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OFAC Compliance in Japan: What You Need to Know

In an effort to prevent terrorism and other illicit activities, the United States Office of Foreign Assets Control (OFAC) has implemented strict sanctions regulations that require financial institutions, including Citibank, N.A., Tokyo Branch (CBNA Tokyo), to comply with international laws and regulations.

Regulations to be Complied with

CBNA Tokyo is subject to domestic sanctions regulations, including Japan’s Foreign Exchange and Foreign Trade Act (FEFTA), as well as international sanctions regulations imposed by OFAC and other competent regulatory authorities. The bank must confirm that all fund transfers do not fall under restricted transactions, such as those involving North Korea, Iran, Russia, Belarus, or other sanctioned jurisdictions.

Transaction Information Required for Confirmation

To ensure compliance with these regulations, CBNA Tokyo requires the following information:

  • Beneficiary’s address (country and city)
  • Purpose of the transaction
  • Country of origin and port of loading for trade settlement transactions

Restricted Transactions Under FEFTA

CBNA Tokyo is prohibited from engaging in certain transactions under FEFTA, including:

  • Restrictions on Payments for Trade involving North Korea
  • Restrictions on Payments for Specific Purposes involving North Korea
  • Restrictions on Payments for Specific Purposes involving Iran
  • Prohibition of payments to individuals/entities with an address or residence in North Korea

CBNA Tokyo is also subject to restrictions related to providing services and outward direct investments to entities in Russia, Belarus, and other sanctioned jurisdictions.

Contact Us

If you have any questions regarding OFAC compliance or restricted transactions, please contact our CitiService representatives at +81-3-6776-9200 or japan.citiservice@citi.com.