#139 Economic Sanctions under Foreign Exchange Act_220801

Japan Branches

1.8.2022
Dear Customers
Economic Sanctions under the Foreign Exchange & Foreign Trade Act
Banks in Japan are required to verify that the remittances applied by customers are notapplicable to the restrictions under the Foreign Exchange and Foreign Trade Act (hereinafter “theForeign Exchange Act”). Following are the major economic sanctions imposed as of date. Please
read this leaflet carefully and make a declaration that the remittance you are making is notapplicable to the economic sanctions. Please tick in the space provided in the application form todeclare the same.
Please note that you may be requested to submit additional documents (including
information of beneficial owners of beneficiary in the case beneficiary is a juridical person), if
necessary, to fulfill the requirements of the regulations/guidelines related to the economicsanctions.
North Korea
1)

Ban on payments to North Korea such as remittance in favour of(1)
(2)
(3)
(4)
(5)

Natural person living in North Korea
Juridical person or other group having its main office in North Korea
Branch office or representative office of (2) located in a foreign country
Juridical person, etc. substantially controlled by (1) or (2)Branch office, etc. of (4) located in a foreign country

Please note, as mentioned in (3) (4) (5) above, that location of beneficiary is not restricted to
North Korea. Remittance to beneficiary in a third country other than North Korea will be also
applicable to this regulation.
“Substantially controlled by” in (4) above means;- More than 50% of issued shares are owned by (2) (i.e. beneficial owners)- More than 50% of board members live in North Korea
Payment of JPY100,000 or less for humanitarian purpose only may be permitted.
2)
3)
4)
5)
6)

Ban on import of goods of North Korean origin/import of goods shipped from North Korea
Ban on intermediary trade of goods of North Korean origin/import of goods shipped fromNorth Korea
Ban on exports from Japan to North Korea without METI1 approval
Ban on exports from a third country to North Korea without METI approval
Prior approval 2 required for payments, trades of means of payments/securities, capitaltransactions, service transactions providing support for North Korea’s nuclear related/ballistic
missile related/other weapons of mass destruction related programmes and activities.

1 Ministry of Economy, Trade and Industry of Japan.

Effectively ban on all exports to North Korea as METI will not give approval.
2 Effectively ban on these transactions as approval will not be given.

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#139 Economic Sanctions under Foreign Exchange Act_220801

Iran1)
2)

Ban on payments (trade related & non-trade related) for the purpose of supporting Iran’s
nuclear activities.
Ban on payments (trade related & non-trade related) for the purpose of supporting Iran’sactivities relating to supply of large conventional weapons etc.

Russia, Belarus, Crimea, Eastern Ukraine, etc.
1) Ban on payments to individuals and groups designated under the Foreign Exchange Act.
 The groups in which more than 50% of the total number of shares etc. are directly
held by the designated groups are also subject to the payment ban.
2) Ban on acquisition or transfer of securities issued by Russian govt, etc.
Ban on issuance or offering of securities in Japan by Russian govt, etc.
Ban on issuance or offering of securities in Japan by specific Russian banks3) Ban on provision of service or benefits pertaining to issuance or offering of securities
mentioned above
 Payments pertaining to the above service or benefits are prohibited.
4) Ban on export of specific items to Russia and Belarus5) Ban on export to specific groups in Russia and Belarus
6) Ban on provision of technology pertaining to export ban measures mentioned in 4) and 5)above
 Payments pertaining to the above service or benefits are prohibited.
7) Ban on provision of technology to specific groups, provision of service or benefits
pertaining to trust service, provision of service or benefits pertaining to accounting,auditing or management consulting, etc.
 Payments pertaining to the above services or benefits are prohibited.
8) Ban on outward direct investment pertaining to business in Russia
Ban on outward direct investment pertaining to business conducted abroad by Russianentity, etc.
There are more than 20 economic sanction measures imposed under the Foreign Exchange
Act as of date such as payment ban to Taliban related individuals, etc. For the details of the above
economic sanction measures please visit the websites below.
Ministry of Finance, Japan
http://www.mof.go.jp/international_policy/gaitame_kawase/gaitame/economic_sanctions/list.html
Ministry of Economy, Trade and Industry, Japan
https://www.meti.go.jp/policy/index.html
Economic Sanctions by Foreign Governments
Depending on the currency of remittance, beneficiary bank’s country, etc. there may be
restrictions on payments. Please check the regulations applicable to your remittance in advance.
For information the remittance in USD will be subject to OFAC rules.
U.S. Department of the Treasury – Office of Foreign Assets Control (OFAC)
https://home.treasury.gov/policy-isues/office-of-foreign-assets-control-sanctions-programs-andinformation
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