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Japan’s Economic Sanctions Enforcement: A Comprehensive Review
In a move to strengthen its economic sanctions regime, Japan has implemented a robust system of laws and regulations designed to prevent violations and ensure compliance.
No Violation of Sanctions or Prohibitions
According to our investigation, all payments and underlying transactions conducted by Japanese financial institutions have been thoroughly reviewed and confirmed to not violate any sanctions or prohibitions under the Free Trade Agreement between Japan and the United States (FEFTA). This stringent review process ensures that all transactions are compliant with international economic sanctions laws and regulations.
Compliance Expectations
The Ministry of Finance (MOF) has established compliance guidelines for banks and other financial institutions to effectively comply with their obligations under the FEFTA. The Financial Services Agency has also issued guidelines on anti-money laundering and combating the financing of terrorism, outlining the required actions and expected actions to be implemented by each financial institution.
Criminal Penalties
The FEFTA provides for criminal penalties for violating economic sanctions laws and regulations. Violators may face imprisonment or fines, with maximum penalties ranging from one million yen to 10 million yen. Corporate entities found guilty of violations may also be subject to fines.
Government Conveyance of Compliance Expectations
The MOF has established guidelines for banks and other financial institutions to ensure compliance with FEFTA obligations. The Financial Services Agency has also issued guidelines on anti-money laundering and combating the financing of terrorism, outlining required actions and expected actions to be implemented by each financial institution.
Enforcement
- The police and public prosecutors investigate and prosecute criminal economic sanctions offenses.
- Both corporate and personal criminal liability exist under Japanese law.
- Administrative sanctions, such as prohibiting financial transactions or trade, may also be imposed for violations.
No Civil Penalties
Unlike criminal penalties, the FEFTA does not provide for civil penalties for violating economic sanctions laws and regulations.
Government Authorities Responsible for Enforcement
- The police and public prosecutors are responsible for investigating and prosecuting criminal economic sanctions offenses.
- There is no civil enforcement process or authority in Japan.
Conclusion
Japan’s economic sanctions regime is designed to prevent violations and ensure compliance with international laws and regulations. With strict review processes, guidelines for financial institutions, and criminal penalties for violators, the country has taken a comprehensive approach to enforcing its economic sanctions laws and regulations.