A list of “International Money Transfer Service Providers” in Japan

What is Remittance Service Providers?

　Remittance service providers refer to banks and companies that handle overseas remittance as a business. In Japan, the Banking Act and associated rules prohibit individuals or entities other than banks and authorized organizations from engaging in foreign exchange dealings, including remittance services.

　In Japan, there are two types of business that can conduct international money transfer. One is “Banks,” which are allowed to engage in foreign exchange transactions under the Banking Act and related regulations, and the other is “Funds Transfer Service Providers,” which are authorized to conduct foreign exchange transactions under the Funds Settlement Act.

　It is worth noting that banks and funds transfer service providers have different authorities granted to them by the government in terms of the amount they can handle, such as limits on money transfers. Let’s take a closer look at the summary of transfer limits and other details provided below.

Remittance limit amount per Overseas Remittance License

1. Banks
   → No maximum transfer amount (although each bank might impose its own limitations)
2. Funds Transfer Service Providers
   → Transfer restrictions differ based on the following three license categories:
   ■Type 1: Authorized to process transfers over 1 million yen, but pre-approval from the Financial Services Agency is necessary
   ■Type 2: Maximum transfer amount of 1 million yen for each transaction
   ■Type 3: Maximum transfer amount of 50,000 yen for each transaction
   
   *Reference: https://www.s-kessai.jp/info/law.html

Bank

　Although no legal restrictions exist on the amounts banks can handle in foreign exchange transactions, banks may set different maximum limits, depending on a sender being retail or wholesale and whether the transaction request is made in-person or online.

　For instance, consider personal/retail transfers with MUFG, the maximum amount for a single overseas remittance through MUFG’s internet banking is under 1 million yen, whereas the cap for a single international remittance made at an MUFG branch’s counter stands at 5 million yen.

　Given the commonality of scenarios like the one described, it is advisable to verify the maximum transfer amount on the bank’s website or other relevant sources when using a bank for international money transfers.

Funds Transfer Service Providers

　There are three types of transfer limits for funds transfer service providers, with different handling caps set according to each license type.

　To handle transfers exceeding 1 million yen, a Type 1 license is required. However, as of March 31, 2023, only one funds transfer service provider, Kyodai Remittance, has secured a Type 1 license. The main reason for its limited adoption is the lack of convenience, as each transfer using a Type 1 license requires prior approval from the Financial Services Agency. If legal changes are implemented to enhance convenience, more funds transfer service providers may pursue Type 1 licenses in the future.

　Furthermore, as of September 24, 2022, no businesses have secured a Type 3 license. The reason being that there are no advantages, such as increased transfer limits, for funds transfer service providers who already possess a Type 2 license and then acquire a Type 3 license.

List of Remittance Business Operators

　In general, banks handling international money transfer services are registered with SWIFT (a global system and network utilized by banks for overseas transfers). If we define banks registered with this system as domestic banks capable of conducting “international money transfers,” there are about 180 banks in Japan that can perform such transfers (as of September 2022).

　On the other hand, there are a total of 84 funds transfer service providers registered with the national finance bureaus (as of March 31, 2023). Out of these, 38 companies offer remittance services from Japan to overseas (outward remittances), and 14 companies provide remittance services from overseas to Japan (inward remittances).

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