Payment Services Act

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.