Compliance - Japan Compliance (Page 6)

Japan Compliance

Compliance

A collection of 188 posts

Slide summary: 2024 Japan Supreme Court decision—board discretion, bonus reduction, business-judgment deference, director duties

Board Discretion and Director Accountability in Japan: Insights from a 2024 Supreme Court Ruling

TL;DR: A 2024 Supreme Court ruling upheld a board’s discretion to slash a retiring director’s bonus after an external probe found serious misconduct. The decision confirms that Japanese courts defer to boards acting through proper process and clarifies how “business-judgment” deference interacts with directors’ duty of care

Slide summary: Japan’s export-control tightening and new patent-secrecy regime—chip tools, catch-all, ESPA Chapter 5

Intellectual Property Law

Japan Export-Control & Patent-Secrecy Reforms: 2025 Guide

TL;DR: Japan is tightening export controls—adding chip-tool and emerging-tech items beyond multilateral lists—and has launched a patent secrecy regime under the Economic Security Promotion Act. Tech companies must update compliance programs, monitor “catch-all” triggers and weigh filing strategies to avoid secrecy orders. Table of Contents 1. Introduction:

Slide summary: Japan critical-supply-chain rules—risk reports, localisation, foreign-ownership vetting, 2025–26 enforcement

Japan’s Critical-Supply-Chain Rules: Compliance Guide 2025

TL;DR: Japan’s Economic-Security laws now require companies handling “Specified Critical Supply Chains and Infrastructure” to file risk reports, localise key processes, and obtain ministerial vetting for upgrades or foreign ownership changes. Early mapping of tier-1 and tier-2 suppliers is essential as enforcement widens in 2025-26. Table of Contents

Slide summary: Japan security-clearance system—eligibility, background checks, data localisation, 2026 launch timeline

Japan’s New Security-Clearance System: Guide for Foreign Firms

TL;DR: Japan will launch a security-clearance system by 2026 allowing access to “Specified Secret Information” in economic-security projects. Foreign subsidiaries can apply but must appoint vetted liaison officers, localise data storage and accept intrusive background checks. Early preparation is critical, especially for dual-use tech and critical-infrastructure contracts. Table of

Slide summary: EU CBAM—covered goods, 2026 certificate duty, foreign carbon price credit, supply-chain impact on US–Japan trade

Environmental Law

EU CBAM: Impact on US–Japan Supply Chains

TL;DR: The EU Carbon Border Adjustment Mechanism (CBAM) extends EU-ETS carbon pricing to cement, steel, aluminium, fertilisers, electricity and hydrogen imports. From 2026 importers must buy CBAM certificates unless a foreign carbon price is credited. US firms trading via Japan must map emissions data, renegotiate supply-chain contracts and budget

Slide summary: Tokyo 2024 ruling—illegal business orders, employee damage claims, duty of care under Labor Contract Act

Labor & Employment Law

Illegal Business Orders & Employee Damage Claims: Tokyo 2024 SES Fraud Case

TL;DR: A 2024 Tokyo District Court held employers personally liable after ordering staff to falsify résumés in an SES fraud scheme. The ruling clarifies that illegal business orders breach the employer’s duty of care and trigger tort claims—even if employees later realise the wrongdoing. Table of Contents

Slide summary: lawyer-director due-diligence failure, gross negligence, Article 429 personal liability in Japan

Director Liability in Japan: Lessons from a Case Involving Lawyer-Directors and M&A Due Diligence

TL;DR: A 2024 district-court ruling voided a board resolution and found a lawyer-director personally liable for grossly negligent M&A due diligence. The case shows that directors with professional expertise carry a higher duty of care and may face full third-party damages when their advice is misleading. Table

Slide summary: EU Battery Regulation—carbon limits, recycled content targets, digital passport, supply-chain due-diligence

Environmental Law

EU Battery Regulation: Global Impact on US-Japan Supply Chains

TL;DR: The EU Battery Regulation imposes cradle-to-grave rules—carbon footprint, recycled content, due-diligence and QR labelling—on every battery sold in the EU. U.S. and Japanese manufacturers must trace upstream materials, secure recycling capacity and update technical files well before phased deadlines in 2025-2030. Table of Contents 1.

