Payment Services Act

A funds transfer transaction analysis service provider must provide the funds transfer transaction analysis services pursuant to the provisions of its business rules.

The business rules must specify the following particulars:

particulars concerning the conclusion of a contract for accepting the entrustment of funds transfer transaction analysis business from financial institutions, etc.;

particulars concerning the type and content of the information handled in funds transfer transaction analysis services;

particulars concerning the acquisition method and appropriate management of the information handled in funds transfer transaction analysis services;

particulars concerning the securing of continued provision of the funds transfer transaction analysis services;

if a funds transfer transaction analysis service provider engages in business other than the funds transfer transaction analysis services and funds transfer transaction analysis-related business, particulars concerning measures to ensure that the business will not prevent the provision of the funds transfer transaction analysis services in a proper and steady manner;

if a funds transfer transaction analysis service provider entrusts all or part of its funds transfer transaction analysis services to another funds transfer transaction analysis service provider or entrusts all or part of its funds transfer transaction analysis-related business to a third party, particulars concerning the establishment of a system to ensure the operation of the entrusted services or business by the other service provider or the third party in a proper and steady manner; and

other particulars specified by order of the competent ministry.

A funds transfer transaction analysis service provider must, pursuant to the provisions of order of the competent ministry, specify particulars concerning the leakage, loss, or damage of information pertaining to the funds transfer transaction analysis services in business rules, and take other measures necessary for the appropriate management of that information.

A company director, etc. (or, if a company director, etc. is a corporation, a person who is to perform the duties; the same applies in the following paragraph) or an employee of a funds transfer transaction analysis service provider, or a person who was formerly in that position must not divulge or misappropriate any confidential information learned during the course of their duties relating to the funds transfer transaction analysis services or funds transfer transaction analysis-related business to another person.

A company director, etc. or an employee of a funds transfer transaction analysis service provider, or a person who was formerly in that position must not use any information learned during the course of their duties relating to the funds transfer transaction analysis services and funds transfer transaction analysis-related business for any purpose other than using those for the funds transfer transaction analysis services and funds transfer transaction analysis-related business.

The provisions of the preceding two paragraphs apply mutatis mutandis to a person to whom funds transfer transaction analysis-related business is entrusted from a funds transfer transaction analysis service provider (or, if the person is a corporation; its officers) or the person's employees and other persons who engage in the entrusted business, or persons who were formerly in that position.

When a funds transfer transaction analysis service provider intends to amend the articles of incorporation or business rules, it must obtain the authorization from the competent minister.

When a funds transfer transaction analysis service provider intends to change any of the particulars set forth in Article 63-24, paragraph (1), item (vi) (limited to changes due to its intention to provide a new type of funds transfer transaction analysis services), the funds transfer transaction analysis service provider must obtain a license for the change from the competent minister, pursuant to the provisions of order of the competent ministry.

When any of the particulars set forth in Article 63-24, paragraph (1), item (ii) (excluding the amount of net assets) or particulars set forth in items (iii) through (v) or item (viii) of that paragraph are changed, or when any of the particulars set forth in item (vi) of that paragraph (excluding changes due to its intention to provide a new type of funds transfer transaction analysis services) are changed, a funds transfer transaction analysis service provider must notify the competent minister to that effect without delay, and when it intends to change the particulars set forth in item (vii) of that paragraph, a funds transfer transaction analysis service provider must notify the competent minister to that effect in advance.

The provisions of Articles 63-24 and 63-25 apply mutatis mutandis to the license referred to in paragraph (1). In this case, the term the "following particulars" in Article 63-24, paragraph (1) is replaced with the "particulars pertaining to the change".

A funds transfer transaction analysis service provider must, pursuant to the provisions of order of the competent ministry, prepare a written report on its funds transfer transaction analysis services for each business year and submit it to the competent minister.

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

When the competent minister finds it particularly necessary for the provision of the funds transfer transaction analysis services in a proper and steady manner, the minister may, to the extent necessary for this, order a person to whom business has been entrusted (limited to the entrustment of funds transfer transaction analysis-related business and the approved business referred to in the proviso to Article 63-27, paragraph (1); hereinafter the same applies in this Article) by the funds transfer transaction analysis service provider (including persons to whom the business has been entrusted by the entrusted person (including 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 funds transfer transaction analysis service provider, or have officials enter the facility of the person to whom business has been entrusted by the funds transfer transaction analysis service provider, ask questions about the status of the business or property of the funds transfer transaction analysis service provider or inspect its books and documents or other items.

A person to whom business has been entrusted by a funds transfer transaction analysis 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 competent minister finds it necessary for the provision of funds transfer transaction analysis services in a proper and steady manner, the minister may, to the extent necessary for this, order a funds transfer transaction analysis service provider to take necessary measures to improve the operation of its business or its financial status, or other measures necessary for the supervision.

If a funds transfer transaction analysis service provider falls under any of the items of Article 63-25, paragraph (2), the competent minister may revoke the license referred to in Article 63-23.

When a funds transfer transaction analysis service provider violates this Act or an order under this Act, or a disposition under this Act or the order, the competent minister may revoke the license referred to in Article 63-23 or the approval referred to in the proviso to Article 63-27, paragraph (1), order suspension of all or part of the business of the funds transfer transaction analysis service provider by setting a period not exceeding six months, or order the funds transfer transaction analysis service provider to dismiss its company director, etc.

A resolution of discontinuation of all or part of the funds transfer transaction analysis services of a funds transfer transaction analysis service provider or a resolution of dissolution of a funds transfer transaction analysis service provider does not come into effect without the approval of the competent minister.

When the competent minister intends to reach a disposition under the provisions of Article 63-36 or Article 63-37, paragraph (1) or (2) with regard to a funds transfer transaction analysis service provider that has been entrusted with funds transfer transaction analysis business by the person set forth in the following items, the minister must in advance consult with the minister specified in the respective items according to the categories of persons set forth in the respective items:

The competent minister in this Chapter is the minister specified in the following items according to the categories of cases set forth therein:

in cases other than the case set forth in the preceding item:the Prime Minister.

The order of the competent ministry in this Chapter is the order specified in the following items according to the categories of cases set forth therein:

in cases other than the case set forth in the preceding item:Cabinet Office Order.

In the case set forth in paragraph (1), item (i), the Prime Minister or the Minister of Finance is not precluded from exercising the authority of the competent minister prescribed in Article 63-35, paragraphs (1) and (2) independently.

If the competent minister exercises the authority independently pursuant to the provisions of the preceding paragraph, the minister is to notify the other competent minister of the results thereof promptly.

Beyond what is provided for in this Chapter, particulars necessary for the enforcement of this Chapter are specified by order of the competent ministry.