Financial Crime World

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Investigative Powers in Japan: An Overview

Japan’s legal system has a complex approach to investigations, involving both internal investigations by companies and external investigations by law enforcement agencies. Here are some key points summarized:

Investigative Powers

  • Administrative Agencies: Administrative agencies in Japan have the power to conduct investigations into suspected wrongdoing by licensed enterprises, such as banks and financial institutions.
  • Request for Information: They can also request information on a voluntary basis.

Questioning Powers

  • Interrogation Rights: The police or public prosecutors can interrogate suspects when they arrest or detain them with a warrant issued by a court.
  • Right to Remain Silent: Suspects have the right to remain silent and confidential communication with their defense attorney.

Attorney-Client Privilege

  • Lack of Recognition: Attorney-client privilege is not recognized under Japanese law in criminal cases, but attorneys may refuse to seize documents related to their clients.

Power of Arrest and Detention

  • Arrest and Detention Rights: The police or public prosecutors can arrest suspects when there’s probable cause to suspect they’ve committed a crime.
  • Right to Bail: Suspects have the right to bail with some exceptions.

Internal Investigations

  • Statutory Obligation: There’s no statutory obligation for companies in Japan to conduct internal investigations, but directors may be prompted by their duty of care to the company.
  • Industry-Specific Regulations: Industry-specific regulations can also compel companies to investigate issues related to the efficacy or safety of their products.
  • International Agreements: Japan has mutual legal assistance treaties with several countries for criminal matters, allowing the country to obtain evidence from foreign countries based on these agreements.