Notice

**Kindly Read This Notice Thoroughly and Carefully.

If a customer/remitter requests an international money transfer/remittance from KABAYAN International Ltd., we make confirmations on the transfer (e.g. purpose, information of beneficiary, etc.). Our company also checks that the destination of the transfer is not any of the countries/regions subject to money transfer restrictions made by the government. Identification/confirmation of the place of origin/shipping, even the good's nature if money transfer relates to importation of goods. 

KABAYAN International Ltd., as a remittance/fund transfer company and as per the governing domestic and international laws, monitors international money transfers. It is a part and obligation of our company's efforts to prevent money laundering and other financial crimes.

Kindly be aware that KABAYAN International Ltd., may suspend the processing of international funds transfer and/or other related operations without prior notice if our company consider that the transaction poses a risk of being misused and/or that there is other reason to justify the suspension. We will not be liable for any loss or damage you suffer as a result of the suspension. 

correspondence on the "Foreign Exchange and Foreign Trade Act" 

Our company needed to confirm that the transfer of funds does not fall under the "restrictions on trade-related payment", "restrictions on the use of funds," etc. This is under the obligation of banks, financial institution, etc. prescribed in Article 17 of the Foreign Exchange and Foreign Trade Act ("Foreign Exchange Act") 

Main Regulations on Funds Transfer pursuant to the Foreign Exchange and Foreign Trade Act 

Regulations concerning North Korea, Iran, and Russia. 

1. Restrictions on Trade-Related Payment concerning North Korea 

• Funds transfer pertaining to import or intermediary trade of any goods of which the place of origin or the region of shipment is North Korea (Article 16-5, Article 25-6, and Article 52 of the Foreign Exchange Act). 

• Funds transfer pertaining to intermediary trade of any goods of which the place of destination is North Korea (Article 48-3, Article 25-6 of the Foreign Exchange Act).

2.  Restrictions on the Use of Funds concerning North Korea 

• Payment to anyone involved in North Korea’s missile or weapons of mass destruction (“WMD”) program.

• Payment to anyone involved in North Korea’s nuclear-related program or programs relating to other WMD or ballistic missiles.

•  Funds transfer relating to activities that could contribute to North Korea’s nuclear-related, ballistic missile-related, or other WMD-related programs or activities.

3.  In-Principle ban on Payment to North Korea 

• Ban on payment to North Korea except for the case in which the amount is less than JPY 100,000 with humanitarian purposes. 

*Payments to the following recipients fall into the category, not limited to the remittance to North Korea. 

a.) Individual who has an address or residence (hereinafter referred to as "address, etc.”) in North Korea (* 1) ;

b.) Corporation or other group (hereinafter referred to as “corporation, etc.” ) having a main office in North Korea ;

c.) Branch, branch office and other office (hereinafter referred to as “branch, etc.”) of corporation such as b) located in foreign countries ;

d.) Corporation, etc. whose beneficial owner is a) or b) (* 2) ;

e.) Branch, etc. of the above d) located in foreign countries 

(*1) It is intended for individual with address, etc. in North Korea, regardless of nationality.

(*2) Example : Corporation, etc. with a main office in North Korea that holds more than a majority of the total number of issued shares of the corporation. Corporation, etc. that the majority of the officers are occupied by persons with address, etc. in North Korea. 

4. Restrictions on Use of Funds concerning Iran 

• Funds transfer pertaining to investment by a person related to Iran in Japanese companies engaged in nuclear-related activities. 

• Funds transfer made for the purpose of contributing to "Iran’s nuclear activities".

• Payment to anyone involved in Iran’s nuclear activities, etc. 

5. Russia-Related 

• Payment to anyone considered to be directly involved in the annexation of the Autonomous Republic of Crimea or destabilization of eastern Ukraine. 

• Funds transfer relating to import of goods originating in Autonomous Republic of Crimea or the City of Sevastopol. 

• Funds transfer pertaining to export of arms, etc. to the Russian Federation. 

• Funds transfer pertaining to issuance of securities by designated Russian Federation banks, etc. 

• Funds transfer pertaining to the prohibition of the provision of technology and services to Russia and Belarus. 

• Funds transfer pertaining to a ban on foreign direct investment related to Russia. 

• Funds transfer pertaining to import/export bans from/to the Russian Federation. 

Information of these restrictions are provided in the websites of the Ministry of Finance (MOF)/Ministry of Economy, Trade and Industry (METI).