Slide summary: Japan’s stablecoin licensing & Digital Yen pilot—issuer types, AML duties, two-tier CBDC timeline

Japan's Digital Currency Frontier: Understanding New Stablecoin Regulations and the Future Digital Yen

TL;DR: Japan couples strict fiat-backed stablecoin rules under the Payment Services Act with a cautious two-tier CBDC pilot. Banks, fund-transfer firms and trust banks can issue 1-to-1 yen stablecoins, while the Digital Yen remains in testing. Global firms must navigate licensing, AML travel-rule duties and data-privacy limits before full

Slide summary: Osaka 2024 script-alteration case—Japan’s moral right of integrity, consent rules, business precautions

Intellectual Property Law

Film-Script Edits & Moral Rights in Japan: 2024 Osaka Case

TL;DR: A 2024 Osaka court held that extensive script changes without explicit consent infringed a co-author’s moral right of integrity. The ruling shows how narrowly Japanese courts interpret waivers and how crucial clear contracts and ongoing consultation are for international film projects. Table of Contents 1. Introduction 2.

Slide summary: Japan’s beneficial-ownership debate—current gaps, G7/FATF pressure, proposed registry reforms, corporate impact

Enforcing Provisional Injunctions in Japan: Validity of Shareholder Resolutions Passed in Violation

TL;DR: A 2024 Osaka High Court decision confirmed that a shareholder resolution passed in breach of a provisional injunction is void. The ruling tightens corporate-governance risk for issuers that ignore injunctions and clarifies the evidentiary burden when disputes escalate to nullification suits. Table of Contents 1. Introduction 2. Background:

Slide summary: Japan’s child-support and visitation reforms—liens, garnishment, fast-track visitation, enforcement challenges

Child Support and Visitation in Japan: Procedural Reforms and Enforcement Challenges

TL;DR: Japan’s 2024–26 family-law reforms tighten child-support enforcement with statutory liens, salary-garnishment orders and a new automatic-payment system. They also streamline visitation mediation and introduce fines for visitation obstruction. Success will hinge on court capacity and accurate income disclosure. Table of Contents 1. Introduction 2. Strengthening Child-Support

Slide summary: Japan’s 2024 family-law reform—optional joint parental authority, DV safeguard, implementation by 2026

Understanding Post-Divorce Parental Rights in Japan: Key Changes in the New Family Law

TL;DR: Japan’s 2024 family-law reform lets divorcing parents choose joint parental authority, keeps a safety valve for domestic-violence cases, and clarifies how joint decision-making works. Courts will still rule case-by-case, but the shift moves Japan closer to global norms and forces employers, schools, and courts to update policies

Slide summary: Japan’s 2024 family-law overhaul—optional joint custody, stronger child-support enforcement, visitation tools, start by 2026

Japan Overhauls Family Law: Introducing Joint Custody and Reforming Child Support

TL;DR: Japan’s 2024 family-law overhaul ends mandatory sole custody, lets parents choose joint parental authority, toughens child-support enforcement with statutory liens and “automatic” minimum payments, and expands tools for visitation. Full roll-out by mid-2026 will reshape divorce practice, court workloads, and workplace policies for parents. Table of Contents

Slide summary: Japan’s platform–national-security nexus—data controls, disinformation, economic-security act, business compliance steps

Platforms and National Security: Emerging Legal Issues in Japan

TL;DR: Japan is hard-wiring national-security concerns into platform regulation. Data-flow controls, MIC security guidance and the 2022 Economic Security Promotion Act tighten oversight of foreign-linked services, while disinformation and critical-infrastructure worries drive tougher content and supply-chain rules. Businesses must map their exposure and embed security governance into every product

Slide summary: Japan’s digital-platform tax—scope, 100 m turnover threshold, invoicing duties, penalties, Oct 2024 start

Taxing the Digital Economy: Japan's New Rules for Platform Taxation

TL;DR: From October 2024 Japan deems large digital-platform operators the supplier for cross-border digital services, making them responsible for collecting and paying consumption tax. The new “specified platform” regime brings stricter registration, invoice and annual-report duties—foreign marketplaces must re-tool billing systems and audit seller data now. Table of

Slide summary: JFTC commitment procedure—legal basis, tech-sector use, 2024 monitoring rules, strategic tips for global firms

Competition / Antitrust Law

Commitment Procedures in Japanese Antitrust: Recent Trends and Implications for Tech Platforms

TL;DR: Since 2018 Japan’s Antimonopoly Act lets the JFTC close investigations through negotiated commitment procedures. Usage has surged—especially against tech platforms—because it delivers faster remedies without formal violation findings. A 2024 Tokyo court case and new JFTC monitoring rules signal tougher oversight, so global firms should

