Foreign Exchange and Foreign Trade Act (FEFTA) – Restricted Transactions
Our company confirms that customers’ foreign exchange transactions are not subject to economic sanctions under the Foreign Exchange and Foreign Trade Act (“FEFTA”) (including transactions related to North Korea, Iran, and Russia).
When requesting an overseas remittance, if the purpose of the remittance is payment for import settlement, you are required to declare the product name, origin, and shipping region (in cases of remittance to neighboring countries of restricted jurisdictions, the name of the city where the port of shipment is located must also be declared).
North Korea-related Regulations
Trade Restrictions
- Import and intermediary trade transactions of goods originating in or shipped from North Korea
- Intermediary trade transactions of goods destined for North Korea
Transactions with Sanctioned Parties
- Payments to individuals residing in North Korea or to corporations headquartered in North Korea (including corporations substantially controlled by such individuals or corporations)
Remittance Purpose Restrictions
- Transactions contributing to North Korea’s nuclear-related activities
Iran-related Regulations
Remittance Purpose Restrictions
- Transactions contributing to Iran’s nuclear-related activities
Russia and Belarus-related Regulations
Trade Restrictions
- Import/export transactions where the origin or destination is the so-called “Donetsk People’s Republic” or “Luhansk People’s Republic”
Restrictions on Foreign Direct Investment (FDI)
- FDI in businesses conducted in Russia, or in businesses conducted abroad by Russian corporations (including those substantially controlled by Russian persons/corporations)
- Payments by residents of Japan to partnerships/joint ventures established jointly with other residents or non-residents, intended for business activities in Russia
- Payments by residents of Japan to partnerships/joint ventures established jointly with Russian corporations (including those substantially controlled by Russian persons/corporations), intended for business activities abroad
Restrictions on Provision of Services
- Provision of certain technologies to Russian/Belarusian individuals or corporations as specified under FEFTA
- Provision of labor or benefits relating to trust services to Russian individuals/corporations
- Provision of accounting, auditing, management consulting, architecture, or engineering services/benefits to Russian corporations
Securities Transaction Restrictions
- Acquisition or transfer of securities issued by the Russian government or governmental bodies
- Issuance or offering of securities in Japan by the Russian government or governmental bodies (including related services/benefits)
- Issuance or offering in Japan of securities (with a maturity exceeding 30 days) by designated Russian banks (including entities directly holding 50% or more of their shares or capital), including related services/benefits
Price Cap Regulations
- Transactions involving monetary loans or debt guarantees between residents of Japan and non-residents, related to the purchase or transport of Russian-origin crude oil or petroleum products transported by sea (only applicable if the purchase price exceeds the price cap)
Other Regulations
Transactions with Sanctioned Parties
- Payments and other transactions with sanctioned persons designated under FEFTA (including payments to entities directly owned 50% or more by sanctioned Russian/Belarusian persons or entities)
(*) The following also fall under restrictions:
- Payments conducted directly or indirectly for the benefit of sanctioned parties (including payments made in the name of a third party on behalf of a sanctioned party)
- Payments to corporations substantially controlled by sanctioned parties
Restrictions on Foreign Direct Investment (FDI)
- Payments for business activities abroad by partnerships/joint ventures related to fisheries, leather or leather products, weapons, arms manufacturing-related equipment, narcotics, etc.