Some Japanese banks have begun blocking withdrawals from accounts held by foreigners whose period of stay has expired, the Financial Services Agency said Tuesday, amid a rise in the exploitation of such accounts by fraudsters.
The National Police Agency in December called on all financial institutions to introduce the measure after seeing some foreign residents’ accounts being unlawfully sold and used in so-called “special fraud” cases, in which criminals impersonate relatives and officials to swindle victims.
While the FSA did not specify which banks had started the measure, Kyodo News has separately confirmed it has begun at MUFG Bank and Mizuho Bank, two of the country’s three megabanks. More are expected to implement it as they upgrade their systems.
File photo taken May 11, 2018, in Tokyo shows people walking past signs of major Japanese banks — (from L) MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking. (Kyodo)
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.
The notice also called for withdrawals and transfers to be blocked until valid residency can be confirmed. Bank transfers for some bodies, such as public utilities, are not subject to the controls.
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