Payment Services Act

The provisions of Chapter III, Section 1, Subsection 5 (excluding Article 34-2, paragraphs (6) through (8) and Article 34-3, paragraphs (5) and (6)), Section 2, Subsection 1 of that Chapter (excluding Articles 35 through 36-4, Article 37-2, Article 37-3, paragraph (3), Article 37-5, Article 37-7, Article 38, items (vii) and (viii), Article 38-2, Article 39, and Articles 40-2 through 40-7) and Article 45 (excluding items (iii) and (iv)) of the Financial Instruments and Exchange Act (referred to as the "provisions of the Financial Instruments and Exchange Act" in the following paragraph) apply mutatis mutandis to an electronic payment instruments service provider that engages in the electronic payment instruments-related business pertaining to a specified contract for electronic payment instruments transaction (meaning a contract for carrying out electronic payment instruments-related business pertaining to what is specified by Cabinet Office Order as electronic payment instruments for which the prices are likely to fluctuate due to fluctuations in indicators such as value of currencies; the same applies in that paragraph). In this case, except in cases prescribed in that paragraph, the term "contract for financial instruments transaction" and the term "customer" in these provisions are deemed to be replaced with "specified contract for electronic payment instruments transaction" and "user", respectively.

Pursuant to the provisions of Cabinet Office Order, an electronic payment instruments service provider must prepare and preserve the books and documents on its electronic payment instruments services.

Pursuant to the provisions of Cabinet Office Order, an electronic payment instruments service provider must prepare a written report on its electronic payment instruments services for each business year and submit it to the Prime Minister.

In addition to the written reports specified in the preceding paragraph, pursuant to the provisions of Cabinet Office Order, an electronic payment instruments service provider (limited to one who engages in the management of electronic payment instruments) must prepare a written report on the volumes of users' electronic payment instruments under the management in connection with the electronic payment instruments services and other particulars concerning the management of the electronic payment instruments for each period specified by Cabinet Office Order, and submit it to the Prime Minister.

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 must be attached to the written report referred to in paragraph (1).

Documents proving the volumes of users' electronic payment instruments under the management in connection with the electronic payment instruments services and other documents specified by Cabinet Office Order must be attached to the written report referred to in paragraph (2).

When the Prime Minister finds it necessary for the provision of electronic payment instruments services in a proper and steady manner, the Minister may order an electronic payment instruments 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 electronic payment instruments 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 electronic payment instruments services in a proper and steady manner, to the extent necessary for this, the Minister may order a person to whom business has been entrusted by the electronic payment instruments 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) to submit reports or materials that can be used as reference for the business or property of the electronic payment instruments service provider, or have officials enter the facility of the person to whom business has been entrusted by the electronic payment instruments service provider, ask questions about the status of the business or property of the electronic payment instruments service provider or inspect its books and documents or other items.

A person to whom business has been entrusted by an electronic payment instruments service provider referred to in the preceding paragraph may refuse the submission of reports or materials, or the questions 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 electronic payment instruments services in a proper and steady manner, to the extent necessary for this, the Minister may order an electronic payment instruments 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.

If the Prime Minister finds it necessary and appropriate for the public interest or the protection of users, the Prime Minister may order an electronic payment instruments service provider to hold, within Japan, the part of its assets specified by Cabinet Order.

When an electronic payment instruments service provider falls under any of the following items, the Prime Minister may revoke its registration referred to in Article 62-3 or order the electronic payment instruments service provider to suspend all or part of its electronic payment instruments services, by setting a period for suspension not exceeding six months:

when the electronic payment instruments service provider falls under any of the items of Article 62-6, paragraph (1);

when the electronic payment instruments service provider has been registered pursuant to the provisions of Article 62-3 or the change referred to in Article 62-7, paragraph (1) has been registered through wrongful means; or

when the electronic payment instruments service provider violates this Act or an order under this Act, or a disposition under this Act or an order.

If the Prime Minister is unable to ascertain the locations of business offices of an electronic payment instruments service provider or the whereabouts of the company director or executive officer representing the electronic payment instruments service provider (in cases of an electronic payment instruments service provider that is a foreign electronic payment instruments 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 electronic payment instruments service provider under Article 62-3 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.