Removal of the Restriction on PowerDirect Transactions of the Customers Who Left Japan

December 5, 2023

SBI Shinsei Bank has been restricting PowerDirect transactions of the customers who left Japan in or after October 2021, however, the Bank has decided to remove the restriction. PowerDirect of target customers is ready to offer the same service before they left Japan (i.e., bank transfer to Japan is also available), which will be communicated to target customers separately.
Based on the Guidelines for Countermeasures against Money Laundering and Terrorist Funding published by the FSA in February 2018, PowerDirect regularly displays a message asking for the confirmation of customer information. Please follow the message when it is displayed.

Restriction on Transactions of Customers Leaving Japan

July 1, 2021

Transactions using a PowerFlex accounthave been targeting individual customers living in Japan, and we have therefore been asking them to cancel their account when they leave Japan, as a general rule.Nevertheless, we have accepted customers maintaining their account in some cases including when customers own a financial product that has not reached its maturity.

Meanwhile, countermeasures against money laundering and terrorism financing have become more important in recent years. Under such circumstances, we confirm customer information and purposes of transactions over the counter or by post based on Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism published by the FSA in February 2018, in order to implement countermeasures against money laundering and terrorism financing that are increasingly complex and sophisticated.

We will continue to ask customers leaving Japan to cancel their account but have decided to restrict the following transactions of customers who have exceptionally maintained their PowerFlex accountin order to respond to such a change in the environment surrounding financial institutions. We apologize for causing you any inconvenience but appreciate your understanding and cooperation on this matter.

Target customers:

Customers leaving Japan on or after October 1, 2021
Customers who are found on or after October 1, 2021 to have already left Japan

Restrictions to be imposed on and after October 1, 2021 on transactions of the target customers*

Account transfers (Transactions through Shinsei PowerDirect, Shinsei PowerCall and others)
Foreign remittance transactions
Some of other PowerFlex transactions

Due to a reasonable explanation other than leaving Japan (e.g., a content of a customer’s transaction), customers’ PowerFlex accounts may be cancelled upon notice to the customers.
Due to a reasonable explanation other than leaving Japan (e.g., a content of a customer’s transaction), customers’ PowerFlex accounts may be cancelled upon notice to the customers.

Effective October 1, 2021, we will make the following revision to our agreements.

■ Targets agreements:
Common Customer Agreement on PowerFlex Transaction

■ Revises parts are colored in red.

Before revision Before revision	After revision on October 1, 2021 After revision on October 1, 2021
10. Cancellation (2) Where any one of the below occurs, the Bank may suspend this Transaction or cancel the PowerFlex Account and this Transaction upon giving you notice thereof. If the Bank cancels this Transaction by way of notice, the cancellation shall become effective when the Bank dispatches the cancellation notice addressed to the name and address of a customer as notified to the Bank, irrespective of whether it duly arrives or not: (i) When it becomes clear that a registered person to this Transaction does not exist or that this Transaction has not been initiated based on the intention of the registered person of this Transaction; (ii) When a customer of this Transaction breaches Paragraph (1) of Article 9 (Prohibition of Assignment and Pledging); (iii) When it is reasonably acknowledged that this deposit is or may be used for money laundering, financing of terrorism, or transactions breaching laws and ordinances related to economic sanctions; (iv) When it is decided that a trustful relationship between the Bank and a customer has been damaged because the customer, despite the Bank’s request, has not refrained from, transactions the frequency or style of which exceeds a socially reasonable extent and which are considered to be damaging to the banking services; (v) When it is decided that this Transaction has been used or is considered to be used for any activity contrary to laws, ordinances or regulations, and public policy; (vi) When the Bank has judged that this Transaction is or may be initiated for business purposes; or (vii) When a customer who does not have a Japanese nationality has stayed longer than the expiry of the period of stay he/she submitted to the Bank.	10. Cancellation (2) Where any one of the below occurs, the Bank mayrestrict orsuspend this Transaction or cancel the PowerFlex Account and this Transaction upon giving you notice thereof. If the Bank cancels this Transaction by way of notice, the cancellation shall become effective when the Bank dispatches the cancellation notice addressed to the name and address of a customer as notified to the Bank, irrespective of whether it duly arrives or not: (i) When it becomes clear that a registered person to this Transaction does not exist or that this Transaction has not been initiated based on the intention of the registered person of this Transaction; (ii) When a customer of this Transaction breaches Paragraph (1) of Article 9 (Prohibition of Assignment and Pledging); (iii) When it is reasonably acknowledged that this deposit is or may be used for money laundering, financing of terrorism, or transactions breaching laws and ordinances related to economic sanctions; (iv) When it is decided that a trustful relationship between the Bank and a customer has been damaged because the customer, despite the Bank’s request, has not refrained from, transactions the frequency or style of which exceeds a socially reasonable extent and which are considered to be damaging to the banking services; (v) When it is decided that this Transaction has been used or is considered to be used for any activity contrary to laws, ordinances or regulations, and public policy; (vi) When the Bank has judged that this Transaction is or may be initiated for business purposes; or (vii) When a customer who does not have a Japanese nationality has stayed longer than the expiry of the period of stay he/she submitted to the Bank. (viii) When a customer has decided to live overseas or when he/she lives overseas.

