Publication of Scheduled Closures of Financial Institutions in ‘Residential Evacuation Target Regions’ During Nankai Trough Earthquake Alerts

Japan’s recent announcement regarding the scheduled closures of financial institutions in designated ‘residential evacuation target regions’ during Nankai Trough earthquake alerts is crucial for foreign entrepreneurs. Understanding these measures can help businesses navigate potential disruptions and ensure operational continuity.

Background & Context

Japan, located in a seismically active region, prioritizes earthquake preparedness in public safety and business operations. The Financial Services Agency (FSA) of Japan (Kinyū-chō) has established protocols for financial institutions during earthquake alerts, especially in ‘residential evacuation target regions.’ These protocols aim to maintain financial service accessibility during emergencies. The Disaster Countermeasures Basic Act (Saigai Taisaku Kihon-hō) and the Financial Instruments and Exchange Act (Kin’yū Shōhin Torihiki-hō) outline financial institutions’ responsibilities in disasters. Recent updates emphasize service continuity and customer support during emergencies, with the latest guidance issued in July 2026.

How This Affects Your Business in Japan

Item	Cost (JPY)	Cost (USD approx)	Notes
Company Registration	¥150,000	$1,000	Standard registration fee
Notary Fee	¥50,000	$350	For document notarization
Visa Application	¥4,000	$30	Business Manager visa

1. Foreign Residents Already Operating a Business in Japan
If you are currently running a business in an area identified as a ‘residential evacuation target region,’ it is essential to stay informed about your financial institution’s operational status during earthquake alerts. Ensure that your banking services remain uninterrupted by establishing communication with your bank and understanding their emergency protocols. Failure to do so may result in disruptions to your business operations, particularly regarding access to funds and payment processing.

2. Foreign Nationals Planning to Establish a New Company
For those looking to start a business in Japan, it is crucial to consider the location of your operations in relation to earthquake-prone areas. Research the financial institutions in your chosen area and their disaster preparedness plans. This knowledge will help you make informed decisions about where to set up your business and how to secure financial services that can withstand potential disruptions.

3. Foreign Investors Who Are NOT Residents of Japan
Investors should be aware of the risks associated with investing in businesses located in earthquake-prone regions. Understanding the financial institutions’ emergency measures can help mitigate risks. It is advisable to conduct thorough due diligence on the companies you plan to invest in, focusing on their disaster preparedness and financial resilience. Inaction could lead to significant financial losses if a natural disaster occurs and the business is unable to operate effectively.

Step-by-Step: What You Need to Do

Step 1: Identify Your Financial Institution
Contact your bank to confirm whether it is located in a ‘residential evacuation target region.’ English support is typically available.
Office: Financial Institution (English Support: Yes)
Cost: Free (¥0)
Time: 1-2 days
Pitfall: Not confirming the location can lead to unpreparedness.

Step 2: Review Emergency Protocols
Request information about your bank’s emergency measures during earthquake alerts. Ensure you understand how these will affect your access to funds.
Office: Financial Institution (English Support: Yes)
Cost: Free (¥0)
Time: 1-2 days
Pitfall: Misunderstanding protocols can cause access issues.

Step 3: Develop a Contingency Plan
Create a business continuity plan that includes alternative banking solutions in case your primary bank is temporarily closed.
Office: Business Consultant (English Support: Limited)
Cost: ¥30,000 (~$200 USD)
Time: 1 week
Pitfall: Lack of a plan can lead to operational disruptions.

Step 4: Monitor Earthquake Alerts
Stay updated on seismic activity and alerts issued by the Japan Meteorological Agency (JMA) (Nihon Kishō-kyoku) to prepare for potential disruptions.
Office: JMA (English Support: Yes)
Cost: Free (¥0)
Time: Ongoing
Pitfall: Ignoring alerts can lead to unpreparedness.

Step 5: Communicate with Stakeholders
Inform your employees and clients about your contingency plans and how you will manage operations during an earthquake alert.
Office: Internal Communication (English Support: Yes)
Cost: Free (¥0)
Time: 1-2 days
Pitfall: Poor communication can cause confusion.

Key Contacts
www.jetro.go.jp/en/
www.moj.go.jp/isa/
houmukyoku.moj.go.jp
www.customs.go.jp/english/
www.nta.go.jp/english/
www.meti.go.jp/english/
www.fsa.go.jp/en/

Expert Analysis: Japan vs. Regional Competitors

Metric	Japan	Singapore	Hong Kong	South Korea
Incorporation Time	14 days	3 days	5 days	10 days
Minimum Capital Requirement	¥1	S$1	HK$1	₩1
Annual Filing Cost	¥60,000	S$300	HK$2,000	₩100,000
Corporate Tax Rate	30%	17%	16.5%	22%

What to Expect Next

Looking ahead, businesses should monitor any updates to the Disaster Countermeasures Basic Act and related regulations as Japan continues to enhance its disaster preparedness framework. Key timelines to watch for include the annual reviews conducted by the Financial Services Agency, which may introduce new guidelines or amendments. Additionally, any significant seismic events could prompt immediate regulatory responses, making it essential for foreign entrepreneurs to stay informed about changes that could impact their operations.

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Sources & References

This article is based on the following source and enhanced with professional analysis for foreign business owners.
Source: 「南海トラフ地震臨時情報（巨大地震警戒）」発表時における「住民事前避難対象地域」内の金融機関の休業予定店舗等について公表しました。

⚠️ This article is for informational purposes only and does not constitute legal advice. Please consult a qualified Japanese attorney (bengoshi) or judicial scrivener (shiho shoshi) for advice specific to your situation.