Bribery offenses in Japan: A Guide
This overview details bribery offenses and related legal mechanisms in Japan, based on facts from DLA Piper’s Global Bribery Offenses Guide.
Enforcement Bodies
In Japan, the primary bodies responsible for investigating and prosecuting bribery offenses are the police and the public prosecutor.
Legal Consequences of Bribery
The penalties for bribery offenses in Japan vary depending on the legislation under which a conviction is secured.
Under the Criminal Code (CC):
* Private Individuals: Imprisonment with work for up to three years or a fine of up to JPY2.5 million (Article 198 of the CC).
* Companies: The CC does not provide for the punishment of companies for bribery committed by their directors or employees.
Under the Unfair Competition Prevention Act (UCPA):
* Private Individuals: Imprisonment with work for up to ten years,a fine of up to JPY30 million,or both (Article 21 Paragraph 4 Item 4 of the UCPA).
* Companies: If a representative, agent, employee, or worker of a company engages in corruption of a foreign public official related to the company’s business, the company faces a fine of up to JPY1 billion, in addition to any penalties for the individual offender (Article 22 Paragraph 1 Item 3 of the UCPA).
Under the Companies Act (CA):
* Directors/Officers (Receiving Bribes): Imprisonment with work for up to five years or a fine of up to JPY5 million (article 967 Paragraph 1 of the CA).
* Private Individuals (Giving Bribes to Directors/Officers): Imprisonment with work for up to three years or a fine of up to JPY3 million.
* Shareholders (Receiving Bribes): Imprisonment with work for up to five years or a fine of up to JPY5 million (Article 968 Paragraph 1 of the CA).
* Private Individuals (Giving Bribes to Shareholders): Imprisonment with work for up to five years or a fine of up to JPY5 million (Article 968 Paragraph 1 of the CA).
Deferred Prosecution Agreements (DPAs) and Settlement Mechanisms
Japan implemented a system resembling DPAs in June 2018. Under the Code of Criminal procedure (CCP),a public prosecutor may,for specific crimes including bribery,fraud,embezzlement,and tax crimes,agree to:
* Not prosecute the case.
* Withdraw the prosecution.
* Prosecute with specified counts or penal statutes.
* Request changes to counts or penal statutes.
* Recommend a lighter sentence to the court.
* Prosecute under summary proceedings (Article 350-2 Paragraph 1 Item 2 of the CCP).
A DPA can be executed if the prosecutor deems it necessary,considering the value of evidence obtained through the suspect or defendant’s actions,which must include one or more of the following:
* Providing truthful statements to investigation authorities.
* Testifying truthfully in court.
* Producing evidence or providing other assistance to investigators (Article 350-2 Paragraph 1 Item 1 of the CCP).
The Japanese DPA process requires the consent of the suspect or defendant’s counsel, but does not require court approval (Article 350-3 of the CCP).
