, the name, and the amount available for payment, etc. of the prepaid payment instruments;

if a specified period of time which is available for the purpose of paying consideration for the purchase or renting of goods, etc. or the receipt of services being provided or for the purpose of claiming the delivery or provision of the goods, etc. or services, or the expiry date is set for the prepaid payment instruments, the period of time or due date;

content and means of the business of issuing prepaid payment instruments;

if a part of the business of issuing prepaid payment instruments is entrusted to a third party, the details of the business pertaining to the entrustment, the name or trade name or other name and address of the third party to whom the business of issuing prepaid payment instruments is entrusted;

location and contact address of the business office or office that handles complaints from the users about the issuance and use of prepaid payment instruments or provide consultations for the users; and

other particulars specified by Cabinet Office Order.

Documents concerning finance and other documents specified by Cabinet Office Order must be attached to the written notice referred to in the preceding paragraph.

When any of the particulars set forth in the items of paragraph (1) (excluding item (v)) are changed, the issuer of prepaid payment instruments for its own business must notify the Prime Minister to that effect without delay.

The Prime Minister must create a register of issuers of prepaid payment instruments for its own business and make it available for public inspection.

No person may engage in the business of issuing prepaid payment instruments for third-party business unless the person is a corporation who has been registered by the Prime Minister.

A person who intends to obtain registration referred to in the preceding Article must, pursuant to the provisions of Cabinet Office Order, submit a written application for registration containing the following particulars to the Prime Minister:

trade name or other name, and address;

the amount of capital or contribution;

name and location of the business office or office pertaining to the business of issuing prepaid payment instruments;

names of officers;

the type, the name, and the amount available for payment, etc. of the prepaid payment instruments;

if a specified period of time which is available for the purpose of paying consideration for the purchase or renting of goods, etc. or the receipt of the service being provided or for the purpose of claiming the delivery or provision of those goods, etc. or services, or the expiry date is set for the prepaid payment instruments, the period of time or due date;

the details and means of the business of issuing prepaid payment instruments;

if a part of the business of issuing prepaid payment instruments is entrusted to a third party, the details of the business pertaining to the entrustment, the name or trade name or other name and address of the third party to whom the business of issuing prepaid payment instruments is entrusted;

location and contact address of the business office or office that handles complaints from the users about the issuance and use of prepaid payment instruments or provide consultations for the users; and

other particulars specified by Cabinet Office Order.

A document in which the applicant pledges that the applicant does not fall under any of the items of Article 10, paragraph (1), documents concerning finance, and other documents specified by Cabinet Office Order must be attached to the application for registration referred to in the preceding paragraph.

The Prime Minister must, when an application for registration referred to in Article 7 is filed, register the following particulars to the register of issuers of prepaid payment instruments for third-party business, except when the Minister refuses the registration pursuant to the provisions of paragraph (1) of the following Article:

particulars listed in the items of paragraph (1) of the preceding Article; and

date of registration and registration number.

If the Prime Minister registers the particulars under the provisions of the preceding paragraph, the Minister must notify the applicant to that effect without delay.

The Prime Minister must make the register of issuers of prepaid payment instruments for third-party business available for public inspection.

The Prime Minister must refuse registration when an applicant falls under any of the following items, or a written application for registration or its accompanying documents contain a false statement about important particulars, or lack a statement about important particulars:

a person other than a corporation (including a corporation established under the laws and regulations of a foreign state who does not have a business office or office in Japan);

a corporation that does not fall under any of the following items:

a corporation whose amount of net assets exceeds the amount of money specified by Cabinet Order in light of the geographical scope within which the prepaid payment instruments issued by the corporation can be used and other circumstances; or

a not-for-profit corporation specified by Cabinet Order;

a corporation which has not taken necessary measures for ensuring that goods, etc. or services that one can purchase or rent, or which one can receive the delivery or provision of by using prepaid payment instruments do not cause harm to or are not likely to cause harm to public order or morals;

a corporation which has not established a system that is necessary for making payments to member shops (meaning a seller or lender of goods, etc. that one can purchase or rent or of which one can receive the delivery of by using prepaid payment instruments or a provider of services of which one can receive the provision of by using prepaid payment instruments; the same applies in Article 32) appropriately;

a corporation which has not established a system that is necessary for ensuring compliance with the provisions of this Chapter;

a corporation which intends to use a trade name or other name that is identical to the one currently being used by another issuer of prepaid payment instruments for third-party business or that may be misidentified as another issuer of prepaid payment instruments for third-party business;

a corporation whose registration referred to in Article 7 has been revoked pursuant to the provisions of Article 27, paragraph (1) or (2), or had its registration of the same type in a foreign state (including other administrative dispositions similar to the registration; the same applies in item (ix), (e)) revoked pursuant to the provisions of laws and regulations of the foreign state equivalent to this Act (limited to the provisions of this Chapter and the provisions of Chapter VIII that are related thereto; hereinafter the same applies in this paragraph), and for which three years have not passed from the date of revocation;

a corporation which has been punished by a fine (including a punishment under laws and regulations of a foreign state equivalent to this; the same applies in (d) of the following item) pursuant to the provisions of this Act or laws and regulations of a foreign state equivalent to this Act, and for which three years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a corporation whose officers include a person who falls under any of the following items:

a person specified by Cabinet Office Order as being unable to properly perform their duties pertaining to the business of issuing prepaid payment instruments due to a mental or physical disorder;

a person who has not had their rights restored after receiving an order to commence bankruptcy proceedings, or a person equivalent thereto pursuant to laws and regulations of a foreign state;

a person who has been sentenced to imprisonment or heavier punishment (including an equivalent punishment pursuant to laws and regulations of a foreign state), and for whom three years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a person who has been punished by a fine pursuant to the provisions of this Act or laws and regulations of a foreign state equivalent to this Act, and for whom three years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

if an issuer of prepaid payment instruments for third-party business had its registration referred to in Article 7 revoked pursuant to the provisions of Article 27, paragraph (1) or (2), or a corporation had its registration of the same type in a foreign state revoked pursuant to the provisions of laws and regulations of the foreign state equivalent to this Act, a person who was an officer of the corporation at any time during the thirty days prior to the revocation date and for whom three years have not passed from that date or a person specified by Cabinet Order as a person similar thereto.

If the Prime Minister refuses the registration pursuant to the provisions of the preceding paragraph, the Minister must notify the applicant to that effect by indicating the reason therefor without delay.

If any of the particulars set forth in the items of Article 8, paragraph (1) are changed, the issuer of prepaid payment instruments for third-party business must notify the Prime Minister to that effect without delay.

If the Prime Minister accepts a notification referred to in the preceding paragraph, the Minister must register the informed particulars in the register of issuers of prepaid payment instruments for third-party business.

When an issuer of prepaid payment instruments intends to issue high-value electronically transferable prepaid payment instruments, in advance, the issuer must notify the Prime Minister of a business implementation plan stating the following particulars, pursuant to the provisions of Cabinet Office Order:

the maximum amount of unused balance to be recorded in a prepaid payment instruments record account related to the high-value electronically transferable prepaid payment instruments, if the maximum amount is specified;

the method of management of an electronic data processing system to be used to conduct the business of issuing the high-value electronically transferable prepaid payment instruments; and

other particulars specified by Cabinet Office Order as particulars necessary for protecting the users of high-value electronically transferable prepaid payment instruments and ensuring the sound and appropriate management of the business of issuing high-value electronically transferable prepaid payment instruments.

When an issuer of prepaid payment instruments intends to make a change to the business implementation plan notified pursuant to the provisions of the preceding paragraph, in advance the issuer must notify the Prime Minister of the change pursuant to the provisions of Cabinet Office Order.

An issuer of prepaid payment instruments for third-party business must not have another person conduct the business of issuing prepaid payment instruments for third-party business in the name of the issuer of prepaid payment instruments for third-party business.

When issuing prepaid payment instruments, an issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, provide users with information on the following particulars:

name, trade name or other name;

amount available for payment, etc. of the prepaid payment instruments;

if a specified period of time which is available for the purpose of paying consideration for the purchase or renting of goods, etc. or the receipt of services being provided or for the purpose of claiming the delivery or provision of those goods, etc. or services, or the due date is set for the prepaid payment instruments, the period of time or due date;

location and contact address of the business office or office that handles complaints from the users about the issuance and use of prepaid payment instruments or provide consultations for the users; and

other particulars specified by Cabinet Office Order.

Notwithstanding the provisions of the preceding paragraph, if the certified association for payment service providers of which the issuer of prepaid payment instruments is a member makes public to the users of prepaid payment instruments the particulars listed in item (iv) of the preceding paragraph pertaining to the issuer of prepaid payment instruments or in other cases specified by Cabinet Office Order, the issuer of prepaid payment instruments is not required to provide information as prescribed in that paragraph with regard to those particulars.

Beyond what is provided for in paragraph (1), an issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, take necessary measures for protecting the users of prepaid payment instruments and ensuring sound and appropriate management of business of issuing prepaid payment instruments.

If the unused balance on the base date exceeds the amount specified by Cabinet Order (hereinafter referred to as the "standard amount" in this Chapter), an issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, make security deposits for issuance to the official depository nearest to its principal business office or office in an amount equivalent to not less than half the amount of the unused balance on the base date (hereinafter referred to as the "amount required for deposit" in this Chapter).

