Kei Sumikawa | Sumikawa Law Office | Japan | English Speaking Lawyer

New Criminalization of Cannabis Use: Warning for Foreign Residents and Tourists

Recently (March 2025) in Japan, there was the first arrest case for the use of cannabis under the newly revised Cannabis Control Act (which came effect from December 2024).

Key Point of the Legal Amendment: Criminalization of Use

Previously, under Japan’s Cannabis Control Act, while the “possession” of cannabis was punishable, the act of “using” it was not criminalized (unlike stimulants, etc.). However, due to the recent legal revision, the “use” of cannabis itself is now clearly defined as a criminal offense and subject to punishment.

Penalties for the crime of using cannabis in Japan:

Simple use: imprisonment for up to 7 years
For profit: imprisonment for between 1 and 10 years, or a fine of up to 3 million yen, or both, depending on the circumstances of the case

Warning for Foreign Residents, Especially Young People

In recent years, there has been an increasing trend of foreign nationals, particularly young Americans residing in Japan, being arrested for purchasing or using cannabis within the country, potentially influenced by different legal standards or social acceptance in their home countries or states. Before this amendment, if cannabis (as physical evidence of possession) was not found during a police investigation or questioning, prosecution or arrest did not occur.

However, this has now changed. Following the legal revision, even if an individual is not found possessing cannabis at the time of investigation, if past use is confirmed through scientific methods such as urine analysis, they can be arrested, detained, and potentially face criminal trial for the offense of using cannabis.

Severe Consequences of a Drug Conviction

Receiving a guilty verdict for a drug offense in Japan (including cannabis, MDMA, stimulants, etc.) carries extremely serious consequences beyond the imposed criminal sentence, particularly under immigration law. Specifically, it typically results in deportation (forced removal) from Japan and, as a general rule, a permanent ban on re-entering the country in the future.

For individuals who have already established a life in Japan, with jobs, families, and community ties, the impact of such consequences is immeasurable, potentially overturning their entire lives. Furthermore, this extends beyond personal repercussions, causing significant trouble and distress to family members, friends, employers, and others in their social network.

Therefore, we urge people to understand that regulations concerning illegal drugs, including cannabis, are strict in Japan, potentially more so than in some other countries. This applies equally to other synthetic drugs like MDMA. It is imperative to accurately understand Japanese laws and strongly reaffirm your commitment to having absolutely no involvement with any illegal drugs while in Japan. A casual attitude or misunderstanding could lead to irreversible consequences.

Drug offenses profoundly impact your future and the lives of those around you. We strongly encourage compliance with Japanese laws and hope you lead a safe and healthy life in Japan.

Guide to Purchasing Real Estate in Japan for Foreigners

Increasing Popularity of Japanese Real Estate

In recent years, Japan’s real estate market has attracted growing interest from foreign investors and individuals seeking second homes. With a high-quality infrastructure, and appealing urban and rural properties, Japan presents a compelling investment opportunity for non-residents. Cities such as Tokyo, Osaka, and Fukuoka, as well as resort areas like Niseko, Hakuba and Hakone, have experienced rising demand from international buyers.

Rising Inquiries About Properties in Tokyo and Resort Areas

Our firm has seen an increase in inquiries from foreign clients interested in purchasing real estate in Japan. Many inquiries focus on properties in the greater Tokyo area, where demand remains strong, as well as vacation homes in popular resort regions. Whether purchasing for investment, personal use, or as part of a long-term relocation plan, it is essential to understand the legal and financial processes involved in real estate transactions in Japan.

Finding a Real Estate Agent Who Can Communicate in English

One of the most critical steps in purchasing real estate in Japan is finding an agent who can effectively communicate in English. While some larger real estate firms cater to international buyers and have English-speaking staff, many local agencies primarily operate in Japanese. Working with a reliable agent who understands both the language and the complexities of Japanese property transactions can significantly streamline the process and help avoid potential misunderstandings.

Understanding the Property Purchase Process in Japan

Unlike in some countries where real estate transactions involve extended escrow periods, transactions in Japan are typically completed upon the simultaneous exchange of funds and ownership documents. Therefore, buyers must ensure that payment can be confirmed immediately upon transfer.

A major challenge for foreign buyers is the requirement for a Japanese bank account to facilitate the transaction. Many sellers will only finalize a sale if funds are transferred from a domestic bank account, where instant verification is possible. However, opening a Japanese bank account usually requires a residential address in Japan, which poses a significant obstacle for non-residents.

The Importance of Legal Support in Real Estate Transactions

For foreigners without a Japanese address, obtaining legal support of an attorney from the contract stage is highly beneficial. An attoreny (Bengoshi) can assist with the transaction process, ensuring compliance with legal requirements and facilitating the payment process. An attorney handling the case can hold purchase funds in a trust account and manage the payment of the purchase price, ensuring a smooth and secure transaction process. However, please note that an attorney cannot be solely responsible for handling payments; payment support must be part of the broader legal services related to the case.

Navigating Japan’s real estate market as a foreigner can be complex, but with the right legal and professional support, it is entirely feasible. Our law firm provides comprehensive assistance, from contract negotiations to payment procedures, ensuring that foreign buyers can acquire real estate in Japan smoothly and legally.

Beware of Investment Fraud

There has been a recent surge in investment fraud cases where victims are deceived into sending money to individuals they meet through social media. Scammers often create profiles that appear wealthy or use attractive photos to lure victims into fraudulent investment schemes.

