The House of Councilors on Wednesday passed amendments to the Political Funds Control Law that put an annual 50 million yen cap on donations made between political organizations, excluding political parties and their campaign fundraising units.
The ruling coalition of the Liberal Democratic Party and New Komeito came up with the idea after it was discovered last year that a donation of 100 million yen to an LDP faction from a dental lobby group had been concealed.
But critics have questioned whether the cap, which will come into effect Jan. 1, will be effective. They have said politicians can set up as many political organizations as they want to neutralize it.
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