If, due to completion of the procedure for the fulfillment of the right prescribed in Article 31, paragraph (1) or the occurrence of other facts, the amount of security deposits for issuance (including the total amount of the secured amount prescribed in the following Article and the amount of trust property prescribed in Article 16, paragraph (1); the same applies in Article 18, item (ii) and Article 23, paragraph (1), item (iii)) is less than the amount required for deposit as of the base date immediately preceding the day on which those issues occurred (or the amount calculated as if the Prepaid Payment Instruments pertaining to those procedures did not exist in accordance with the method specified by Cabinet Office Order as of the base date immediately preceding the day on which the refund procedure prescribed in Article 20, paragraph (1) or the procedure for the fulfillment of the right prescribed in Article 31, paragraph (1) was completed), an issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, deposit the shortage and notify the Prime Minister to that effect without delay.

Security deposits for issuance may be paid in national government bond certificates, local government bond certificates or other bond certificates specified by Cabinet Office Order (including book-entry transfer bonds specified in Article 278, paragraph (1) of the Act on Book-Entry Transfer of Corporate Bonds and Shares; the same applies in Article 16, paragraph (3)). In this case, the appraised value of those bond certificates is determined pursuant to the provisions of Cabinet Office Order.

If an issuer of prepaid payment instruments has concluded a guarantee contract for security deposits for issuance (meaning a contract in which a deposit-taking institution satisfying the requirements specified by Cabinet Order or any other person specified by Cabinet Order promises that security deposits for issuance will be made on behalf of the issuer of prepaid payment instruments in response to an order by the Prime Minister; the same applies in this Chapter) and has notified the Minister to that effect, pursuant to the provisions of Cabinet Order, it may choose not to deposit all or part of the security deposits for issuance with regard to the secured amount (meaning the amount of money to be deposited under the guarantee contract for security deposits for issuance; the same applies in Article 17) limited to the period during which the contract remains in force.

If an issuer of prepaid payment instruments concludes a trust agreement of security deposits for issuance with a trust company, etc. (meaning a trust agreement whose purpose is to apply the trust property to assign security deposits for issuance in response to an order by the Prime Minister and the provisions which prescribe that the trust company, etc. is to carry out necessary acts including the management of the trust property for the achievement of the purpose; the same applies hereinafter in this Chapter) and notifies the Minister to that effect, it may choose not to deposit all or part of the security deposits for issuance with regard to the amount of the trust property, for the period during which the trust property is entrusted based on the trust agreement for security deposits for issuance.

A trust agreement for security deposits for issuance must prescribe the following particulars:

the beneficiaries of the trust agreement for security deposits for issuance must be the holders of prepaid payment instruments issued by the issuer of prepaid payment instruments who is the party to the trust agreement for security deposits for issuance;

an agent of the beneficiaries must be appointed;

a trust company, etc. must realize the trust property and deposit the proceeds thereof in response to an order by the Prime Minister; and

other particulars specified by Cabinet Office Order.

The types of trust properties to be entrusted pursuant to a trust agreement for security deposits for issuance are limited to money, bank deposits and savings (limited to those specified by Cabinet Office Order), or national government bond certificates, local government bond certificates or other bond certificates specified by Cabinet Office Order. In this case, the appraised value of those bond certificates is determined pursuant to the provisions of Cabinet Office Order.

If the Prime Minister finds it necessary for the protection of the interests of users of prepaid payment instruments, the Minister may order an issuer of prepaid payment instruments who has concluded a guarantee contract for security deposits for issuance or a trust agreement for security deposits for issuance or the counterparty thereto to deposit all or part of the secured amount or the amount of proceeds from the trust property that have been realized.

All or part of the security deposits for issuance may be recovered, pursuant to the provisions of Cabinet Order, if the user falls under any of the following items:

if the unused balance on the base date is not more than the standard amount;

if the amount of the security deposits for issuance exceeds the amount required for deposit;

if the procedure for the fulfillment of the right referred to in Article 31, paragraph (1) has been completed; and

beyond what is set forth in the preceding three items, the cases specified by Cabinet Order, as the cases in which the interests of users of prepaid payment instruments are adequately protected.

Beyond what is provided for in this Section, a change of the official depository for security deposits for issuance due to a change in the location of the principal business office or office of an issuer of prepaid payment instruments and other particulars necessary for the making of security deposits for issuance is prescribed by Cabinet Office Order and Ministry of Justice Order.

If an issuer of prepaid payment instruments falls under any of the following items, the issuer must refund the outstanding balance of those prepaid payment instruments specified by Cabinet Office Order to the holder's account:

if the issuer of prepaid payment instruments discontinues all or part of the business of issuing prepaid payment instruments (excluding cases where the business has been handed over to the successor due to inheritance, transfer of business, a merger or company split, or for other reasons);

if the issuer of prepaid payment instruments is the issuer of prepaid payment instruments for third-party business, when it has had its registration referred to in Article 7 revoked pursuant to the provisions of Article 27, paragraph (1) or (2); or

other cases specified by Cabinet Office Order.

If an issuer of prepaid payment instruments intends to refund the amount pursuant to the provisions of the preceding paragraph, the issuer must give public notice of the following particulars and provide the information concerning those particulars to the holders of the prepaid payment instruments subject to the refund, pursuant to the provisions of Cabinet Office Order:

a statement to the effect that the amount will be refunded;

a statement to the effect that the holders of the prepaid payment instruments subject to the refund must file a request for claims within a certain period of not less than sixty days;

a statement to the effect that the holders of the prepaid payment instruments who fail to file a request for claims within the period referred to in the preceding item must be excluded from the procedure for the refund; and

other particulars specified by Cabinet Office Order.

The provisions of Article 940, paragraph (1) (limited to the part pertaining to item (iii)) and Article 940, paragraph (3) of the Companies Act (Act No. 86 of 2005) apply mutatis mutandis to cases where an issuer of prepaid payment instruments (limited to companies) gives public notice under the preceding paragraph by way of electronic public notice (meaning electronic public notice specified in Article 2, item (xxxiv) of that Act; the same applies in the following paragraph). In this case, any necessary technical replacement of terms is specified by Cabinet Order.

The provisions of Article 940, paragraph (1) (limited to the part pertaining to item (iii)) and Article 940, paragraph (3), Article 941, Article 946, Article 947, Article 951, paragraph (2), Article 953, and Article 955 of the Companies Act apply mutatis mutandis to cases where an issuer of prepaid payment instruments (limited to foreign companies) gives public notice under paragraph (2) by way of electronic public notice. In this case, any necessary technical replacement of terms is specified by Cabinet Order.

An issuer of prepaid payment instruments must not refund any amount with regard to the prepaid payment instruments that it issues to the holders thereof except in cases set forth in the items of paragraph (1); provided, however, that this does not apply to cases where the amount to be refunded is small or other cases where the sound management of the business of issuing prepaid payment instruments is not hindered, as specified by Cabinet Office Order.

An issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, take measures necessary for preventing leakage, loss, or damage to information pertaining to the business of issuing prepaid payment instruments and other measures for ensuring security management of the relevant information.

If an issuer of prepaid payment instruments entrusts (including those under multi-tier entrustment arrangements) part of the business of issuing prepaid payment instruments to a third party, the issuer of prepaid payment instruments must provide guidance to the third party to whom the relevant business has been entrusted and take other measures necessary for ensuring the proper and steady operation of the business pursuant to the provisions of Cabinet Office Order.

An issuer of prepaid payment instruments must take measures necessary to appropriately and promptly process complaints from the users about the issuance and use of prepaid payment instruments in an appropriate and prompt manner.

An issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, prepare and maintain the books of accounts and documents on its business of issuing prepaid payment instruments.

An issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, prepare a written report on the business of issuing prepaid payment instruments containing the following particulars as of the each base date, and submit it to the Prime Minister:

the amount of prepaid payment instruments issued during the record period including the relevant base date;

the unused balance on the base date of prepaid payment instruments as of the relevant base date;

the amount of the security deposits for issuance pertaining to the unused balance on the base date; and

other particulars specified by Cabinet Office Order.

Documents concerning finance and other documents specified by Cabinet Office Order must be attached to the written report referred to in the preceding paragraph.

In the case of issuers of prepaid payment instruments for its own business, the provisions of paragraph (1) do not apply to Base Dates falling within a period from the day immediately following the Base Date on which the Unused Base Date Balance decreased to the standard amount to the day immediately preceding the subsequent Base Date on which the Unused Base Date Balance again exceeded the Standard Amount.

If the Prime Minister finds it necessary for ensuring sound and appropriate management of the business of issuing prepaid payment instruments of an issuer of prepaid payment instruments, the Minister may order the issuer of prepaid payment instruments to submit reports or materials that can be used as reference for its business or property, or have officials enter the business office, office or other facility of that issuer of prepaid payment instruments, ask questions about the status of its business or property or inspect its books and documents or other items.

When the Prime Minister finds it particularly necessary for ensuring sound and appropriate management of the business of issuing prepaid payment instruments of an issuer of prepaid payment instruments, the Minister may order a person to whom business has been entrusted by the issuer of prepaid payment instruments (including persons to whom the business has been entrusted by the entrusted person (including those under multi-tier entrustment arrangements); hereinafter the same applies in this Article and Article 32) to submit reports or materials that can be used as reference for the business or property of the issuer of prepaid payment instruments, or have officials enter the facility of a person to whom business has been entrusted by the issuer of prepaid payment instruments, ask questions about the status of the business or property of the issuer of prepaid payment instruments or inspect its books and documents or other items, to the extent necessary for the Minister.

A person to whom business has been entrusted by an issuer of prepaid payment instruments referred to in the preceding paragraph may, if there are reasonable grounds, refuse to submit reports or materials, or to respond to the inquiry or the inspection under the provisions of that paragraph.

