Payment Services Act

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.