(Purpose of this Law) Article 1. The purpose of this law is to define clearly the scope of responsibilities and powers of the Foreign Exchange Control Board and to provide for an organization fit for the efficient achievement of the administrative affairs under the jurisdiction of the Foreign Exchange Control Board.

(Establishment) Article 2. In accordance with the provisions of Article 3 paragraph 2 of the National Government Organization Law (Law No.120 of 1948), the Foreign Exchange Control Board (hereinafter referred to as the Board) is hereby set up as an external organ of the Prime Minister's Office.

(Responsibilities) Article 3. In order to assure the adequate and proper use of the foreign exchange funds of Japan in a manner which will aid in the improvement and healthy development of the national economy, the Board shall take charge of the following affairs: (1) To manage the Foreign Exchange Special Account; (2) To assure that the limits as established in the foreign exchange budget are not exceeded, and that conditions imposed in the budget are complied with; (3) To maintain complete current records of all foreign exchange and foreign trade transactions, for the use of any concerned government agency; (4) To submit to the Prime Minister periodic reports, at least quarterly, showing the volume and nature of foreign exchange transactions, and the relation of the results thereof to the economic rehabilitation of Japan; (5) To make recommendations on the foreign exchange policy to the Prime Minister and to the government agencies concerned.

(Powers) Article 4. For the purpose of carrying out the responsibilities as provided for in this law, the Board shall have the powers as listed below. Such powers shall, however, be execised in pursuance of laws (including orders issued thereunder): (1) To perform within the limits of budgetary appropriations those acts pertaining to expenditures necessary for carrying out its responsibilities; (2) To collect revenues and make payments necessary for carrying out its responsibilities; (3) To administer personnel affairs, including appointment, dismissal, awards and discipline; (4) To distribute or publish statistics and research data pertaining to the affairs under its jurisdiction; (5) To provide information to the general public concerning the affairs under its jurisdictions; (6) To adopt the official seals of the Board; (7) To collect reports relative to its responsibilities; (8) To establish procedures for foreign exchange transactions and to give concurrence to procedures for foreign trade transactions with respect to the affairs under its jurisdiction; (9) To prescribe procedures for and operate the system of concentration of foreign funds into the Foreign Exchange Special Account and to operate that Account; (10) To supervise the foreign exchange banks with respect to the acquisition and use of foreign funds within the limits and conditions established by the foreign exchange budget; (11) To prescribe payment terms of international transactions; (12) In addition to those listed in the preceding items, such powers as placed under the jurisdiction of the Board in accordance with laws (including orders issued thereunder).

(Organization, Appointment and Dismissal of the Chairman and Members) Article 5. The Board shall consist of a chairman and four (4) members. 2 The chairman and members shall be appointed by the Prime Minister after obtaining the consent of both Houses of the National Diet from among persons of recognized experience and knowledge regarding foreign exchange and foreign trade. 3 If the consent of both Houses cannot be obtained as the National Diet is in recess or the House of Representatives has been dissolved, when the term of office of the chairman or the member expires or a vacancy in the office occurs, the Prime Minister may appoint the chairman or the member from among persons of recognized experience and knowledge regarding foreign exchange and foreign trade, notwithstanding the provisions of the preceding paragraph. 4 With regard to the appointment of the preceding paragraph, it shall be necessary to obtain ex-post facto approval of both Houses of the National Diet. In this case, when the ex-post facto approval cannot be obtained, the Prime Minister shall dismiss the chairman or the members.

(Term of Office of the Chairman and Members) Article 6. The term of office of the chairman and the members shall be three (3) years. However, the term of office of the chairman or members appointed to fill a vacancy shall be the remainder of the term of the predecessors. 2 The chairman and the members may be reappointed.

(Guarantee of the Status of the Chairman and Members) Article 7. The chairman or member shall not be dismissed against his will during his tenure of office except under one of the following circumstances: (1) When he has been declared legally incompetent or quasi-incompetent or bankrupt; (2) When he has been sentenced for violation of the provisions of this law; (3) When he has been sentenced to imprisonment or a heavier penalty; (4) When the Prime Minister has decided that he is incapable of discharging his duties because of physical or mental disabilities; (5) When the Prime Minister has decided that he has violated the obligations of his office or otherwise committed conduct unbecoming of a chairman or a member. 2 In case the chairman or member falls under any one of the preceding items, the Prime Minister shall remove him from office.

(The Chairman) Article 8. The chairman shall preside over the business of and represent the Board. 2 The Board shall decide in advance who among the members shall act for the chairman in case he is incapacitated.

(Decisions of the Board) Article 9. The proceedings of the Board shall be decided by majority vote of the members present. In case the vote is even, the chairman shall cast the deciding vote.

(Compensation of the Chairman and Members) Article 10. The compensation of the chairman and members shall be provided for by law separately.

(Prohibition of Specific Acts by the Chairman and Members) Article 11. The chairman and members shall not, during their tenure of office, engage in any of the following activities: (1) Become a candidate for the National Diet or the assembly of a local public body or any elective public office or actively engage in political activities; (2) Engage in other remunerative work, except when permitted by the Prime Minister; (3) Engage in business or other occupations for pecuniary gain.

(Issuance of Regulation) Article 12. The Board may issue the Foreign Exchange Control Board Regulations on the affairs under its jurisdiction in order to implement the provisions of laws and orders or on the basis of special delegation by laws and orders.

(Executive Office) Article 13. The executive office of the Board shall deal with the affairs under the jurisdiction of the Board.

(Control Division) Article 14. The Control Division shall be set up in the executive office. 2 The Control Division shall take charge of the affairs concerning control and operation of the Foreign Exchange Special Account among the affairs under the jurisdiction of the executive office.

(Kansai Office) Article 15. The Kansai office shall be set up in the executive office. 2 The Kansai office shall be established in Osaka-City. 3 The Kansai office shall take charge, with respect to the affairs under the jurisdiction of the executive offices, necessary liaison business in the Kansai district. 4 The organization of the Kansai office shall be provided for by the regulation of the Board.

(Legal Advisor) Article 16. The legal advisor may be attached to the Board. 2 The legal advisor shall dispose of legal problems concerning the affairs of the Board. 3 The legal advisor shall serve part-time, and the salary and other necessary matters thereof shall be provided for by Cabinet Order.

(Location of Office) Article 17. The Board shall maintain its offices in the head and branch offices of the Bank of Japan as required.

(Handling of Business by the Bank of Japan) Article 18. The Board may have the Bank of Japan handle a part of its business in accordance with directions set forth by the Board. 2 In case of the preceding paragraph, the expenses required for the handling of such business may be borne by the Bank of Japan.

(The Obligation to Preserve Secrecy) Article 19. The chairman, members of the Board, personnel of the Bank of Japan entrusted to handle the business in accordance With paragraph 1 of the preceding Article and others who previously occupied such positions shall not divulge or male surreptitious use of secrets which they may have acquired in the course of the execution of their duties.

(Personnel of the Executive Office) Article 20. With respect to appointment, dismissal, promotion, disciplinary punishment and other matters concerning personnel administration of the executive office, the provisions of the National Public Service Law (Law No.120 of 1948) shall apply. 2 Experts on accounting and statistics among the personnel to be filled in the executive office may serve part-time as the "members of the executive office" .

(Fixed Number) Article 21. The fixed number of personnel for the executive office shall be provided for by law separately.

(Penalty Provision) Article 22. Any person who, in violation of the provisions of Article 19, divulges or makes surreptitious use of secrets shall be liable to imprisonment not exceeding one (1) year or to fine not exceeding 50,000 yen.