If the Prime Minister finds it necessary for ensuring the sound and appropriate management of the business of issuing repaid payment instruments of an issuer of prepaid payment instruments, the Minister may order that an issuer of prepaid payment instruments to take measures necessary to improve the operation of its business or its financial status or other measures necessary for the supervision, to the extent necessary for the Minister.

If an issuer of prepaid payment instruments for its own business falls under any of the following items, the Prime Minister may order the issuer of prepaid payment instruments for their own business to suspend all or part of its business of issuing prepaid payment instruments, by setting a period for suspension not exceeding six months:

the issuer of prepaid payment instruments for their own business violates this Act or an order under this Act, or a disposition based this Act or an order; or

if the right specified in Article 31, paragraph (1) pertaining to the prepaid payment instruments issued by the issuer of prepaid payment instruments for their own business is likely to be fulfilled, when the Prime Minister finds it necessary to prevent the spread of damage to the users of those prepaid payment instruments.

If an issuer of prepaid payment instruments for third-party business falls under any of the following items, the Prime Minister may revoke its registration referred to in Article 7 or order the issuer of prepaid payment instruments for third-party business to suspend all or part of its business of issuing prepaid payment instruments for third-party business, by setting a period for suspension not exceeding six months:

the issuer of prepaid payment instruments for third-party business falls under any of the items of Article 10, paragraph (1);

the issuer of prepaid payment instruments for third-party business is registered referred to in Article 7 through wrongful means;

the issuer of prepaid payment instruments for third-party business violates this Act or an order under this Act, or a disposition based on this Act or an order; or

if the right specified in Article 31, paragraph (1) pertaining to the prepaid payment instruments issued by the third-party issue is likely to be fulfilled, when the Prime Minister finds it necessary to prevent the spread of damage to the users of those prepaid payment instruments.

If the Prime Minister is unable to ascertain the locations of business offices or offices of an issuer of prepaid payment instruments for third-party business or the whereabouts of the officer representing the issuer of prepaid payment instruments for third-party, the Minister, pursuant to the provisions of Cabinet Office Order, may issue a public notice of that fact and revoke the registration of the issuer of prepaid payment instruments for third-party business under Article 7 if no application is made by the issuance after thirty days have passed since the day of the public notice.

The provisions of Chapter III of the Administrative Procedure Act (Act No. 88 of 1993) do not apply to a disposition referred to in the preceding paragraph.

If the Prime Minister has revoked the registration referred to in Article 7 pursuant to provisions of paragraph (1) or (2) of the preceding Article or when the registration referred to in Article 7 has ceased to be effective pursuant to the provisions of Article 33, paragraph (2), the Minister must delete that registration.

If the Prime Minister implements a disposition pursuant to the provisions of Article 26, or Article 27, paragraph (1) or (2), the Minister must give public notice to that effect pursuant to the provisions of Cabinet Office Order.

If an issuer of prepaid payment instruments, pursuant to the provisions of Cabinet Office Order, submits a written notice containing a statement that the issuer seeks the application of the provisions of this paragraph to the issuer and other particulars specified by Cabinet Office Order to the Prime Minister, with regard to the application of the provisions of Article 3, paragraph (2) to the issuer of prepaid payment instruments after the submission date of the written notice, the provisions of this Chapter are applied to the person by replacing the phrase "and September 30" in Article 3, paragraph (2) with ", June 30, September 30, and December 31".In this case, any necessary technical replacement of terms is specified by Cabinet Order.

If an issuer of prepaid payment instruments to whom the provisions of the preceding paragraph are applied, pursuant to the provisions of Cabinet Office Order, submits a written notice containing a statement that the issuer no longer seeks the application of the provisions of that paragraph to the issuer and other particulars specified by Cabinet Office Order to the Prime Minister, the provisions of the preceding paragraph do not apply to the issuer after the submission date of the written notice (if the record period including the submission date falls within the period from the day following the special base date (meaning June 31 and December 31 of each year) to the next ordinary base date (meaning March 31 and September 30 of each year; hereinafter the same applies in this paragraph)); provided, however, that this does not apply if the issuer of prepaid payment instruments submits another written notice referred to in that paragraph after the submission date.

An issuer of prepaid payment instruments to whom the provisions of paragraph (1) are applied may submit a written notice referred to in the main clause of the preceding paragraph only on or after the day on which a period specified by Cabinet Order has passed from the submission date of a written notice referred to in paragraph (1).

An issuer of prepaid payment instruments who has submitted a written notice referred to in the main clause of paragraph (2) may submit a written notice referred to in paragraph (1) only on or after the day on which a period specified by Cabinet Order has passed from the submission date of a written notice referred to in the main clause of paragraph (2).

If a person other than an issuer of prepaid payment instruments has succeeded to the business of issuing prepaid payment instruments for its own business from an issuer of prepaid payment instruments by way of inheritance, transfer of business, merger or company split, or for other reasons (excluding cases where the person has succeeded to the business of issuing prepaid payment instruments for third-party business), if the unused balance on the base date on the base date immediately preceding the date of succession of prepaid payment instruments for their own business pertaining to the succession of the business exceeded the standard amount, the person other than an issuer of prepaid payment instruments is deemed to be an issuer of prepaid payment instruments for their own business who has issued the prepaid payment instruments for its own business, and the provisions of this Act (excluding Article 5) applies to that person.

A person who is deemed to be an issuer of prepaid payment instruments for its own business pursuant to the provisions of the preceding paragraph must submit a written notice containing the following particulars to the Prime Minister without delay, pursuant to the provisions of Cabinet Office Order:

a statement that the person has succeeded the business of issuing prepaid payment instruments for their own business;

particulars listed in Article 5, paragraph (1), items (i) through (iv);

the unused balance on the base date on the base date immediately preceding the date of succession of prepaid payment instruments for their own business; and

particulars listed in Article 5, paragraph (1), items (vi) through (xi) pertaining to the succeeded prepaid payment instruments for their own business.

Documents concerning finance and other documents specified by Cabinet Office Order must be attached to the written notice referred to in the preceding paragraph.

If any of the particulars set forth in paragraph (2), item (ii) or item (iv) are changed, the person who is deemed to be an issuer of prepaid payment instruments for its own business pursuant to the provisions of paragraph (1) must notify the Prime Minister to that effect without delay.

A holder of prepaid payment instruments has the right to receive, in preference over other creditors, payments with regard to claims pertaining to prepaid payment instruments for the return of the security deposits for issuance pertaining to those prepaid payment instruments.

In the case falling under any of the following items, when the Prime Minister finds it necessary for the protection of the interests of holders of prepaid payment instruments, the Minister must give a public notice that persons holding the right specified in the preceding paragraph must file their claims with the Prime Minister within a certain period not less than sixty days and that they must be excluded from the procedures for the fulfillment of the right to the return of the security deposits for issuance pertaining to the public notice unless they file their claims within the relevant period:

when a petition is filed for the fulfillment of the right specified in the preceding paragraph; or

when a petition for commencement of bankruptcy proceedings, etc. is filed against an issuer of prepaid payment instruments.

The Prime Minister may, pursuant to the provisions of Cabinet Office Order, entrust the administrative functions related to the fulfillment of the right specified in paragraph (1) to a deposit-taking institution or any other person specified by Cabinet Order (referred to as "agents for a regional finance office that distribute security deposits to holders of prepaid payment instruments" in the following paragraph and in paragraph (5)).

Notwithstanding the provisions of any other Acts, any agents for a regional finance office that distributes security deposits to holders of prepaid payment instruments may conduct the business of performing the administrative functions entrusted pursuant to the provisions of the preceding paragraph.

With regard to the application of the Penal Code (Act No. 45 of 1907) and other penal provisions to an agents for a regional finance office that distributes security deposits to holders of prepaid payment instruments to whom business has been entrusted pursuant to the provisions of paragraph (3) or its officers or employees engaging in entrusted business are deemed to be officials engaged in public service pursuant to laws and regulations.

Beyond what is provided for in paragraph (2) through the preceding paragraph, particulars necessary for the fulfillment of the right referred to in paragraph (1) are specified by Cabinet Order.

If a person to whom the business of issuing prepaid payment instruments has been entrusted by an issuer of prepaid payment instruments, or a closely related person, member shop or any other related person of the issuer of prepaid payment instruments is requested by the Prime Minister to extend their cooperation necessary for the fulfillment of the right specified in paragraph (1) of the preceding Article pertaining to the prepaid payment instruments issued by the issuer of prepaid payment instruments, the person is to endeavor to respond to the request.

If an issuer of prepaid payment instruments falls under any of the following items, it must notify the Prime Minister to that effect without delay:

when the issuer of prepaid payment instruments has discontinued all or part of the business of issuing prepaid payment instruments; or

when the issuer of prepaid payment instruments falls under Article 31, paragraph (2), item (ii).

When an issuer of prepaid payment instruments for third-party business has discontinued all or part of the business of issuing prepaid payment instruments for third-party business, the registration of the issuer of prepaid payment instruments for third-party business referred to in Article 7 ceases to be effective.

With regard to an issuer of prepaid payment instruments for third-party business, when the registration referred to in Article 7 is revoked pursuant to provisions of Article 27, paragraph (1) or (2) or ceased to be effective pursuant to the provisions of paragraph (2) of the preceding Article, the person who has been an issuer of prepaid payment instruments for third-party business is deemed to be an issuer of prepaid payment instruments for third-party business within the scope of the purpose of completing the performance of obligations pertaining to the prepaid payment instruments for third-party business issued by the person.

The provisions of Article 14, paragraph (1) do not apply to an issuer of prepaid payment instruments who is a deposit-taking institution satisfying the requirements specified by Cabinet Order or any other person specified by Cabinet Order.