Don’t Fall for Sweet Promises

Typically, the scammers introduce new and complex investment methods, such as cryptocurrencies and foreign securities, to skillfully lure victims. In many cases, the money is never actually invested in cryptocurrency or securities; the scammer simply disappears with all the funds.

Be careful of phrases like “guaranteed profits” or “principal guaranteed.” If it sounds too good to be true, it probably is. It is crucial to understand that promising a return of principal investment to raise funds is illegal in Japan.

Sending money to someone you’ve only met online is incredibly risky, and recovering your funds can be extremely difficult. Even with legal counsel, retrieving your lost money is very difficult and often impossible.

Beware of Secondary Victimization by Lawyers

While ethical lawyers will clearly explain the risks involved and the low probability of recovering your money, some unscrupulous lawyers may exploit your situation. They might give you false hope and charge exorbitant fees while doing very little to help. They might make token gestures, such as sending faxes to investigative authorities or banks, and claim they have frozen the scammer’s account. However, by that time, the stolen funds are usually long gone.

Be cautious of law firms that heavily advertise their services for recovering investment fraud losses, as some may be scams themselves.

Warning message from Kanagawa Bar Association (Japanese only)
https://www.kanaben.or.jp/news/info/2024/post-412.html

What to Do if You Are a Victim of Investment Fraud

Contact the police.
Contact the bank where you sent the money.
If you need legal advice, consult your local bar association and ask if they have a consumer consultation service.

Helpful Resources:

The Japanese Bankers Association:
https://www.zenginkyo.or.jp/en/
Provides information and contact details for reporting financial crimes.

Local bar association:
https://www.nichibenren.or.jp/en/legalinfo/legal.html
Each local bar association has a designated complaints desk to handle complaints about its member lawyers. This complaint desk is called Shimin Madoguchi.

Protect Yourself from Investment Fraud:

Don’t readily engage with investment offers from people you’ve just met online.
Don’t be fooled by promises of “guaranteed profits” or “principal guaranteed.”
If you’re unsure, consult with your family or close friends.
Utilize consultation services provided by the police or the local bar association.

Our Law Firm Does Not Handle Investment Fraud Cases | (This article was created to prevent secondary victimization.)

Our firm does not specialize in investment fraud cases, so we are unable to provide advice beyond the information outlined above. For further assistance, please contact your local bar association to arrange a legal consultation. Even in this case, please understand that it is generally difficult to obtain relief for damages related to investment fraud before seeking a consultation.

Legal Info & Services (Japan Federation of Bar Associations)
https://www.nichibenren.or.jp/en/legalinfo.html

The Legality of Non-Compete Obligations

Employees may be restricted from working for competitors or starting competing businesses after their resignation. This is called a non-compete obligation. (競業避止義務 Kyogyo-hishi-gimu in Japanese)

Non-compete obligations may be imposed on employees after their resignation based on employment contracts or individual agreements.

Validity of a non-compete obligation

However, imposing a non-compete obligation on employees after their resignation is not freely allowed, as it could infringe on their freedom of occupation. Such obligations are interpreted restrictively at the court case.

Specifically, the validity of a non-compete obligation is determined by considering the following factors:

The agreement stipulating the non-compete obligation must be legally valid as an employment contract.
Factors considered when determining the validity of a non-compete obligation (matters considered in court):
(1) Whether there is a legitimate business interest of the company to protect.
(2) Based on (1), whether the content of the non-compete obligation is reasonable in light of its purpose and limited to a necessary scope, and whether the employee’s position justifies the necessity of the non-compete obligation.
(3) Whether there is a geographical limitation.
(4) The duration of the non-compete obligation.
(5) Whether necessary restrictions are placed on the scope of prohibited competitive activities.
(6) Whether compensatory measures are taken (e.g., increased retirement allowance).

Consult an Expert on Non-Compete Obligations

Companies imposing non-compete obligations risk invalidating the provision itself if they impose excessively strict obligations beyond the necessary limit. Therefore, it is essential to create appropriate provisions tailored to the company’s specific circumstances.

It is advisable to consult with a legal professional, such as an attorney, when establishing provisions related to non-compete obligations. Employees who have questions about the content of a non-compete obligation with their company are also advised to consult with an attorney when considering resignation.

Caution Regarding Earphone Use While Cycling

Several prefectures in Japan, including Tokyo and Kanagawa, prohibit the use of earphones while cycling under local ordinances. This is because wearing earphones can make it difficult to hear surrounding sounds and voices, which could hinder safe cycling. In fact, there have been several accidents resulting in fatalities where cyclists wearing earphones collided with pedestrians.

Furthermore, although the Road Traffic Act (a national law) does not explicitly prohibit the use of earphones, cycling while unable to grasp the surrounding situation due to earphone use may constitute a violation of the safe driving obligation. (And, if you are listening to music with earphones, you may be committing this violation.)

Until now, there has been limited enforcement of traffic violations by cyclists. This is because applying penalties under the Road Traffic Act to minor violations can result in a criminal record (criminal fine called BAKKIN), which is considered disproportionate. However, a penalty system similar to that for automobiles will be introduced for cyclists by 2026. This system will impose fines (traffic violation fine called HANSOKUKIN) without resulting in a criminal record. This makes it easier for police to enforce the law, leading to increased enforcement.

While bicycles are a convenient means of transportation, they are classified as light vehicles under the Road Traffic Act and require adherence to traffic rules, just like automobiles. Using earphones can endanger not only yourself but also surrounding pedestrians and vehicles. Please comply with traffic rules and strive for safe cycling.