Japan launches economic security clearance system amid privacy woes

TOKYO, May 16 : Japan on Friday launched a “security clearance” system to allow critical government information to be classified on economic security grounds, as critics warn that background checks on individuals to allow them access may amount to an unwarranted invasion of privacy.

With the new law now in effect, the government expanded the scope of information deemed classified to include that linked to economic security, such as critical infrastructure and advanced semiconductors. Areas of defense, diplomacy, espionage and counterterrorism are already covered by a separate law to protect state secrets.

Government officials and employees at private companies subject to the security clearance will have to undergo vetting by the Cabinet Office, which will examine their jobs and criminal records, foreign travel, alcohol consumption habits and hospital visits for mental illness.

In a 35-page questionnaire, individuals will also be asked about their families, including nationalities, real estate ownership and bank accounts at foreign financial institutions among other matters.

In the first fiscal year, several thousand public and private-sector officials are expected to undergo the clearance process.

Under the new security clearance system, the government will promote information sharing with the United States and European countries, which already have similar measures in place. More private companies will also be eligible to participate in international projects involving sensitive information.

The law will punish those proven to have leaked such information with a maximum penalty of five years in prison or fines of up to 5 million yen ($34,000), or both.

Opposition lawmakers have voiced concerns about potential privacy violations during the vetting process.

The law stipulates that the background checks must be carried out with the individual’s consent, and that the results are not to be misused, including by companies whose employees undergo vetting.

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