A person conducting the business of issuing prepaid payment instruments in a foreign state must not solicit a person in Japan for prepaid payment instruments issued by the person in the foreign state.

The term "type I funds transfer services" as used in this Act means funds transfer services (excluding the specified funds transfer services; hereinafter the same applies except in paragraph (4)) other than type II funds transfer services and type III funds transfer services.

The term "type II funds transfer services" as used in this Act means funds transfer services to handle only funds transfer transactions for the transfer of funds at amounts not exceeding the amount specified as a small amount by Cabinet Order in the course of trade (excluding type III funds transfer services).

The term "type III funds transfer services" as used in this Act means funds transfer services to handle only funds transfer transactions for the transfer of funds at amounts not exceeding the amount specified as a particularly small amount by Cabinet Order in the course of trade.

The term "specified funds transfer services" as used in this Chapter means funds transfer services to handle only funds transfer transactions in specified trusts in the course of trade.

Notwithstanding the provisions of Article 4, paragraph (1) and Article 47, paragraph (1) of the Banking Act, a person registered by the Prime Minister may provide the funds transfer service.

Notwithstanding the provisions of Article 4, paragraph (1) and Article 47, paragraph (1) of the Banking Act, a specified trust company may provide specified funds transfer services if it does not fall under Article 40, paragraph (1), items (vii) and (viii).

When a specified trust company intends to provide specified funds transfer services pursuant to the provisions of paragraph (1), the specified trust company must notify the Prime Minister of this intention, the details and method of the specified funds transfer services, and other particulars specified by Cabinet Office Order, by attaching a document in which the company pledges that it does not fall under Article 40, paragraph (1), items (vii) and (viii), documents containing particulars concerning the establishment of a system for ensuring the provision of specified funds transfer services in a proper and steady manner, and other documents specified by Cabinet Office Order, pursuant to the provisions of Cabinet Office Order.

If a beneficiary of beneficial interest in a specified trust involved in specified funds transfer services requests the full or partial redemption of the principal of the trust for the beneficial interest in the specified trust during the term of the trust agreement, a specified trust company that provides the specified funds transfer services pursuant to the provisions of paragraph (1) must meet the request without delay by cancelling part of the trust agreement for the beneficial interest in the specified trust; provided, however, that this does not apply in cases specified by Cabinet Office Order as being less likely to weaken the protection of users.

A person who intends to be registered as referred to in Article 37 must, pursuant to the provisions of Cabinet Office Order, submit a written application for registration containing the following particulars to the Prime Minister:

trade name and address;

amount of capital;

name and location of the business office pertaining to the funds transfer service;

name of company director and company auditor (company director(s) in cases of a company with audit and supervisory committee, etc.; company director(s) and executive officer(s) in cases of a company with nominating committee, etc.; and persons equivalent thereto pursuant to laws and regulations of a foreign state in cases of a foreign funds transfer service provider);

in cases of a company with accounting advisors, names of accounting advisors;

in cases of a foreign funds transfer service provider, name of the representative person in Japan;

categories of funds transfer services (meaning the categories of type I funds transfer services, type II funds transfer services, and type III funds transfer services; hereinafter the same applies in this Chapter and Article 107, item (vi));

details and means of the funds transfer service;

if part of the funds transfer service is entrusted to a third party, the details of the business pertaining to the entrustment and the name or trade name or other name and address of the third party to whom the funds transfer services are entrusted;

type of the businesses, if the service provider conducts other business; and

other particulars specified by Cabinet Office Order.

A document in which the applicant pledges that the applicant does not fall under any of the items of Article 40, paragraph (1), documents concerning finance, documents containing particulars concerning the establishment of a system for ensuring the provision of funds transfer services in a proper and steady manner, and other documents specified by Cabinet Office Order must be attached to the application for registration referred to in the preceding paragraph.

The Prime Minister must, when an application for registration referred to in Article 37 is filed, register the following particulars in the register of funds transfer service providers, except when refusing the registration pursuant to the provisions of paragraph (1) of the following Article:

particulars listed in the items of paragraph (1) of the preceding Article; and

date of registration and registration number.

When the Prime Minister registered the particulars under the provisions of the preceding paragraph, the Minister must notify the applicant to that effect without delay.

The Prime Minister must make the register of funds transfer service providers available for public inspection.

The Prime Minister must refuse registration when an applicant falls under any of the following items, or a written application for registration or its accompanying documents contain false statements about important particulars, or lack any statement about important particulars:

a person other than a stock company or a foreign funds transfer service provider (limited to a foreign company that has a business office in Japan);

a foreign funds transfer service provider that is a corporation who does not have a representative person in Japan (limited to a person who is domiciled in Japan);

a corporation which lacks the sufficient financial foundation that is necessary for the provision of funds transfer services in a proper and steady manner;

a corporation which has not established a system for the provision of funds transfer services in a proper and steady manner;

a corporation which has not established a system that is necessary for ensuring compliance with the provisions of this Chapter;

a corporation which intends to use a trade name that is identical to the one currently being used by another funds transfer service provider or that may be misidentified as another funds transfer service provider;

a corporation which had its registration referred to in Article 37 revoked pursuant to the provisions of Article 56, paragraph (1) or (2), had its registration referred to in Article 62-3 revoked pursuant to the provisions of Article 62-22, paragraph (1) or (2), had the permission referred to in Article 63-23 revoked pursuant to the provisions of Article 63-37, paragraph (1) or (2), or had its license under the provisions of Article 64, paragraph (1) revoked pursuant to the provisions of Article 82, paragraph (1) or (2), or had the registration, permission or license of the same type in a foreign state (including other administrative dispositions similar to the registration, permission or license) revoked pursuant to the provisions of laws and regulations of the foreign state equivalent to this Act or the Banking Act, etc., and for which five years have not passed from the date of the revocation;

a corporation which received an order to discontinue specified funds transfer services pursuant to the provisions of Article 56, paragraph (1) as applied pursuant to Article 37-2, paragraph (2) following the deemed replacement of terms, received an order to discontinue electronic payment instruments services pursuant to the provisions of Article 62-22, paragraph (1) as applied pursuant to Article 62-8, paragraph (2) following the deemed replacement of terms, or received an order to discontinue the same type of services as these services pursuant to the provisions of laws and regulations of a foreign state that are equivalent to this Act or the Banking Act, etc., and for which five years have not elapsed from the date of the order;

a corporation which has been punished by a fine (including a punishment pursuant to laws and regulations of a foreign state equivalent to this) for violating the provisions of this Act, the Banking Act, the Act on Engagement in Trust Business by Financial Institutions, the Act Regulating the Receipt of Contributions, the Receipt of Deposits, and Interest Rates (Act No. 195 of 1954), or the Trust Business Act, or laws and regulations of a foreign state equivalent thereto, and for which five years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a corporation whose other business is found to be against the public interest;

a corporation that employs a person who is a company director, company auditor, executive officer, or accounting advisor (meaning a person equivalent thereto under laws and regulations of a foreign state or representative persons in Japan in cases of a foreign funds transfer service provider; hereinafter referred to as a "company director, etc." in this Chapter) falling under any of the following items:

a person specified by Cabinet Office Order as being unable to properly perform their duties pertaining to funds transfer services due to a mental or physical disorder;

a person who has not had their rights restored after receiving an order to commence bankruptcy proceedings, or a person equivalent thereto pursuant to laws and regulations of a foreign state;

a person who has been sentenced to imprisonment or heavier punishment (including equivalent punishment pursuant to laws and regulations of a foreign state), and for whom five years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a person who has been punished by a fine (including a punishment pursuant to laws and regulations of a foreign state equivalent to this) for violating the provisions of this Act, the Banking Act, etc., the Act on Engagement in Trust Business by Financial Institutions, the Act Regulating the Receipt of Contributions, the Receipt of Deposits, and Interest Rates, the Act on Prevention of Unjust Acts by Organized Crime Group Members (Act No. 77 of 1991), or the Trust Business Act, or laws and regulations of a foreign state equivalent thereto, and for whom five years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed; or

if a funds transfer service provider had its registration referred to in Article 37 revoked pursuant to the provisions of Article 56, paragraph (1) or (2), or a corporation had the registration of the same type in a foreign state (including other administrative dispositions similar to the registration) revoked pursuant to the provisions of laws and regulations of the foreign state equivalent to this Act, a person who was a company director, etc. of the corporation at any time during the thirty days prior to the date of the revocation and for whom five years have not passed from the relevant date or a person similar thereto specified by Cabinet Order.

When the Prime Minister refuses the registration pursuant to the provisions of the preceding paragraph, the Minister must notify the applicant to that effect by indicating the reason without delay.

When a funds transfer service provider intends to provide type I funds transfer services, the funds transfer service provider must formulate a business implementation plan containing the following particulars and obtain authorization of the Prime Minister, pursuant to the provisions of Cabinet Office Order. The same applies when a funds transfer service provider intends to change the business implementation plan (excluding minor changes specified by Cabinet Office Order):

if the funds transfer service provider sets the maximum amount of funds to transfer in funds transfer transactions, that upper limit;

the method of the management of an electronic data processing system to be used for funds transfer transactions; and

other particulars specified by Cabinet Office Order.

When a funds transfer service provider has made any minor change specified by Cabinet Office Order as prescribed in the preceding paragraph, the funds transfer service provider must notify the Prime Minister to that effect.

The Prime Minister may set requirements for the approval referred to in paragraph (1) and change those requirements, to the extent necessary for the approval.

When a funds transfer service provider intends to change any of the particulars set forth in Article 38, paragraph (1), item (vii) (limited to changes due to its intention to provide a new type of funds transfer service), the funds transfer service provider must have the change registered by the Prime Minister, pursuant to the provisions of Cabinet Office Order.

