News Japanese banks halt withdrawals from expired foreign resident accounts

[thomas]

Some banks in Japan have started restricting withdrawals from accounts held by foreign nationals whose residency status has expired amid a growing number of fraud cases involving the misuse of such accounts.

In December, the NPA urged all financial institutions to adopt the measure after uncovering instances where accounts belonging to former foreign residents were illegally sold and used in "special fraud" schemes—cases where scammers pose as relatives or officials to deceive victims. It was confirmed that MUFG Bank and Mizuho Bank, two of Japan's three major banks, have already implemented the policy. Other banks are expected to follow suit as they update their systems.

Although financial institutions require foreign nationals living in Japan to notify them of residency changes or extensions, it is not a widely understood condition within foreign communities. As a result, legal residents who fail to report updates may face account restrictions under the new measure. After holding talks with the FSA and the Immigration Services Agency, police said that use of accounts after a foreign resident's stay has expired is, barring exceptional circumstances, likely to constitute impersonation.

Japan banks block withdrawals from expired foreign resident accounts

Some Japanese banks have begun blocking withdrawals from accounts held by foreigners whose period of stay has expired, the Financial Services Agency says, amid a rise in the exploitation of such accounts by fraudsters.

english.kyodonews.net

 

[johnnyG]

I would not have thought of this as news? I read pretty regularly on reddit about foreigners worried and/or having actual problems after the date of their gaijin card expiration, or if renewal is still being processed.

It's also a common issue with people who leave--they can't use their accounts (can't leave them open) to pay taxes or other bills that are issued after they leave, needing to appoint a tax representative or give someone power of attorney.

 

[Majestic]

Yes - this is a loophole that is closing more tightly. Japanese banks really don't want non-residents holding money in their banks, presumably due to various regulations imposed by the US, which require Japanese banks to disclose information on US citizens who hold accounts at these Japanese banks. Much easier for the banks to close the accounts and do away with the administrative burden. (I think there is also a tax issue in Japan, but that is minor compared to the US regulatory issues).
Anyway, as I've mentioned before, I held on to my Japanese account for exactly the reasons JohnnyG mentioned above (paying tax and other bills in Japan), but I think it would be much more difficult to do this today. And riskier.

My Japanese bank just recently mailed me a questionnaire here in the States that asks me what I am using the account for. I am supposed to fill out the questionnaire and send it back. I haven't done it yet.

 

[mdchachi]

I had my bank account for a good 10+ years after I moved back to the U.S. I was using my in-laws address. The main reason I closed it is because they started charging a monthly fee that was eating up my funds.

 

[salyavin]

One concern I heard on some forum is sometimes the processing stamp does not work while they are waiting for renewal . If you are waiting on your residence card to be renewed it could limit your bank account access even if you are a resident. I suppose people just have to start the renewal process earlier in that case.

I do understand the burden for US regulations for US citizens and the concern with accounts being sold for fraud (which I was not aware of).