#Japan #KPMG #Chiyoda #Freelance Law #Compliance Service

KPMG Forensic & Risk Advisory Launches New Compliance Service

KPMG Forensic & Risk Advisory (KPMG FRA), located in Chiyoda City, Tokyo, has announced the launch of a new consulting service aimed at assisting companies in complying with the recently amended Subcontract Act and the new Freelance Law. This service is especially important in light of heightened regulatory scrutiny on fair trade practices, which can potentially lead to severe penalties or reputational damage for businesses failing to comply.

Background on the New Regulations

In recent years, there has been a series of regulatory changes to ensure fair transactions, including amendments to the Subcontract Act and the introduction of the Freight Vehicle Transportation Business Act alongside the Freelance Law. Companies that do not respond proactively to these changes face significant risks such as administrative sanctions or damage to their reputation. A focused approach by just the procurement or legal departments is often insufficient. Therefore, KPMG FRA emphasizes the necessity of a comprehensive, cross-departmental strategy to establish appropriate compliance frameworks across the entire organization.

Key Features of the Service

KPMG’s new service is designed to support the integrity and sustainability of client businesses through a range of structured phases:

1. Diagnosis

• - Outputs: A rapid review of group management policies, client relationship management, and communication channels.
• - Benefits: Visualization of risks and priorities, minimizing the workload for compliance efforts.

2. System Design

• - Outputs: Development of a master plan and mapping of relevant departments.
• - Benefits: Streamlined organization of requirements common across different regulations.

3. Implementation

• - Outputs: Revision of internal regulations, creation of client checklists, and establishment of auditing processes.
• - Benefits: Standardized procedures that are practical and feasible within operational contexts.

4. Awareness Activities

• - Outputs: Creation of training materials and support for Q&A channels.
• - Benefits: Enhanced understanding among both internal staff and external partners.

5. Institutionalization

• - Outputs: Design of monitoring systems and improvement cycles.
• - Benefits: Ongoing assurance of compliance effectiveness through a continuous PDCA (Plan-Do-Check-Act) cycle.

It is important to note that KPMG FRA offers flexibility, allowing for the selection of services that can be fully or partially provided based on client needs.

Service Availability and Pricing

• - Launch Date: The service will be available starting August 1, 2025.
• - Pricing: Quotes will be provided on a case-by-case basis and potential clients are encouraged to inquire for specifics.

Partner Comment

KPMG FRA’s Managing Director, Hayashi Minoru, commented, “The purpose of the amended laws is to enhance fairness in transactions and foster healthy growth for entire supply chains. Our goal at KPMG FRA is to leverage our expertise in forensic and risk consulting to build effective compliance frameworks that minimize burdens on our clients.”

About KPMG Forensic & Risk Advisory

KPMG FRA began operations on April 1, 2025, as a joint venture between KPMG Japan and Azusa Audit Corporation. The firm focuses on seamlessly supporting companies in their responses to fraud, offering preventive measures and detection strategies to help establish an integrity-driven business foundation in Japan.

For inquiries, contact KPMG Forensic & Risk Advisory at: [email protected]