The provisions of Articles 38 through 40 apply mutatis mutandis to the registration of change referred to in the preceding paragraph. In this case, the term the "following particulars" in Article 38, paragraph (1) is replaced with the "particulars pertaining to the change", the term "any of the items of Article 40, paragraph (1)" in paragraph (2) of that Article is replaced with "any of the items of Article 40, paragraph (1) (excluding items (i), (ii) and (vi) through (xi))", the term the "following particulars" in Article 39, paragraph (1) is replaced with the "particulars pertaining to the change", and the term "any of the following items" in Article 40, paragraph (1) is replaced with "any of the items of Article 40, paragraph (1) (excluding items (i), (ii) and (vi) through (xi))".

When a funds transfer service provider intends to make any changes that are specified by Cabinet Office Order as those that are likely to weaken the protection of users of funds transfer services or hinder the proper and steady provision of funds transfer services (referred to "changes to the details of specified business, etc." in the following paragraph) which are the particulars set forth in Article 38, paragraph (1), item (viii), the funds transfer service provider must notify the Prime Minister to that effect in advance.

When any of the particulars set forth in the items of Article 38, paragraph (1) (excluding changes to the details of the specified business, etc., and in the case of a change in the particulars set forth in item (vii) of that paragraph, limited to the change due to the discontinuation of the whole funds transfer service of the same category) are changed, the funds transfer service provider must notify the Prime Minister to that effect without delay.

When the Prime Minister accepts a notification under the provisions of the preceding two paragraphs, the Minister must register the informed particulars in the register of funds transfer service providers.

A funds transfer service provider must not have another person provide the funds transfer services in the name of the funds transfer service provider.

A funds transfer service provider must make security deposits for providing funds transfer services to the official depository nearest to its head office (in cases of a funds transfer service provider that is a foreign funds transfer service provider, its principal business office in Japan; the same applies in Article 48) for each category of funds transfer services set forth in the following items as specified therein in accordance with the category of funds transfer service:

type I funds transfer services:make security deposits in an amount equivalent to an amount not less than the amount required for security deposit for providing funds transfer services as of each business day during a period set by the funds transfer service provider within the period specified by Cabinet Office Order not exceeding one week from the relevant business day; or

type II funds transfer services or type III funds transfer services:make security deposits in an amount equivalent to an amount not less than the maximum amount of the amount required for security deposit for providing funds transfer services pertaining to type II funds transfer services or type III funds transfer services during a period not exceeding one week set by the funds transfer service provider for each category of funds transfer services, for the respective periods, during a period set by the funds transfer service provider within the period specified by Cabinet Office Order not exceeding one week from the last day of the former period (referred to as the "Base Date" in Article 45-2, paragraphs (4) and (5) and Article 47, item (i)).

The term "amount required for security deposit for providing funds transfer services" as used in the items of the preceding paragraph means the total amount of outstanding obligations in the process of being transferred (meaning an amount, calculated pursuant to the provisions of Cabinet Office Order, of obligations borne by a funds transfer service provider in relation to funds transfer transactions carried out by the funds transfer service provider; hereinafter the same applies in this Chapter) as of each business day for each category of funds transfer service and an amount calculated pursuant to the provisions of Cabinet Office Order as the amount of costs pertaining to the procedure for the fulfillment of the right specified in Article 59, paragraph (1) (for type III funds transfer services by a funds transfer service provider to whom the provisions of Article 45-2, paragraph (1) are applied, the total amount obtained by deducting the amount of outstanding obligations in the process of being transferred pertaining to type III funds transfer services as of each business day multiplied by the rate of management by bank deposits or savings specified in that paragraph from the amount of outstanding obligations in the process of being transferred as of each of those business days, and the amount calculated pursuant to the provisions of Cabinet Office Order as the amount of costs pertaining to the procedure for the fulfillment of the right specified in Article 59, paragraph (1)); provided, however, that if the total is not more than the amount specified by Cabinet Order as being necessary for ensuring the performance of obligations borne by a small-scale funds transfer service provider in relation to funds transfer transactions carried out by the small-scale funds transfer service provider, the amount required for security deposit for providing funds transfer services is the amount specified by the relevant Cabinet Order.

National government bond certificates, local government bond certificates or other bond certificates specified by Cabinet Office Order (including transfer bonds prescribed in Article 278, paragraph (1) of the Act on Book-Entry Transfer of Corporate Bonds and Shares; the same applies in Article 45, paragraph (3)) may be deposited to fulfill the security deposits for providing funds transfer services requirement. In this case, the appraised value of those bond certificates is determined pursuant to the provisions of Cabinet Office Order.

When a funds transfer service provider concludes a guarantee contract for security deposits for providing funds transfer services (meaning a contract in which a deposit-taking institution satisfying the requirements specified by Cabinet Order or any other person specified by Cabinet Order (hereinafter referred to as a "person qualified as a performance guarantor" in this Chapter) promises that security deposits for providing funds transfer services will be made on behalf of the funds transfer service provider in response to an order by the Prime Minister; the same applies in this Chapter) for each category of funds transfer services that it provides and has notified the Prime Minister to that effect, pursuant to the provisions of Cabinet Order, it may choose not to make all or part of the security deposits for providing funds transfer services for the relevant category of funds transfer services with regard to the secured amount (meaning the amount of money to be deposited under the guarantee contract for security deposits for providing funds transfer services; hereinafter the same applies in this Chapter) limited to the period during which the contract remains in force.

If a funds transfer service provider concludes a trust agreement for security deposits for providing funds transfer services with a trust company, etc. (meaning a trust agreement whose purpose is to apply trust property to security deposits for providing funds transfer services in response to an order by the Prime Minister, which states that the trust company, etc. carries out necessary acts including the management of trust property for achieving the purpose of the trust; the same applies hereinafter in this Chapter) for each category of funds transfer service that it provides and has notified the Minister to that effect, it may choose not to make all or part of the security deposits for providing funds transfer services for the relevant category of funds transfer service with regard to the amount of trust property during the period in which the trust property is entrusted pursuant to the trust agreement for security deposits for providing funds transfer services.

A trust agreement for security deposits for providing funds transfer services must provide the following particulars:

the beneficiaries of the trust agreement for security deposits for providing funds transfer services are to be the users of funds transfer transactions carried out by the funds transfer service provider who is the party to the trust agreement for security deposits for providing funds transfer services (limited to funds transfer transactions for the category of funds transfer service pertaining to the trust agreement for security deposits for providing funds transfer services);

an agent of the beneficiaries is appointed;

a trust company, etc. realizes the trust property and deposits the proceeds thereof in response to an order by the Prime Minister; and

other particulars specified by Cabinet Office Order.

The types of the trust properties entrusted pursuant to a trust agreement for security deposits for providing funds transfer services are to be limited to money, bank deposits and savings (limited to those specified by Cabinet Office Order), or national government bond certificates, local government bond certificates or other bond certificates specified by Cabinet Office Order. In this case, the appraised value of those bond certificates is determined pursuant to the provisions of Cabinet Office Order.

When a funds transfer service provider (limited to a person providing type III funds transfer services) has submitted a written notice containing the following particulars to the Prime Minister, pursuant to the provisions of Cabinet Office Order, it may choose not to make all or part of the security deposits for providing type III funds transfer services on or after the day set forth in item (i). In this case, the funds transfer service provider must manage money in the amount equivalent to the amount not less than the amount obtained by multiplying the amount of outstanding obligations in the process of being transferred pertaining to type III funds transfer services as of each business day by the rate set forth in item (ii) (when the rate is changed, the rate that has been changed; hereinafter referred to as the "rate for managing bank deposits or savings" in this Article and Article 59, paragraph (1)) by using the method for managing bank deposits or savings specified in item (i):

the day on which the management of money in the amount equivalent to all or part of the amount of outstanding obligations in the process of being transferred pertaining to type III funds transfer services commences as of each business day by the method for managing bank deposits or savings (limited to bank deposits or savings, which is obvious from the name of the account holder, that the money must be managed pursuant to the provisions of this paragraph) or by another method specified by Cabinet Office Order (hereinafter referred to as the "method for managing bank deposits or savings" in this Article and Article 53, paragraph (2), item (ii));

the percentage of the amount of outstanding obligations in the process of being transferred pertaining to type III funds transfer services that is to be managed by the method for managing bank deposits or savings to the total amount thereof; and

other particulars specified by Cabinet Office Order.

A funds transfer service provider to whom the provisions of the preceding paragraph are applied must undergo a periodic audit by a certified public accountant (including foreign certified public accountant specified in Article 16-2, paragraph (5) of the Certified Public Accountants Act (Act No. 103 of 1948); the same applies hereinafter) or by an audit corporation, with regard to the aspects of management by using the method for managing bank deposits or savings, pursuant to the provisions of Cabinet Office Order.

When a funds transfer service provider to whom the provisions of paragraph (1) are applied intends to change the rate of management by bank deposits or savings or other particulars specified by Cabinet Office Order, the funds transfer service provider must submit a written notice containing the day on which the change is to be made and other particulars specified by Cabinet Office Order to the Prime Minister in advance, pursuant to the provisions of Cabinet Office Order.

