The competent minister can require permission for payments, capital transactions, and the like. This applies in three cases: when it is necessary to faithfully observe an international commitment such as a treaty, when it is particularly necessary to contribute to international efforts for international peace, and when the Cabinet has decided to take a countermeasure1.

The Ministry of Finance explains that it carries out asset freezes and similar measures by designating the sanctioned parties. Payments to them, and capital transactions with them, are made subject to permission, which the Ministry then denies2. The Ministry's guidelines call on financial institutions and others that carry out funds transfers to screen the names of the remitter, the recipient, and others against information on the sanctioned parties before the transaction. They also call for updating the list immediately when a sanctioned party is added, its information is revised, or it is removed3.

Notes

  1. "外国為替及び外国貿易法" (Foreign Exchange and Foreign Trade Act, in Japanese), Article 10, paragraph 1, Article 16, paragraph 1, and Article 21, paragraph 1. ↩

  2. Ministry of Finance, "経済制裁措置及び許可手続きの概要" (Outline of economic sanctions measures and permission procedures), the section "タリバーン関係者等・テロリスト等に対する資産凍結等の措置" (Asset freezes and similar measures against Taliban-related persons, terrorists, and others) (in Japanese). ↩

  3. Ministry of Finance, "外国為替取引等取扱業者のための外為法令等の遵守に関するガイドライン" (Guidelines for foreign exchange transaction handlers on compliance with the foreign exchange laws and regulations) (June 2026), II-4-(1)-1 and 2 (page 11) (in Japanese). ↩