Responding to regulatory violations due to failure to report overseas direct investment.

Law firm Veat received a request from a client with a subsidiary overseas and acted as an agent for the entire violation reporting regarding the overseas direct investment report that was omitted during the past paid-in capital increase process.

The client belatedly realized that due to an employee's mistake, they had failed to fulfill the overseas direct investment pre-report for some of the multiple paid-in capital increases, and the situation was raising concerns about sanctions under the Foreign Exchange Transactions Act. According to the Foreign Exchange Transactions Act, when transferring funds to an overseas subsidiary in the form of a capital increase, a pre-report is, in principle, required, and failure to do so can result in fines, penalties, and even restrictions on foreign currency transfers or acquisition of overseas stocks.

Accordingly, Law firm Veat meticulously sorted out the company’s past transaction history, analyzed the circumstances and legal nature of the previously unreported transactions, and submitted data that could substantiate the details, leading to a swift and efficient approval of the violation report.

As a result, the client was able to resolve the unreported transactions and return to a state of being able to trade normally with the overseas subsidiary again. Law firm Veat supports one-stop services from reviewing the overview of complex foreign exchange transactions through the Overseas Investment Reporting Center to providing and submitting relevant data.

Those who are interested in more details regarding this case study are welcome to refer to the official blog.
▶Go to Law firm Veat Overseas Investment Reporting Center (FX CENTER)

Thank you.