Payment Services Act

The purpose of this Act is to enforce registration and provide other necessary measures with respect to the issuance of prepaid payment instruments, or funds transfer transactions carried out by persons other than deposit-taking institutions, exchange of electronic payment instruments, etc., exchange of cryptoassets, etc., analysis on funds transfer transactions, and the clearing of funds transfer transactions between deposit-taking institutions, in order to ensure the appropriate provision of payment services, and protection of the users, etc. thereof, and to promote the provision of those services, thereby contributing to the improvement of the safety, efficiency, and convenience of the payment and settlement system.

①The 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).

②The 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.

③The term "funds transfer service provider" as used in this Act means a person who has been registered referred to in Article 37.

④The 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).

⑤The term "electronic payment instrument" as used in this Act means any of the following:

⑥The term "goods, etc." as used in this Act means goods and other property value (excluding the Japanese currency and foreign currencies).

⑦The 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.

⑧The 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).

⑨The 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.

⑩The 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):

⑪The term "electronic payment instruments-related business" as used in this Act means exchange of electronic payment instruments, etc. or management of electronic payment instruments.

⑫The term "electronic payment instruments service provider" as used in this Act means a person who has been registered referred to in Article 62-3.

⑬The 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.

⑭The term "cryptoasset" as used in this Act means any of the following; provided, however, that those indicating the rights prescribed in Article 29-2, paragraph (1), item (viii) of the Financial Instruments and Exchange Act are excluded:

⑮The term "cryptoasset exchange services" as used in this Act means carrying out any of the following acts in the course of trade, the term "exchange of cryptoassets, etc." as used in this Act means the act set forth in item (i) or (ii), and the term "management of cryptoassets" as used in this Act means the act set forth in item (iv):

⑯The term "cryptoasset exchange service provider" as used in this Act means a person who has been registered referred to in Article 63-2.

⑰The term "foreign cryptoasset exchange service provider" as used in this Act means a person who has been registered and carries out cryptoasset exchange services in a foreign state, whose registration type is same as the one referred to in Article 63-2, pursuant to the provisions of laws and regulations of that foreign state comparable to this Act (including other administrative dispositions similar to that registration).

⑱The term "electronic payment instruments and cryptoasset intermediary services" as used in this Act means carrying out any of the following acts in the course of trade, the term "electronic payment instruments intermediary act" as used in this Act means the act set forth in item (i), and the term "cryptoasset intermediary act" as used in this Act means the act set forth in item (ii):

⑲The term "electronic payment instruments and cryptoasset intermediary service provider" as used in this Act means a person who has been registered referred to in Article 63-22-2.

⑳The term "foreign electronic payment instruments and cryptoasset intermediary service provider" as used in this Act means a person who has been registered and carries out electronic payment instruments and cryptoasset intermediary services in a foreign state, whose registration type is same as the one referred to in Article 63-22-2, 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 carries out, in the course of trade, an act equivalent to any of the acts set forth in the items of paragraph (18) in conformity with the laws and regulations of that foreign state.

（二十一）The term "funds transfer transaction analysis services" as used in this Act means engaging in any of the following acts, as entrusted by multiple financial institutions, etc. (meaning banks and other persons specified by Cabinet Order; the same applies hereinafter), with regard to funds transfer transactions (including transactions specified by order of the competent ministry as being equivalent thereto; hereinafter the same applies in this paragraph and Chapter IV) carried out by the financial institutions, etc.:

（二十二）The term "funds transfer transaction analysis service provider" as used in this Act means a person who has obtained the license referred to in Article 63-23.

（二十三）The term "clearing services for interbank funds transfer" as used in this Act means acts of bearing obligations under funds transfer transactions arising between deposit-taking institutions in the course of trade by way of the assumption of an obligation, novation or other means for the purpose of clearing claims and debts relating to the funds transfer transactions.

（二十四）The term "clearing institution for interbank funds transfer" as used in this Act means a person who has obtained the license referred to in Article 64, paragraph (1).

（二十五）The term "certified association for payment service providers" as used in this Act means a general incorporated association that has been certified pursuant to the provisions of Article 87.

（二十六）The term "designated dispute resolution organization" as used in this Act means a person who has been designated pursuant to the provisions of Article 99, paragraph (1).

（二十七）The term "dispute resolution services" as used in this Act means services involved in complaint processing procedures (meaning procedures for processing complaints concerning funds transfer services (excluding the specified funds transfer services prescribed in Article 36-2, paragraph (4); hereinafter the same applies in this paragraph), electronic payment instruments services, cryptoasset exchange services or electronic payment instruments and cryptoasset intermediary services) and dispute resolution procedures (meaning procedures for resolving a dispute concerning funds transfer services, electronic payment instruments services, cryptoasset exchange services or electronic payment instruments and cryptoasset intermediary services between parties who agree to seek a settlement without following litigation proceedings; hereinafter the same applies except in Article 100, paragraph (3)), as well as services incidental thereto.