A change to lower the rate for managing bank deposits or savings may be made only in the case where the total amount of security deposits for providing funds transfer services, the secured amount, the amount of trust property specified in paragraph (1) of the preceding Article, the performance guarantor's debt assumption amount specified in paragraph (1) of the following Article, the performance guarantor's guarantee amount specified in Article 45-4, paragraph (1) and the amount of the trust for repayment in place of security deposits specified in Article 45-5, paragraph (1) (or, if that amount of the trust for repayment in place of security deposits exceeds the amount of trust property held in trust under the trust agreement for repayment in place of security deposits for providing funds transfer services prescribed in that paragraph, that amount of trust property) pertaining to type III funds transfer services as of the day on which the change is to be made that is stated in the written notice referred to in the preceding paragraph is the amount required for deposit pertaining to type III funds transfer services (meaning the amount of security deposits for providing funds transfer services that a funds transfer service provider to whom the provisions of paragraph (1) are applied must deposit for type III funds transfer services it provides, when making the relevant change, under the provisions of Article 43, paragraph (1)) as of the base date immediately preceding that day, or more.

A funds transfer service provider to whom the provisions of paragraph (1) are applied may terminate the application of the provisions of that paragraph by submitting a written notice containing the day on which the application of the provisions of that paragraph ends (hereinafter referred to as the "day on which the management by bank deposits or savings ends" in this paragraph) and other particulars specified by Cabinet Office Order to the Prime Minister, pursuant to the provisions of Cabinet Office Order; provided, however, that this does not apply when the total amount of security deposits for providing funds transfer services, the secured amount, the amount of trust property specified in paragraph (1) of the preceding Article, the performance guarantor's debt assumption amount specified in paragraph (1) of the following Article, the performance guarantor's guarantee amount specified in Article 45-4, paragraph (1) and the amount of the trust for repayment in place of security deposits specified in Article 45-5, paragraph (1) (or, if that amount of the trust for repayment in place of security deposits exceeds the amount of trust property held in trust under the trust agreement for repayment in place of security deposits for providing funds transfer services prescribed in that paragraph, that amount of trust property) pertaining to type III funds transfer services as of the day on which the management by bank deposits or savings ends is less than the amount required for deposit pertaining to type III funds transfer services (meaning the amount of security deposits for providing funds transfer services that the funds transfer service provider must deposit for type III funds transfer services it provides, when terminating the application of the provisions of paragraph (1), under the provisions of Article 43, paragraph (1)) as of a base date immediately preceding that day on which the management by bank deposits or savings ends.

When a funds transfer service provider has concluded a performance guarantor's debt assumption contract (meaning a contract in which a person qualified as a performance guarantor assumes the amount of all or part of the obligations that the funds transfer service provider bears to all or part of the users of that category of funds transfer services with regard to funds transfer transactions pertaining to those funds transfer services, when a petition for commencement of bankruptcy proceedings, etc. is filed against the funds transfer service provider; the same applies in this Chapter) with a person qualified as a performance guarantor for each category of funds transfer services that it provides and has notified the Prime Minister to that effect, it may choose not to make all or part of the security deposits for providing funds transfer services for the relevant category of funds transfer services with regard to the amount of obligations that the person qualified as a performance guarantor is to assume under that performance guarantor's debt assumption contract (hereinafter referred to as the "performance guarantor's debt assumption amount" in this Chapter), limited to the period during which that performance guarantor's debt assumption contract remains in force.

A performance guarantor's debt assumption contract must include the following particulars:

in response to an order by the Prime Minister, a person qualified as a performance guarantor deposits all or part of the performance guarantor's debt assumption amount in lieu of the assumption of obligations to users of funds transfer services under the performance guarantor's debt assumption contract or the performance of the obligations so assumed; and

other particulars specified by Cabinet Office Order.

When a funds transfer service provider has entrusted a person qualified as a performance guarantor, for each category of funds transfer services that it provides, with the conclusion, with the users of those funds transfer services, of a performance guarantor's guarantee contract (meaning a contract in which the person qualified as a performance guarantor guarantees all or part of the obligations that the funds transfer service provider bears to those users with regard to funds transfer transactions pertaining to that category of funds transfer services, when a petition for commencement of bankruptcy proceedings, etc. is filed against the funds transfer service provider; the same applies in this Chapter), and has notified the Prime Minister that, based on that entrustment, a performance guarantor's guarantee contract has been concluded between the person qualified as a performance guarantor and those users, it may choose not to make all or part of the security deposits for providing funds transfer services for the relevant category of funds transfer services with regard to the amount of the guarantee obligations that the person qualified as a performance guarantor is to bear to those users under that performance guarantor's guarantee contract (hereinafter referred to as the "performance guarantor's guarantee amount" in this Chapter), limited to the period during which that performance guarantor's guarantee contract remains in force.

A performance guarantor's guarantee contract must include the following particulars:

in response to an order by the Prime Minister, a person qualified as a performance guarantor deposits all or part of the performance guarantor's guarantee amount in lieu of the performance of the guarantee obligations to users of funds transfer services under the performance guarantor's guarantee contract; and

other particulars specified by Cabinet Office Order.

When a funds transfer service provider has concluded a trust agreement for repayment in place of security deposits for providing funds transfer services (meaning a trust agreement whose purpose is to apply the trust property, when a petition for commencement of bankruptcy proceedings, etc. is filed against the funds transfer service provider, to the repayment of all or part of the obligations that the funds transfer service provider bears to all or part of the users of that category of funds transfer services with regard to funds transfer transactions pertaining to those funds transfer services, and which states that the trust company, etc. carries out necessary acts including the management of the trust property for achieving that purpose; the same applies in this Chapter) with a trust company, etc. for each category of funds transfer services that it provides and has notified the Prime Minister to that effect, it may choose not to make all or part of the security deposits for providing funds transfer services for the relevant category of funds transfer services with regard to the amount of obligations that the trust property is to be applied to repay under that trust agreement for repayment in place of security deposits for providing funds transfer services (hereinafter referred to as the "amount of the trust for repayment in place of security deposits" in this Chapter; or, if that amount of the trust for repayment in place of security deposits exceeds the amount of the trust property, the amount of that trust property), limited to the period during which the trust property is held in trust under that trust agreement for repayment in place of security deposits for providing funds transfer services.

A trust agreement for repayment in place of security deposits for providing funds transfer services must include the following particulars:

the beneficiaries are to be the users of funds transfer transactions carried out by the funds transfer service provider that is the party to the trust agreement for repayment in place of security deposits for providing funds transfer services (limited to funds transfer transactions for the category of funds transfer services pertaining to the trust agreement for repayment in place of security deposits for providing funds transfer services);

an agent of the beneficiaries is appointed;

in response to an order by the Prime Minister, a trust company, etc. realizes the trust property and deposits all or part of the amount of the trust for repayment in place of security deposits (or, if that amount of the trust for repayment in place of security deposits exceeds the amount realized from the trust property held in trust under the trust agreement for repayment in place of security deposits for providing funds transfer services, the amount realized from that trust property), in lieu of repayment to the beneficiaries under the trust agreement for repayment in place of security deposits for providing funds transfer services; and

other particulars specified by Cabinet Office Order.

The provisions of Article 45, paragraph (3) apply mutatis mutandis to the trust property held in trust under a trust agreement for repayment in place of security deposits for providing funds transfer services.

When the Prime Minister finds it necessary for the protection of the interests of users of funds transfer services, the Minister may order the persons set forth in the following items to deposit all or part of the amounts specified in those respective items.

a funds transfer service provider that has concluded a guarantee contract for security deposits for providing funds transfer services, or the counterparty to that guarantee contract for security deposits for providing funds transfer services: the secured amount;

a funds transfer service provider that has concluded a trust agreement for security deposits for providing funds transfer services, or the counterparty to that trust agreement for security deposits for providing funds transfer services: the amount realized from the trust property held in trust under the trust agreement for security deposits for providing funds transfer services;

a funds transfer service provider that has concluded a performance guarantor's debt assumption contract, or the counterparty to that performance guarantor's debt assumption contract: the performance guarantor's debt assumption amount;

a funds transfer service provider with respect to whose obligations in relation to funds transfer transactions pertaining to the funds transfer services that it provides a performance guarantor's guarantee contract has been concluded, or the person qualified as a performance guarantor that has concluded that performance guarantor's guarantee contract: the performance guarantor's guarantee amount;

a funds transfer service provider that has concluded a trust agreement for repayment in place of security deposits for providing funds transfer services, or the counterparty to that trust agreement for repayment in place of security deposits for providing funds transfer services: the amount of the trust for repayment in place of security deposits (or, if that amount of the trust for repayment in place of security deposits exceeds the amount realized from the trust property held in trust under the trust agreement for repayment in place of security deposits for providing funds transfer services, the amount realized from that trust property).

All or part of the security deposits for providing only one type of funds transfer service may be recovered, pursuant to the provisions of Cabinet Order, if any of the requirements specified in the following items are satisfied:

when the amount required for deposit (meaning the amount of security deposits for providing funds transfer services which must be made by a funds transfer service provider, pursuant to the provisions of Article 43, paragraph (1)) as of the immediately preceding base date (for type I funds transfer services, as of each business day) is less than the total amount of security deposits for providing funds transfer services, the secured amount, the amount of trust property specified in Article 45, paragraph (1), the performance guarantor's debt assumption amount, the performance guarantor's guarantee amount and the amount of the trust for repayment in place of security deposits (or, if that amount of the trust for repayment in place of security deposits exceeds the amount of trust property held in trust under the trust agreement for repayment in place of security deposits for providing funds transfer services, that amount of trust property) as of that base date;

when the procedure for the fulfillment of the right specified in Article 59, paragraph (1) is completed; and

the case specified by Cabinet Order, as the case in which the performance of obligations borne in relation to funds transfer transactions is completed.

Beyond what is provided for in this Section, a change of official depository for security deposits for providing funds transfer services due to the change of the location of the head office of a funds transfer service provider and other particulars necessary for making the security deposits for providing funds transfer services are prescribed by Cabinet Office Order and Ministry of Justice Order.

A funds transfer service provider must, pursuant to the provisions of Cabinet Office Order, take necessary measures for preventing leakage, loss, or damage of information pertaining to the funds transfer services and otherwise ensuring safe control of the handling of that information.

If a funds transfer service provider entrusts (including the case under multi-tier entrustment arrangements) part of the funds transfer service to a third party, the funds transfer service provider must provide guidance to the third party to whom the relevant business has been entrusted and take other measures necessary for ensuring the operation of the business in a proper and steady manner pursuant to the provisions of Cabinet Office Order.

A funds transfer service provider must, pursuant to the provisions of Cabinet Office Order, provide explanation to prevent users from mistaking its business for funds transfer transactions carried out by a Deposit-Taking Institution, and provide information about fees and other terms and conditions of contracts related to the funds transfer services and take measures not to hold part of funds received from users that is found unlikely to be used for funds transfer transactions or other measures necessary for protecting the users of funds transfer services and ensuring the proper and secure conduct of funds transfer services.

A funds transfer service provider (limited to a person providing type I funds transfer services; the same applies in the following paragraph) must not bear obligations in relation to funds transfer transactions (limited to funds transfer transactions pertaining to type I funds transfer services; the same applies in the following paragraph) for which the amount of funds to be transferred, the day on which the funds are transferred, and other particulars specified by Cabinet Office Order are not clear to users of type I funds transfer services.

A funds transfer service provider must not bear obligations in relation to funds transfer transactions beyond the period necessary for processing the transfer of funds or another period specified by Cabinet Office Order.

A funds transfer service provider (limited to a person providing type III funds transfer services) must not bear obligations (limited to obligations borne in relation to funds transfer transactions pertaining to type III funds transfer services) in an amount exceeding the amount for users of type III funds transfer services specified by Cabinet Order.

A funds transfer service provider must take the measures specified in the following items according to the categories of cases set forth therein:

if one or more designated dispute resolution organizations for funds transfer services (meaning designated dispute resolution organizations for which the category of dispute resolution services is a funds transfer service; hereinafter the same applies in this Article) exist:measures to conclude a basic contract for execution of procedures with a designated dispute resolution organization for funds transfer service (meaning a basic contract for execution of procedures prescribed in Article 99, paragraph (1), item (viii); the same applies in the following paragraph) pertaining to the funds transfer service; or

if no designated dispute resolution organization for funds transfer services exists:complaint processing measures and dispute resolution measures pertaining to the funds transfer service.

If a funds transfer service provider implements measures to conclude a basic contract for execution of procedures pursuant to the provisions of the preceding paragraph, the funds transfer service provider must publicly announce the trade name or other name of the designated dispute resolution organization for funds transfer services that is the counterparty to the basic contract for execution of procedures.

The provisions of paragraph (1) do not apply during the period specified in the following items according to the respective categories of cases prescribed therein:

if a funds transfer service provider who initially fell under paragraph (1), item (i) has come to fall under paragraph (1), item (ii):A period specified by the Prime Minister as that necessary for taking measures specified in paragraph (1), item (ii) when authorization is granted for the discontinuation of the dispute resolution services referred to in Article 52-83, paragraph (1) of the Banking Act as applied mutatis mutandis pursuant to Article 101, paragraph (1) following the deemed replacement of terms or designation is revoked pursuant to the provisions of Article 100, paragraph (1);

if a funds transfer service provider falls under paragraph (1), item (i), when authorization is granted for the discontinuation of the dispute resolution services by the Designated Dispute Resolution Organization for Funds Transfer Services mentioned in that item of Article 52-83, paragraph (1) of the Banking Act as applied mutatis mutandis pursuant to Article 101, paragraph (1) following the replacement of terms or the designation granted to the Designated Dispute Resolution Organization for Funds Transfer Services under the provision of Article 99, paragraph (1) is revoked pursuant to the provisions of Article 100, paragraph (1) (excluding the case specified in the preceding item):A period specified by the Prime Minister as the period necessary for taking measures specified in paragraph (1), item (i) at the time of the authorization or revocation; or

if a funds transfer service provider who initially fell under paragraph (1), item (ii) has come to fall under paragraph (1), item (i):A period specified by the Prime Minister as the period necessary for taking measures specified in paragraph (1), item (i) when designation is granted under the provisions of Article 99, paragraph (1).

The term "complaint processing measures" as used in paragraph (1), item (ii) means having a person specified by Cabinet Office Order as one who has expert knowledge and experience with regard to consultation regarding complaints on consumer affairs that the consumer made against the service provider or in other areas of consumer affairs, to provide advice or guidance to employees or other workers who engage in the business of processing complaints from the users or any other measures specified by Cabinet Office Order as similar thereto.

A funds transfer service provider must, pursuant to the provisions of Cabinet Office Order, prepare and maintain the books and documents on its funds transfer service.

A funds transfer service provider must, pursuant to the provisions of Cabinet Office Order, prepare a written report on its funds transfer services for each business year and submit it to the Prime Minister.

In addition to the written reports prescribed in the preceding paragraph, a funds transfer service provider must prepare a written report specified in the following items in accordance with the respective types of funds transfer service providers set forth therein for each period specified by Cabinet Office Order not exceeding six months (simply referred to as the "period" in item (ii)), and submit it to the Prime Minister, pursuant to the provisions of Cabinet Office Order:

funds transfer service providers other than those set forth in the following item: a written report on the amount of outstanding obligations in the process of being transferred, and the status of security deposits for providing funds transfer services, guarantee contracts for security deposits for providing funds transfer services, trust agreements for security deposits for providing funds transfer services, performance guarantor's debt assumption contracts, performance guarantor's guarantee contracts, or trust agreements for repayment in place of security deposits for providing funds transfer services; or

funds transfer service providers to whom the provisions of Article 45-2, paragraph (1) were applied in the immediately preceding period:the written report specified in the preceding item and a written report on the status of management by the method of management by bank deposits or savings pertaining to type III funds transfer services.

Documents specified in the following items in accordance with the respective types of funds transfer service providers set forth therein must be attached to the written report referred to in the preceding two paragraphs:

a person set forth in item (i) of the preceding paragraph:documents concerning finance and other documents specified by Cabinet Office Order; or

a person set forth in item (ii) of the preceding paragraph:documents concerning finance, an audit report prepared by a certified public accountant or audit corporation regarding these documents, and other documents specified by Cabinet Office Order.

When the Prime Minister finds it necessary for the provision of funds transfer service in a proper and steady manner, the Minister may order a funds transfer service provider to submit reports or materials that can be used as reference for its business or property, or have officials enter the business office or other facility of that funds transfer service provider, ask questions about the status of its business or property or inspect its books and documents or other items.

When the Prime Minister finds it particularly necessary for the provision of funds transfer service in a proper and steady manner, the Minister may order a person to whom business has been entrusted by the funds transfer service provider (including persons to whom the business has been entrusted by the entrusted person (including those under multi-tier entrustment arrangements); hereinafter the same applies in this Article and Article 60) to submit reports or materials that can be used as reference for the business or property of the funds transfer service provider, or have officials enter the facility of the person to whom business has been entrusted by the funds transfer service provider, ask questions about the status of the business or property of the funds transfer service provider or inspect its books and documents or other items, to the extent necessary for the order.

A person to whom business has been entrusted by a funds transfer service provider referred to in the preceding paragraph may refuse the submission of reports or materials, or the inquiry or inspection under the provisions of that paragraph if there are reasonable grounds for doing so.

When the Prime Minister finds it necessary for the provision of funds transfer service in a proper and steady manner, the Minister may order a funds transfer service provider to take necessary measures to improve the operation of its business or its financial status or other measures necessary for the purpose of supervision, to the extent necessary for the order.

When a funds transfer service provider falls under any of the following items, the Prime Minister may revoke its registration referred to in Article 37 or order the funds transfer service provider to suspend all or part of its funds transfer service, by setting a period for suspension not exceeding six months:

when the funds transfer service provider falls under any of the items of Article 40, paragraph (1);

when the funds transfer service provider has been registered pursuant to the provisions of Article 37 or the change referred to in Article 41, paragraph (1) has been registered through wrongful means;

when the funds transfer service provider has provided type I funds transfer service not in accordance with the authorized business implementation plan referred to in Article 40-2, paragraph (1); or

when the funds transfer service provider violates this Act, an order under this Act, or the requirements for a disposition or authorization under these Act, or order.

If the Prime Minister is unable to ascertain the locations of business offices of a funds transfer service provider or the whereabouts of the company director or executive officer representing the funds transfer service provider (in cases of a funds transfer service provider that is a foreign funds transfer service provider, the representative person in Japan), the Prime Minister, pursuant to the provisions of Cabinet Office Order, may issue public notice of that fact and revoke the registration of the funds transfer service provider under Article 37 if no application is made by the service provider after thirty days have passed since the day of the public notice.

The provisions of Chapter III of the Administrative Procedure Act do not apply to the disposition under the provisions of the preceding paragraph.

When the Prime Minister revokes the registration referred to in Article 37 pursuant to provisions of paragraph (1) or (2) of the preceding Article or when the registration referred to in Article 37 has ceased to be effective pursuant to the provisions of Article 61, paragraph (2), the Minister must delete the registration.

When the Prime Minister implements a disposition under the provisions of Article 56, paragraph (1) or (2), the Minister must give public notice to that effect pursuant to the provisions of Cabinet Office Order.

A funds transfer service provider that provides two or more categories of funds transfer services, and for which the calculation period, the base date, etc. and the due date for deposit, for each category of funds transfer services, relating to the making of security deposits for providing funds transfer services under the provisions of Article 43, paragraph (1) are the same for all or part of the categories of funds transfer services that it provides, may make a lump sum deposit for the categories of funds transfer services set forth in item (ii) (hereinafter referred to as "funds transfer services under the special provisions" in this paragraph and the following paragraph) on or after the day set forth in item (i) (referred to as the "day on which the application of special provisions commences" in the following paragraph), if it has submitted a written notice containing the following particulars to the Prime Minister, pursuant to the provisions of Cabinet Office Order. In this case, with regard to the application of the provisions of Article 43, paragraphs (1) and (2), Article 44, Article 45, paragraph (1) and paragraph (2), item (i), Article 45-3, paragraph (1), Article 45-4, paragraph (1), Article 45-5, paragraph (1) and paragraph (2), item (i), Article 47 and paragraph (1) of the following Article to funds transfer services under the special provisions, the phrase "for each category of funds transfer services" in Article 43, paragraph (1) is deemed to be deleted and the phrase "in accordance with the category of funds transfer service" in that paragraph is deemed to be replaced with "in accordance with the category of funds transfer service; provided, however, that if the total amount required for security deposit for providing funds transfer services pertaining to the funds transfer services provided by the funds transfer service provider does not exceed the amount specified by Cabinet Order as being necessary for ensuring the performance of obligations borne by a small-scale funds transfer service provider in relation to funds transfer transactions carried out by the small-scale funds transfer service provider, the funds transfer service provider must make security deposits for providing funds transfer services in an amount equivalent to the amount specified by that Cabinet Order or more to the official depository nearest to its head office"; in paragraph (2) of that Article, the phrase "; provided, however, that if the total is not more than the amount specified by Cabinet Order as being necessary for ensuring the performance of obligations borne by a small-scale funds transfer service provider in relation to funds transfer transactions carried out by the small-scale funds transfer service provider, the amount required for security deposit for providing funds transfer services is the amount specified by the relevant Cabinet Order" is deemed to be deleted; in Article 44, the phrase "guarantee contract for security deposits for providing funds transfer services (...) for each category of funds transfer services that it provides" is deemed to be replaced with "guarantee contract for security deposits for providing funds transfer services" and the phrase "for the relevant category of funds transfer services" is deemed to be deleted; in Article 45, paragraph (1), the phrases "for each category of funds transfer service that it provides" and "for the relevant category of funds transfer service" are deemed to be deleted, and in Article 45, paragraph (2), item (i), the phrase "(limited to funds transfer transactions for the category of funds transfer service pertaining to the trust agreement for security deposits for providing funds transfer services)" is deemed to be deleted; in Article 45-3, paragraph (1), the phrase "performance guarantor's debt assumption contract (...) with a person qualified as a performance guarantor for each category of funds transfer services that it provides" is deemed to be replaced with "performance guarantor's debt assumption contract (...) with a person qualified as a performance guarantor", the phrase "for the relevant category of funds transfer services" is deemed to be deleted and the phrase "that category of funds transfer services" is deemed to be replaced with "the funds transfer services that it provides"; in Article 45-4, paragraph (1), the phrase "a person qualified as a performance guarantor, for each category of funds transfer services that it provides, with the conclusion, with the users of those funds transfer services" is deemed to be replaced with "a person qualified as a performance guarantor, with the conclusion, with the users of the funds transfer services provided by the funds transfer service provider", the phrase "funds transfer transactions pertaining to that category of funds transfer services" is deemed to be replaced with "funds transfer transactions pertaining to the funds transfer services that it provides", and the phrase "for the relevant category of funds transfer services" is deemed to be deleted; in Article 45-5, paragraph (1), the phrases "for each category of funds transfer services that it provides" and "for the relevant category of funds transfer services" are deemed to be deleted and the phrase "that category of funds transfer services" is deemed to be replaced with "the funds transfer services that it provides", and in paragraph (2), item (i) of that Article, the phrase "(limited to funds transfer transactions for the category of funds transfer services pertaining to the trust agreement for repayment in place of security deposits for providing funds transfer services)" is deemed to be deleted; in Article 47, the phrase "security deposits for providing only one type of funds transfer service" is deemed to be replaced with "security deposits for providing funds transfer services", and in item (i) of that Article, the phrase "Article 43, paragraph (1)" is deemed to be replaced with "the main clause of Article 43, paragraph (1)"; in paragraph (1) of the following Article, the phrase "for a single category of funds transfer services provided by" is deemed to be replaced with "carried out by" and the phrase "security deposits for providing that category of funds transfer services" is deemed to be replaced with "security deposits for providing funds transfer services"; and any other necessary technical replacement of terms is specified by Cabinet Order.

the day to commence a lump sum deposit;

two or more types of funds transfer services for which a lump sum deposit is to be made (limited to the types of services for which the calculation period, the base date, etc. and the due date for deposit are the same); and

other particulars specified by Cabinet Office Order.

Security deposits for providing funds transfer services made by a funds transfer service provider that has submitted a written notice referred to in the preceding paragraph has made for each of the funds transfer services under the special provisions pursuant to the provisions of Article 43, paragraph (1) as of the day on which the special provisions commence to apply are deemed to be security deposits for providing funds transfer services made by the funds transfer service provider pursuant to the provisions of Article 43, paragraph (1) as applied following the deemed replacement of terms pursuant to the provisions of the preceding paragraph.

When a funds transfer service provider that has submitted a written notice referred to in paragraph (1) submits a written notice containing the type of funds transfer service for which it terminates a lump sum deposit (hereinafter referred to as the "funds transfer services for which the application of special provisions is terminated" in this paragraph and the following paragraph), the day on which it terminates a lump sum deposit for the funds transfer services for which the application of special provisions is terminated (hereinafter referred to as the "day on which the application of special provisions is terminated" in this paragraph and the following paragraph), and other particulars specified by Cabinet Office Order to the Prime Minister, pursuant to the provisions of Cabinet Office Order, the provisions of paragraph (1) do not apply to the funds transfer services for which the application of special provisions is terminated on or after the day on which the application of special provisions is terminated.

Security deposits for providing funds transfer services made by a funds transfer service provider that submitted a written notice referred to in the preceding paragraph pursuant to the provisions of Article 43, paragraph (1) as applied following the deemed replacement of terms pursuant to the provisions of paragraph (1) as of the day on which the application of special provisions is terminated (including security deposits for providing funds transfer services that are deemed to have been made pursuant to the provisions of Article 43, paragraph (1) as applied following the deemed replacement of terms pursuant to the provisions of paragraph (1), pursuant to the provisions of paragraph (2)) are deemed to be security deposits for providing funds transfer services made by the funds transfer service provider for each of the funds transfer services for which the application of special provisions is terminated, pursuant to the provisions of Cabinet Office Order, in accordance with the amount required for deposit for each of the funds transfer services for which the application of special provisions is terminated (meaning the amount of security deposits made by the funds transfer service provider, when intending to terminate a lump sum deposit for funds transfer services for which the application of special provisions is terminated, must deposit for each of those funds transfer services for which the application of special provisions is terminated pursuant to the provisions of Article 43, paragraph (1)) as of the base date, etc. immediately preceding the day on which the application of special provisions is terminated.

In this Article, the terms set forth in the following items mean as specified respectively therein:

calculation period:for type I funds transfer services, means one business day, and for type II funds transfer services or type III funds transfer services, means a period set by a funds transfer service provider for the respective types of services not exceeding one week specified in Article 43, paragraph (1), item (ii);

base date, etc.:for type I funds transfer services, means each business day, and for type II funds transfer services or type III funds transfer services, means the base date specified in Article 43, paragraph (1), item (ii);

due date for deposit:for type I funds transfer services, means the last day of the period set by a funds transfer service provider within the period specified by Cabinet Office Order not exceeding one week from each business day specified in Article 43, paragraph (1), item (i), and for type II funds transfer services or type III funds transfer services, means last day of the period set by a funds transfer service provider for each type of funds transfer services within the period specified by Cabinet Office Order not exceeding one week from the base date specified in item (ii) of that paragraph; and

a lump sum deposit:means making security deposits for providing funds transfer services in a lump sum through the same procedures.

A creditor of obligations borne by a funds transfer service provider in relation to funds transfer transactions for a single category of funds transfer services provided by the funds transfer service provider (excluding the case where a person qualified as a performance guarantor that has performed obligations under a performance guarantor's debt assumption contract or a performance guarantor's guarantee contract subrogates to that creditor pursuant to the provisions of Article 499 of the Civil Code (Act No. 89 of 1896)) has the right to receive, in preference over other creditors, payments for the return of security deposits for providing that category of funds transfer services; provided, however, that creditors of obligations that a funds transfer service provider to whom the provisions of Article 45-2, paragraph (1) are applied bears in relation to the funds transfer transactions (limited to funds transfer transactions pertaining to type III funds transfer services) carried out thereby are to have that right, with respect to the claims pertaining to those obligations, up to the amount obtained by deducting the amount obtained by multiplying the amount of the claim by the rate for managing bank deposits or savings from the amount of the claim.

In the cases falling under any of the following items, when the Prime Minister finds it necessary for the protection of the interests of users of funds transfer services, the Minister must give public notice to the effect that persons holding the right specified in the preceding paragraph must file their claims with the Prime Minister within a certain period of not less than sixty days and that they are excluded from the procedure for the fulfillment of the right to the return of the security deposits for providing funds transfer services pertaining to the public notice unless they file their claims within the notified period and take other measures necessary for the fulfillment of the right prescribed in that paragraph:

when a petition is filed for the fulfillment of the right specified in the preceding paragraph; or