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The Cabinet approves a bill to build a "security clearance system:" Enabling a wider range of collaboration in cutting-edge fields and penalizing leakage of critical security information

2024.04.11

The Kishida Cabinet approved a bill, on February 27th, focused on the protection and use of critical economic security information (i.e., the security clearance (SC) bill). Classified information on vulnerabilities of the supply chain and infrastructure, which is possessed by the government, is defined as critical economic security information. Eligibility to handle it is granted to those — including personnel of private sectors — who have completed a security background review. One aim of the bill is to expand business opportunities for private companies and joint research in advanced technological fields with Europe, the U.S., and other countries.

Regarding sensitive information held by the government, the Act on the Protection of Specially Designated Secrets designates types of information that requires secrecy (top secret and secret) in the four areas of defense, diplomacy, espionage, and terrorism as special secrets. However, there are types of information on cyber-attacks and supply chain vulnerabilities that do not fall under these areas or are not at the secret level or above (that are not confidential). Of these types of information, there are types whose leakage could seriously endanger Japan's national security. Other G7 countries have established systems to grant eligibility for access to this information. Certain international conventions and government procurements—involving, for example, cybersecurity—require eligibility qualifications as a prerequisite for entry. Hence, Japanese companies were shut out in some cases.

The bill is designed to establish a mechanism using which the government can designate critical economic security information as classified and provide it to persons with SC eligibility. Eligibility shall be valid for a maximum of five years and can be extended. In principle, it shall expire after 30 years. Critical security information shall be provided to an SC eligible individual of a company in the private sector after each ministry in possession of such information has signed the confidentiality agreement with that company.

The bill is designed to establish a mechanism through which the government can designate critical economic security information as classified and provide it to those with SC eligibility. Eligibility shall be valid for a maximum of five years and can be extended. In principle, expiring after 30 years. Critical security information shall be provided to an SC eligible individual of a company in the private sector after each relevant ministry has signed the confidentiality agreement with that company.

SC eligibility shall be granted after the security background review has been completed, with consent from the individual. The following information shall be reviewed: family members and roommates, criminal record, drug abuse, drinking habits, and debt and other financial conditions, among others. The results of the review shall be communicated to the organization to which the individual belongs — but if denied, only the individual shall be notified of the reasons. The organization is prohibited from using the review results for employee appraisals and other purposes. Furthermore, eligibility shall be valid for up to 10 years, even if the individual moves from one organization to another.

Leaking critical security information shall carry a penalty of up to five years in prison or a fine of up to 5 million JPY, or both. Penalties shall also be imposed on the person who instigated the leak.

It has not been determined what information will be designated as critical economic security information. Any information held by the government should be logically classified. However, when a certain kind of test or research entrusted by the government is conducted, the test or research results can be critical information. If the results are anticipated to be critical, they shall be designated as critical economic security information. In any case, the establishment of a security clearance system will enable a wider range of collaborative research in cutting-edge fields with allied and like-minded countries, including G7 countries.

This article has been translated by JST with permission from The Science News Ltd. (https://sci-news.co.jp/). Unauthorized reproduction of the article and photographs is prohibited.

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