Japan

National Competent Authorities

The Ministry of the Economy, Trade and Industry is responsible for trade sanctions

The Ministry of Finance is responsible for financial sanctions

The Ministry of Foreign Affairs has overall responsibility for the implementation of UN sanctions

Legislation

Foreign Exchange and Foreign Trade Act 1949 (English translation by Japanese Ministry of Justice)

Act on Special Measures Concerning Freezing of Assets Implemented by Japan in Light of the United Nations Security Council Resolution 1267

Sanctions Lists

Consolidated sanctions lists (Japanese)

Guidance

Overview of Economic Sanctions and Licensing Procedures (Japanese)

FAQ on Payment Notification/Capital Transaction Notification

Ministry of Economy, Trade, and Industry – latest updates (including export control updates)

Ministry of Finance – sanctions updates

Economic sanctions and target list

Ministry of Foreign Affairs – response to the situation in Ukraine

Regime specific guidance:

• Sanctions against North Korea

• Sanctions against Russia, etc.

• Sanctions & export controls against Russia

• Sanctions against the Democratic Republic of the Congo

• Sanctions against Sudan

• Iran sanctions

• Sanctions against Somalia

• Sanctions against Libya

• Syria sanctions

• Sanctions against the Central African Republic

• Sanctions against Yemen

• Sanctions against South Sudan

• Sanctions against the Republic of Mali

• Sanctions against Haiti

• Sanctions against Israeli settlers

• Sanctions against Iraq

Licensing

Sanctioned people and entities can apply for permission for financial transactions/trade otherwise prohibited by sanctions under article 10 Foreign Exchange and Foreign Trade Act 1949. Applications are submitted to prefectural public safety commissions (committees established under the jurisdiction of governors of prefectures). The commission must grant the application if for:

• payment of expenses normally required for the living of the relevant person subject to freezing of assets, etc., and the spouse or other relatives who have the same livelihood with the relevant person;

• payment of taxes and other public charges;

• payment of costs in connection with a lawsuit involving a disposition under the provisions of the Foreign Exchange and Foreign Trade Act, or any other act involving the exercise of public authority;

and there is no risk of the permission being used for:

• international terrorists, criminal acts for the purpose of intimidating the general public, etc.;

• people involved in weapons of mass destruction programs and activities, etc.,

The public safety commission may attach conditions to the licence.

Enforcement

Sanctions violations are a criminal offence in Japan. Japan’s police and public prosecutors are responsible for enforcement.

Breaches of financial sanctions are punishable under Article 70 of the Foreign Exchange and Foreign Trade Act 1949 with:

• imprisonment of up to 3 years, and/or

• a fine of up to 1m yen (unless three times the value of the subject matter of the violation exceeds 1m yen, the fine is up to three times that value)

Breaches of trade sanctions are punishable under Article 69-7 of the Foreign Exchange and Foreign Trade Act 1949 with:

• imprisonment of up to 5 years, and/or

• a fine of up to 10m yen (unless five times the value of the subject matter of the violation exceeds 10m yen, the fine is up to five times that value)

However, if a competent minister has made it obligatory to obtain permission for a transaction and a person/entity has been involved in such a transaction without permission, the Minister can prohibit that person/entity from such transactions for up to a year.

If a person/entity breaches trade sanctions/export controls, the Ministry of Economy, Trade and Industry can under Article 53 of the Foreign Exchange and Foreign Trade Act ban that person/entity from importing or exporting goods into/out of Japan for up to a year (3 years in the case of breaches of autonomous trade sanctions).

Reporting

Banks and financial institutions are required under article 8 of the Act on Prevention of Transfer of Criminal Proceeds to report suspicious transactions, which include those suspected of violating sanctions and export controls under the Foreign Exchange and Foreign Trade Act 1949.

Export controls

Guidance

Japan’s export controls are governed by:

• the Foreign Exchange and Foreign Trade Act 1949, which specifies regulations on export of goods and transfer of technologies

• the Export Trade Control Order and Foreign Exchange Order, which specify the goods and technologies to be controlled

• Ministerial Order Specifying Goods and Technologies, which specifies the functions/specifications of the goods/technologies to be controlled

There are two types of controls: (1) list controls; and (2) catch-call controls. List controls are items that are highly likely to be used for arms or the development, etc., of WMD and conventional weapons are listed by the regulations. Catch-all controls cover non-listed dual-use items if they are likely to be used for the development, etc., of WMD and conventional weapons (e.g. due to their end use(r) or destination).

Any export of goods/transfer of technologies subject to controls requires a licence from the Minister of Economy, Trade and Industry

In addition to the above, Japan has imposed general bans on:

• imports from/exports to DPRK/North Korea

• imports from Crimea and Sevastopol

• imports from/exports to Donetsk and Luhansk

De-listing

There is not a specific mechanism under the Foreign Exchange and Foreign Trade Act or Act on Special Measures Concerning Freezing of Assets to challenge designations. However, designated people/entities may challenge their designation under the:

• Administrative Complaint Review Act – requesting administrative review of the designation by the designating government agency (or a higher administrative agency)

• Administrative Case Litigation Act – court review of the designation