Slide summary: Japan’s disinformation approach—platform transparency, takedown reforms, free-speech safeguards, business obligations

Regulatory Updates

Tackling Disinformation Online: Japan's Approach and Free Speech Considerations

TL;DR: Japan tackles online disinformation mainly through process-focused platform transparency and enhanced notice-and-takedown rules, sidestepping direct content bans to safeguard constitutional free speech. Businesses must strengthen moderation workflows, ad-screening, and disclosure compliance. Table of Contents 1. Introduction 2. The Nature and Impact of Online Disinformation in Japan 3. Japan’

Slide summary: Japan’s revised Provider Liability Act—7-day takedown, single-step sender disclosure, updated safe harbours

Content Moderation and Intermediary Liability in Japan: Understanding the Revised Provider Liability Act

TL;DR: Japan’s revised Provider Liability Act modernises notice-and-takedown, streamlines sender-disclosure into a single-step court order, and clarifies intermediary safe harbours. Platforms now face tighter deadlines, record-keeping duties, and potential statutory damages—requiring robust moderation workflows and legal triage. Table of Contents 1. Introduction: A New Era of Platform

Slide overview: Japan’s multi-pillar platform regulation—competition, transparency, consumer, data and tax duties 2025-26

Competition / Antitrust Law

Japan's Evolving Platform Regulation Landscape: An Overview for Global Businesses

TL;DR: Japan is piecing together an issue-specific framework for digital-platform oversight: tougher competition rules for mobile gatekeepers, transparency laws for online malls, “soft-law” consumer-protection duties, and new security-tax measures. Global businesses must map which statute applies to which service and prepare for stricter disclosure, algorithm and data-handling obligations. Table

Slide summary: 2024 Tokyo ruling on fixed-price employee share repurchase—legal framework, court reasoning, drafting tips

Share Transfer Restrictions in Closely-Held Japanese Corporations: Analyzing Recent Case Law

TL;DR: A 2024 Tokyo District Court ruling upheld an employee share-repurchase clause that forced resale at acquisition cost—so long as dividends had been paid—underlining the fine line between legitimate control of ownership and public-policy violations in Japan’s closely-held corporations. Table of Contents 1. Share Transfer Restrictions

Slide summary: Japan’s beneficial-ownership debate—current gaps, G7/FATF pressure, proposed registry reforms, corporate impact

Corporate Governance

Beneficial Ownership Transparency in Japan: Current Debates and Future Directions

TL;DR: Japan lags global peers on beneficial-ownership (BO) transparency, relying on a semi-public corporate registry and securities filings. G7 and FATF pressure has spawned proposals for an open BO register, lower thresholds, and harsher sanctions. Businesses should prepare for stricter disclosure and KYC obligations in the next two years.

Slide summary: Constitutional and privacy challenges to Japan’s DBS Law—Article 13 proportionality, due-process safeguards, business risks

Constitutional Law

Constitutional Challenges on the Horizon? Privacy Concerns Surrounding Japan's DBS Law

TL;DR: Critics say Japan’s DBS Law risks over-collection and indefinite storage of criminal records, potentially violating Article 13 privacy rights. Constitutional challenges will likely hinge on proportionality, purpose limitation, and due-process safeguards. Businesses should prepare for stricter data-handling obligations and possible injunction scenarios. Table of Contents 1. Introduction:

Slide summary: Japan DBS Law—mandatory checks, duty-based risk assessment, HR actions, and legal safeguards

Labor & Employment Law

Navigating "Japan DBS": Background Checks and Employment Law in Child-Related Businesses

TL;DR: Japan’s DBS Law obliges child-facing businesses to run criminal-record checks and take “necessary measures.” Employers must integrate these checks into hiring, transfers, and dismissals while balancing privacy and strict labor-law protections. Failure to act invites liability and reputational harm. Table of Contents 1. The Legal Framework: A

Slide summary: Japan’s DBS Law—mandatory checks, employer duties, certification for private providers, HR implications

Regulatory Updates

Japan's New DBS Law: Protecting Children in Educational and Childcare Settings – Overview and Implications for Businesses

TL;DR: Japan’s new DBS Law mandates or enables criminal-record checks for people working with children. “School Establishments” must run checks and take “necessary measures,” while private providers may opt in via certification. Employers face new hiring, reassignment, and data-handling duties—failure risks administrative orders and reputational damage. Table