（二十八）The term "categories of dispute resolution services" as used in this Act means categories of funds transfer business (meaning businesses involved in funds transfer transactions carried out by a funds transfer service provider; the same applies in Article 51-4, paragraph (1), item (i)), electronic payment instruments business (meaning businesses involved in any of the acts set forth in the items of paragraph (10) performed by an electronic payment instruments service provider and businesses involved in the electronic payment instruments intermediary act performed by an electronic payment instruments and cryptoasset intermediary service provider; the same applies in Article 62-16, paragraph (1), item (i)), or cryptoasset exchange business (meaning businesses involved in any of the acts set forth in the items of paragraph (15) performed by a cryptoasset exchange service provider and businesses involved in the cryptoasset intermediary act performed by an electronic payment instruments and cryptoasset intermediary service provider; the same applies in Article 63-12, paragraph (1), item (i)) which are related to dispute resolution services.

（二十九）The term a "trust company, etc." as used in this Act means a trust company prescribed in Article 2, paragraph (2) of the Trust Business Act (Act No. 154 of 2004) or a foreign trust company prescribed in paragraph (6) of that Article, or a financial institution that has obtained the authorization referred to in Article 1, paragraph (1) of the Act on Engagement in Trust Business by Financial Institutions (Act No. 43 of 1943) (referred to as a "trust bank, etc." in the following paragraph).

（三十）The term "specified trust company" as used in this Act means a trust company, etc. issuing specified beneficial interests in a trust (excluding a trust bank, etc.), which is specified by Cabinet Order.

（三十一）The term "funds transfer transaction in specified trusts" as used in this Act means a funds transfer transaction carried out through the issuance of beneficial interests in a trust.

（三十二）The term "deposit-taking institutions" as used in this Act means any of the following persons:

（三十三）The term "petition for commencement of bankruptcy proceedings, etc." as used in this Act means a petition for commencement of bankruptcy proceedings, rehabilitation proceedings, reorganization proceedings or special liquidation, or a petition for recognition of foreign insolvency proceedings (including filing of a petition equivalent thereto under laws and regulations of a foreign state).

（三十四）The term "Banking Act, etc." as used in this Act means any of the following: the Banking Act, the Long-Term Credit Bank Act, the Shinkin Bank Act (Act No. 238 of 1951), the Labor Bank Act (Act No. 227 of 1953), the Small and Medium Sized Enterprise. Cooperatives Act, the Act on Financial Businesses by Cooperative (Act No. 183 of 1949), the Agricultural Cooperatives Act, the Fisheries Cooperatives Act, the Norinchukin Bank Act (Act No. 93 of 2001) and the Shoko Chukin Bank Limited Act (Act No. 74 of 2007).

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:

①The term "prepaid payment instruments" as used in this Chapter means any of the following instruments:

②The 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):

③The 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).

④The 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.

⑤The 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.

⑥The 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)).

⑦The 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.

⑧The term "high-value electronically transferable prepaid payment instruments" as used in this Chapter means the following:

⑨The 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).

⑩The 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:

①A 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:

②Documents concerning finance and other documents specified by Cabinet Office Order must be attached to the written notice referred to in the preceding paragraph.

③When 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.

①A 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:

②A 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.

①The 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:

②If the Prime Minister registers the particulars under the provisions of the preceding paragraph, the Minister must notify the applicant to that effect without delay.

③The Prime Minister must make the register of issuers of prepaid payment instruments for third-party business available for public inspection.

①The 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:

②If 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.

①If 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.

②If 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.

①When 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:

②When 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.

①When 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:

②Notwithstanding 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.

③Beyond 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.

①If 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).

②If, 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.

③Security 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.

①If 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.

②A trust agreement for security deposits for issuance must prescribe the following particulars:

③The 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:

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.

①If 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:

②If 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:

③The 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.

④The 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.

⑤An 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.

①An 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:

②Documents concerning finance and other documents specified by Cabinet Office Order must be attached to the written report referred to in the preceding paragraph.

③In 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.

①If 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.

②When 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.

③A 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:

①If 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:

②If 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.

③The 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.

①If 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.

②If 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.

③An 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).

④An 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).

①If 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.

②A 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:

③Documents concerning finance and other documents specified by Cabinet Office Order must be attached to the written notice referred to in the preceding paragraph.

④If 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.

①A 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.

②In 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:

③The 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)).

④Notwithstanding 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.

⑤With 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.

⑥Beyond 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.

①If an issuer of prepaid payment instruments falls under any of the following items, it must notify the Prime Minister to that effect without delay:

②When 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.

①The 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.

②The 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).

③The 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.

④The 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.

①Notwithstanding 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).

③When 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.

④If 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.

①A 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:

②A 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.

①The 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:

②When the Prime Minister registered the particulars under the provisions of the preceding paragraph, the Minister must notify the applicant to that effect without delay.

③The Prime Minister must make the register of funds transfer service providers available for public inspection.

①The 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: