Japan's Upper House of Parliament is to vote on revisions to the foreign exchange control law on Monday. The new legislation would allow Japan to act on its own to restrict the flow of money and goods to North Korea.

The bill was jointly sponsored by the ruling coalition and main opposition Democratic Party and passed by the Lower House of Parliament late last month.

The law would allow Tokyo to unilaterally slap sanctions on any country to maintain "peace and stability." But analysts say the legislation is aimed solely at putting pressure on North Korea over its nuclear and missile programs and its failure to explain what happened to Japanese nationals it abducted decades ago.

Under existing laws, Japan cannot impose sanctions on foreign countries unless they are part of an international effort, such as that comprised by a United Nations resolution.

North Korea had issued a warning against Japan's move to prepare punitive steps. The official Korean Central News Agency in Pyongyang said last month that the sanctions may lay a stumbling block in the way of a peaceful solution to its nuclear standoff with the international community.

The reports also warned of strong reaction to what it termed "Japanese reactionaries' blockade and sanctions."

But Prime Minister Junichiro Koizumi has said the move to enact the legislation does not meant punitive steps are imminent.