JAPAN Trends and Developments Contributed by: Yuhei Sakao, Ryota Saito and Shunsuke Ebihara, Miura & Partners
rity clearance assessment and have been found not to pose a risk of unauthorised disclosure may handle such information, including in private businesses. In the event of leakage or other violations of the Act, criminal penalties are imposed. As critical economic security information includes information related to critical infrastructure and sup - ply chains of critical products, it is important for busi - nesses involved in these fields to be aware of the Act’s content. CESIPA and the security clearance system established under the Act focus on the following points. Content of critical economic security information Government authorities may designate information that meets all of the following three requirements as critical economic security information: • certain information concerning critical infrastruc - ture and supply chains of products; • information that is not publicly disclosed; and • information particularly required to be kept secret due to the risk of impairing Japan’s national secu - rity if disclosed. Specifically, the following types of information are expected to be designated as critical economic secu - rity information: • information on countermeasures against external attacks (such as cyber-attacks) on critical infra - structure held by electricity, gas, telecommunica - tions, transportation and financial services provid - ers; • information on measures to protect supply chains of critical products such as semiconductors and storage batteries; • information concerning vulnerabilities in critical infrastructure or supply chains; and • information obtained through research or studies in areas where Japan has technological superiority regarding critical infrastructure or supply chains. Provision of critical economic security information and security clearance Where necessary, government authorities may provide critical economic security information not only to other
government authorities in Japan and foreign govern - ments, but also to private businesses. In the case of private business operators, CESIPA requires that such operators meet the prescribed security standards and conclude a contract with government authorities. Only those who have undergone the security clear - ance assessment by government authorities and have been found not to pose a risk of unauthorised dis - closure may handle such information. If the recipient is a private business, its employees who handle the information must also undergo a security clearance assessment. The security clearance assessment is conducted with the consent of the individual and involves investiga - tions into the following matters: • the name, date of birth, nationality and address of the subject and their family members; • any involvement they may have had in espionage targeting critical economic security information, or terrorism targeting critical infrastructure or supply chains; • their criminal and disciplinary records; and • their credit status and other financial situation. Penalties Any person engaged in the handling of critical eco - nomic security information who discloses such infor - mation in the course of duty without authorisation will be subject to imprisonment for not more than five years, or to a fine of not more than JPY5 million, or both. Attempted and negligent acts are also punish - able. Furthermore, if a representative or an employee of a corporation discloses such information, the corpora - tion itself will be subject to a fine of JPY5 million. Impact of CESIPA As outlined above, when private businesses handle critical economic security information provided by government authorities, strict information manage - ment is required. In the event of leakage or other vio - lations, criminal penalties may be imposed, and the impact is therefore significant.
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