Japan
Answer ... The primary laws that govern anti-corruption in Japan are the Penal Code and the Unfair Competition Prevention Act.
The Penal Code prohibits active and passive bribery of domestic public officials (domestic bribery) (Articles 197–198). The Unfair Competition Prevention Act prohibits active bribery of foreign public officials (‘foreign bribery’) (Article 18), but does not prohibit passive bribery of foreign public officials.
In the private sector, the Companies Act prohibits:
- active and passive bribery of company directors and officers (Article 967); and
- active and passive bribery concerning the exercise of certain shareholders’ rights (Article 968) (see question 2.3).
Also, some special laws include provisions that punish the bribery of those who occupy roles of a public nature (see question 2.3).
In addition, some industries regulate bribery through their internal rules. For instance, the Japan Pharmaceutical Manufacturers Association Code of Practice prohibits member companies from providing gifts or cash in order to exert inappropriate influence on the decision making of stakeholders such as:
- researchers;
- healthcare professionals;
- medical institutions;
- patient organisations; and
- wholesalers.
The code, however, is not a statute and thus cannot provide for the imposition of criminal penalties.
Japan
Answer ... Japan signed the Organisation for Economic Co-operation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions in 1997. The convention became effective in Japan in 1999 after the Unfair Competition Prevention Act was amended to criminalise the bribery of foreign public officials.
Japan also signed the United Nations Convention against Transnational Organized Crime in 2000 and the United Nations Convention against Corruption in 2003, both of which became effective in Japan in 2017.
Japan
Answer ... Domestic bribery: There are no accessible directives or guidelines on domestic bribery. However, the National Public Service Ethics Act (NPSEA) and the National Public Service Ethics Code (NPSEC) regulate the acts of national public officials. The NPSEA obliges high-ranking national public officials to submit a written report of any benefit that they receive which costs more than JPY 5,000. The NPSEC further lists various acts that are prohibited or permitted for national public officials. For example, the receipt of gifts from interested parties is in principle prohibited; but the receipt of gifts of souvenirs from interested parties at a buffet-style party that many persons attend is allowed. While the NPSEA and NPSEC regulate the acts of national public officials, their provisions may also be useful for private businesses when interacting with national public officials.
Foreign bribery: The Ministry of Economy, Trade and Industry (METI) published the Guidelines for the Prevention of Bribery of Foreign Public Officials in 2004 (most recently amended in 2021). While METI has no investigatory powers, it governs the Unfair Competition Prevention Act. The guidelines set out measures to prevent foreign bribery in the form of:
- basic views;
- preferred preventive system methodologies for businesses;
- parent companies’ assistance with the preventive systems of subsidiaries;
- responses in emergency situations; and
- other matters.
It also sets out explanations of the relevant provisions of the Unfair Competition Prevention Act.
Japan
Answer ... No particular authority has exclusive responsibility for enforcing the anti-corruption laws in Japan. As in ordinary criminal cases, police officers and public prosecutors have investigatory powers. Each prefectural police department appoints a police officer with responsibility for preventing foreign bribery. Similarly, each special investigation division in district prosecutors’ offices with special responsibility for economic and financial crimes has a public prosecutor in charge. Only public prosecutors have the power to prosecute; while the courts have the power to impose criminal penalties.
Japan
Answer ... The number of reported cases of corruption has increased in recent years. According to the White Paper on Police 2022 published by Japan’s National Police Agency, in 2018, 2019, 2020 and 2021 respectively, a total of 46, 49, 57 and 72 cases of corruption were reported.
Japan was ranked as the 18th least corrupt country in the world in the Corruption Perceptions Index in 2022 published by Transparency International.
Japan
Answer ... In 2019, after it had completed its Phase 4 evaluation of Japan’s implementation of the OECD Anti-Bribery Convention and related instruments, the OECD Working Group on Bribery advised that Japan needed to step up enforcement of its foreign bribery laws and strengthen the powers of law enforcement agencies to proactively detect, investigate and prosecute foreign bribery offences. The working group stated that Japan demonstrated a particularly low level of anti-bribery enforcement. The enforcement rate is commensurate with neither:
- the size and export-oriented nature of the Japanese economy; nor
- the high-risk regions and sectors in which Japanese companies operate.
In order to improve Japan’s implementation of the convention, the working group recommended that Japan take certain measures, including:
- improving key elements of its legislative framework – in particular, to increase the level of sanctions and the limitation period for foreign bribery;
- broadening the framework for establishing nationality jurisdiction over legal persons;
- empowering its agencies to detect foreign bribery so that they can become more proactive in this respect;
- ensuring that the Ministry of Justice’s role in transmitting and clarifying certain allegations does not create unnecessary delays in opening investigations;
- ensuring that the prosecution’s role in conducting investigations and prosecutions is exercised independently of the executive, and in particular the Ministry of Justice and METI; and
- ensuring that both the police and the prosecution are more proactive and coordinated when investigating foreign bribery, including by reducing reliance on voluntary measures and confessions.