Ministry of Finance (MOF)(Only available in Japanese) 

Sanction List : https://www.mof.go.jp/policy/international_policy/gaitame_kawase/gaitame/economic_sanctions/list.html 

Regulations : https://www.mof.go.jp/policy/international_policy/gaitame_kawase/gaitame/index.html

Ministry of Economy, Trade and Industry (METI)

https://www.meti.go.jp/english/policy/external_economy/trade_control/index.html 

Foreign direct investment in designated 5 industries requiring advance notification  

With regard to foreign direct investment in the following five(5) designated industries that require prior notification to the Ministry of Finance(MOF), as prescribed in Article 23 of the Foreign Exchange and Foreign Trade Act, and in Article 21 of the Foreign Exchange Ministerial Ordinance, we need to confirm that your funds transfer does not fall into the category below:

• Fishery 

• Leather or leather products manufacturing industry 

• Weapons manufacturing industry 

• Weapons manufacturing related industry 

• Drug manufacturing industry

regarding OFAC Regulations  

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury administers and enforces economic and trade sanctions such as trade ban and asset freeze based on U.S. foreign policy and national security goals against targeted foreign countries and regions, specified individuals and organizations. Such regulations are called OFAC regulations. Even though the sender and receiver of funds are not subject to OFAC sanctions, the funds transfer will be subject to sanctions if any person or region associated with the transaction is subject to the sanctions. 

A transaction is subject to OFAC regulations on these grounds : 

1. Iran, Cuba, North Korea, Syria, or the Crimea region of Ukraine is included in the residence of a party related to the transaction (such as an importer, exporter, bank, shipping company, shipping vessel, payer/payee of a remittance, and the beneficiary of a guarantee) or a place related to the transaction (such as the place of origin/shipping, destination, and the vessel’s flag of registry). 

2. The transaction involves any corporation or person specified by the U.S. government as a specified terrorist, specified narcotics trafficker, specified trafficker of weapons of mass destruction or other corporations or individuals that have an issue relating to nuclear proliferation. 

3. The transaction involves a U.S. person (including an overseas branch or subsidiary of a U.S. corporation), U.S. resident, U.S. corporation, U.S. financial institution, or an U.S. organization (including a U.S. branch or subsidiary of a non-U.S. corporation, non-U.S. financial institution, etc.) 

If the transaction is (potentially) subject to OFAC regulations, the company or any related government institution may check details of the transaction, and depending on the checking results, it may terminate or revoke the transaction at the company's or the governing institution's discretion. In addition to the checking of the transaction details, a U.S. bank acting as the intermediary or the payee may check the transaction details. If transaction becomes subject to an asset freeze under OFAC regulations, the company will not return the money that have already paid/sent for the transaction. In this case, the customer need to deal with the asset freeze by themselves such as requesting OFAC to lift the freeze. 

There are other Japanese, U.S., or international organizations’ sanction programs that prohibit or limit certain transactions. The details of these sanctions regulations are provided in the websites of the Ministry of Finance (MOF)/Ministry of Economy, Trade and Industry (METI), and the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury, etc. 

In compliance with the requirements of the Foreign Exchange and Foreign Trade Act and the Act on Prevention of Transfer of Criminal Proceeds, the company do not permit customers to perform international money transfers on behalf of third parties (individuals or companies). Money transfers may only be used for the purpose of sending the account holder’s own funds and confirms that the transaction constitutes the remittance of the account holder’s own funds. 

initiative to battle Money Laundering and Terrorist Financing  

Requests to customers

There has been growing priority issue that both the Japanese and international community needs to address regarding the importance of anti-money laundering and combating the financing of terrorism. The Financial Services Agency(FSA) has developed and issued the “Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism” in February 2018 to provide essential elements on effective AML/CFT measures for financial institutions. 

As per government law and regulations, in view of this matter, thorough checking on measures to prevent money laundering and terrorist financing are being implemented such as :

1. Matters not covered in the registration forms may be requested.

• Other than basic matters (such as name, present and/or previous address, contact number, email address, date of birth, nationality relationship; both by the sender and/or the beneficiary), the company may ask the detail of the attributes (such as working position, name and nature of occupation, purpose/background of the transaction, source of funds such as copy of employment details or copy of financial details, and use of funds, etc.) 

2. Show of proof or evidence.

• Our company may request to show other valid government identification, or evidence of the background, details, or legality of transactions or funds transfer.

3. Restrict/decline/restrict/suspend/close transactions or request.

• If requested information are not provided or for other reasons, the company may decline/restrict/suspend/close any existing or prior transactions.

Kindly inform our company if any of the money transfers falls within the above restrictions. Our company appreciates customer's  understanding and cooperation when a request to notify our company in writing of the purpose of money transfer and/or the place of origin/region of shipment about the relevant goods or when a request to declare that the money transfer is not subject to the above restrictions. Understanding and cooperation with the company's confirmation is also appreciated in respect to the case regarding international money transfer related to North Korea, Iran, or Russia.