On March 3, 2017, the Japanese government submitted to the Diet a bill to partially amend the Foreign Exchange and Foreign Trade Act ("Amendment Bill"). The Amendment Bill would strengthen criminal penalties for violations of regulations regarding the export or import of goods or the transfer of technologies (for example, the maximum fine that may be imposed on a legal entity would be increased to JPY1 billion). In addition, the Amendment Bill would introduce a prior notification requirement for certain acquisitions by a foreign investor of the shares of a Japanese unlisted company from another foreign investor. Such acquisitions are not subject to any prior notification requirement under the current Act. If enacted, this amendment would affect importers and exporters and would also affect a foreign company (including a Japanese subsidiary of a foreign company) intending to make an investment in a Japanese company with sensitive technologies. Individuals or companies that would likely be affected by the Amendment Bill should pay close attention to debate about it in the Diet.
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