Important to Know! A List of “Overseas Money Transfer Operators”

• This article is for reference only as it is merely a translated version of the Japanese article below.
  おさえておこう！「海外送金事業者」一覧 (Japanese version)

What is an Overseas Money Transfer Operator?

An overseas money transfer operator refers to a bank or company that handles overseas remittances as a business. In Japan, it is prohibited for entities other than banks and certain financial institutions to engage in foreign exchange transactions (commonly known as remittance operations) under the Banking Act and other related laws. Only operators who have obtained a license or approval from the government are permitted to conduct overseas money transfers.

There are two types of entities in Japan that can perform overseas money transfers. One is a “bank,” which is authorized to conduct foreign exchange transactions under the Banking Act, and the other is a “funds transfer service provider,” which is authorized to handle foreign exchange transactions under the Payment Services Act.

It is important to note that banks and funds transfer service providers have different levels of authority granted by the government, particularly concerning the amounts they can handle. Below is a summary of the transfer limits for each type of license.

Transfer Limits for Each Type of Overseas Money Transfer License

1. Banks
   → No transfer limit (However, individual banks may set their own limits)
2. Funds Transfer Service Providers
   → Transfer limits vary depending on the following three types of licenses:
   ■ Type 1: Capable of handling transfers exceeding 1 million JPY, but prior approval from the Financial Services Agency is required.
   ■ Type 2: Transfer limit is 1 million JPY per transaction.
   ■ Type 3: Transfer limit is 50,000 JPY per transaction.
   
   Reference: https://www.s-kessai.jp/info/law.html

Banks

In terms of foreign exchange transactions, there are no legal limits on the amount handled by banks. However, banks may set different upper limits depending on the sender (individual or corporate) and the method of request (in-person or online).

For example, regarding individual remittances through MUFG, the overseas remittance limit per transaction via MUFG’s internet banking is less than 1 million JPY, while the limit per transaction at an MUFG branch is 5 million JPY.

Such cases are common, so it is recommended to check the maximum limits on each bank’s website when considering using a bank for overseas remittances.

Funds Transfer Service Providers

On the other hand, there are three types of transfer limits for funds transfer service providers. The transaction limits differ depending on the type of license held.

To handle transfers exceeding 1 million JPY, it is necessary to obtain a Type 1 license. However, as of September 24, 2022, no funds transfer service providers have obtained a Type 1 license. The primary reason for this is that to conduct transfers using a Type 1 license, prior approval from the Financial Services Agency is required for each transfer, which is inconvenient. If legal revisions are made to improve convenience, it is possible that funds transfer service providers might obtain Type 1 licenses in the future.

Additionally, as of September 24, 2022, no providers have obtained a Type 3 license. This is because there is no advantage, such as an increase in transfer limits, for funds transfer service providers that have already obtained a Type 2 license to acquire a Type 3 license.

List of Overseas Money Transfer Operators

Banks that primarily handle overseas remittance services are generally registered with SWIFT (the global banking network and system used for international money transfers). (Please refer to this article for more information about SWIFT.)

If we define banks registered with this system as those capable of conducting “overseas remittances,” there are approximately 180 banks in Japan that can perform international money transfers as of September 2022.

On the other hand, there are a total of 85 funds transfer service providers registered with regional finance bureaus nationwide as of August 31, 2022. Of these, 38 companies offer outbound remittance services from Japan (outward remittances), and 14 companies offer inbound remittance services to Japan (inward remittances).

“ー” = No website or similar information found, making the services provided unclear.

Find the Best International Money Transfer Service with the “Overseas Remittance Simulator”!

The best international money transfer service depends on your specific transfer conditions at any given time. Moreover, since exchange rates fluctuate in real-time, the most advantageous international transfer provider can change constantly. It is nearly impossible for an individual to compare the dozens of available international money transfer providers simultaneously to identify the most cost-effective one.

For those who want to find the most advantageous international money transfer service, the “Money Saver Overseas Remittance Simulator” is highly recommended! This simulator allows real-time comparison of approximately 30 companies’ exchange rates, fees, and transfer times. Best of all, it’s free to use. Be sure to take advantage of the “Money Saver Overseas Remittance Simulator” to find the most cost-effective international money transfer service for your needs. For more information on how to use the Overseas Remittance Simulator, please refer to this article.