Before revision

After revision on October 1, 2021

10. Cancellation
(2) Where any one of the below occurs, the Bank may suspend this Transaction or cancel the PowerFlex Account and this Transaction upon giving you notice thereof. If the Bank cancels this Transaction by way of notice, the cancellation shall become effective when the Bank dispatches the cancellation notice addressed to the name and address of a customer as notified to the Bank, irrespective of whether it duly arrives or not:
(i) When it becomes clear that a registered person to this Transaction does not exist or that this Transaction has not been initiated based on the intention of the registered person of this Transaction;
(ii) When a customer of this Transaction breaches Paragraph (1) of Article 9 (Prohibition of Assignment and Pledging);
(iii) When it is reasonably acknowledged that this deposit is or may be used for money laundering, financing of terrorism, or transactions breaching laws and ordinances related to economic sanctions;
(iv) When it is decided that a trustful relationship between the Bank and a customer has been damaged because the customer, despite the Bank’s request, has not refrained from, transactions the frequency or style of which exceeds a socially reasonable extent and which are considered to be damaging to the banking services;
(v) When it is decided that this Transaction has been used or is considered to be used for any activity contrary to laws, ordinances or regulations, and public policy;
(vi) When the Bank has judged that this Transaction is or may be initiated for business purposes; or
(vii) When a customer who does not have a Japanese nationality has stayed longer than the expiry of the period of stay he/she submitted to the Bank.

10. Cancellation
(2) Where any one of the below occurs, the Bank mayrestrict orsuspend this Transaction or cancel the PowerFlex Account and this Transaction upon giving you notice thereof. If the Bank cancels this Transaction by way of notice, the cancellation shall become effective when the Bank dispatches the cancellation notice addressed to the name and address of a customer as notified to the Bank, irrespective of whether it duly arrives or not:
(i) When it becomes clear that a registered person to this Transaction does not exist or that this Transaction has not been initiated based on the intention of the registered person of this Transaction;
(ii) When a customer of this Transaction breaches Paragraph (1) of Article 9 (Prohibition of Assignment and Pledging);
(iii) When it is reasonably acknowledged that this deposit is or may be used for money laundering, financing of terrorism, or transactions breaching laws and ordinances related to economic sanctions;
(iv) When it is decided that a trustful relationship between the Bank and a customer has been damaged because the customer, despite the Bank’s request, has not refrained from, transactions the frequency or style of which exceeds a socially reasonable extent and which are considered to be damaging to the banking services;
(v) When it is decided that this Transaction has been used or is considered to be used for any activity contrary to laws, ordinances or regulations, and public policy;
(vi) When the Bank has judged that this Transaction is or may be initiated for business purposes; or
(vii) When a customer who does not have a Japanese nationality has stayed longer than the expiry of the period of stay he/she submitted to the Bank.
(viii) When a customer has decided to live overseas or when he/she lives overseas.

End