Regulations on Payments Based on the Foreign Exchange and Foreign Trade Act of Japan
In order to ensure the implementation of economic sanctions under the Foreign Exchange and Foreign Trade Act of Japan (hereafter, FEFTA), pursuant to Article 17 of FEFTA, MUFG has a duty to confirm that the customer’s remittances do not fall under a transaction restricted under the following regulations including but not limited to
“Regulations on trade-related payment” “Regulations on the purpose of use of funds” “Regulations on foreign direct investment”, and “Regulations on service transactions”
We appreciate your understanding and cooperation.
“Regulations on trade-related payment” “Regulations on the purpose of use of funds” “Regulations on foreign direct investment”, and “Regulations on service transactions”
We appreciate your understanding and cooperation.
- Please declare the purpose of your remittance.
Please confirm and declare that “the transaction does not fall under a transaction related to Iran or North Korea restricted under the FEFTA” and also confirm that the transaction does not fall under the latest Russia sanctions. (Until further notice, despite the incorporation of Russia-related sanctions into the scope of the declaration, the declaration language itself and its process will remain unchanged).
- Please confirm counterparties of your remittance.
To the best of your knowledge, please confirm that the recipient of the final funds of the remittance is not a resident of North Korea; that there are no North Korean residents (corporations or individuals) among the principal shareholders or directors of the counterparties; and declare that “the transaction does not fall under a transaction related to Iran or North Korea restricted under the FEFTA”.
- We may ask you to provide us with documents to confirm the details of your transaction.
We may ask you to present materials related to the transaction and confirm the details of the transaction. Further, please note in advance that we may decline a transaction if we are unable to confirm that the transaction does not fall under a transaction restricted under the regulations (“Regulations on trade-related payment” “Regulations on the purpose of use of funds”, “Regulations on payment ban against North Korea”, “Regulations on foreign direct investment”, and “Regulations on service transactions”).
- For Russia-related regulations, please check the latest regulations issued on the Ministry of Finance Japan (hereafter, JMOF) Notification or JMOF website.
In response to Russia's actions against Ukraine in February 2022, various restrictions under the FEFTA were imposed concurrently, therefore we kindly ask you to check the JMOF website (*) before submitting the above declaration.
- (*) JMOF website, Latest Russia and Belarus Regulations (Japanese only)
- JMOF website, Economic Sanctions and Designated parties (Japanese only)
Regulations on Payments Based on FEFTA (Excerpt)
1. “Regulations on trade-related payment” concerning North Korea
- Transactions pertaining to import or intermediary trade of all goods of which the place of origin or the region of shipment is North Korea (Effective October 14, 2006)
- Transactions pertaining to intermediary trade of goods of which the place of destination is North Korea (Effective June 18, 2009)
2. “Regulations on the purpose of use of funds” concerning North Korea
- Transactions conducted for the purpose of contributing to “activities that can contribute to North Korea’s nuclear-related plan, etc.” (Effective July 7, 2009)
3. “Regulations on payment ban” against North Korea
- Payment to individual or corporation who is domiciled in North Korea is generally prohibited unless it is for humanitarian purpose and its amount does not exceed 100,000 yen (Effective February 26, 2016)
4. “Regulations on the purpose of use of funds” concerning Iran
- Transactions conducted for the purpose of contributing to “activities related to Iran’s nuclear activities, etc.” (Effective January 22, 2016)
5. Regulations on Foreign Direct Investment concerning Russia
- New foreign direct investment to the Russian Federation (Effective May 12, 2022)
- Payment of funds for business activities conducted in the Russian Federation and/or payment of funds for business activities conducted outside the Russian Federation in which Russian companies, etc., are involved (Effective May 12, 2022)
6. Regulations regarding Service Transactions concerning Russia and Belarus
- Prohibition of service transactions (provision of technology, etc.) with respect to regulated transactions concerning Russia or Belarus (Sequentially effective from March 8, 2022)
7. Regulations on Capital Transactions concerning Russia
- Prohibition of transactions related to the issuance of claims etc., in respect to loan contracts and guarantee contracts for debts, related to the purchase of maritime transported Russian crude oil, etc., which are traded at prices above the price cap (Effective crude oil: December 5, 2022, petroleum products: February 6, 2023)
(As of February 2023)