Japan Post Bank Mulls Overseas Remittance Cap

Economy

Tokyo, June 18 (Jiji Press)--Japan Post Bank <7182> is considering putting an upper limit on the amount of overseas remittances to prevent its service from being used for money laundering, informed sources said Tuesday.

The Japan Post Holdings Co. <6178> unit plans to put the cap of 5 million yen per overseas transfer starting this autumn, according to the informed sources. Japan Post Bank has some 120 million ordinary saving accounts, the largest among Japanese banks.

People can open an account at Japan Post Bank not only at its outlets but also at post offices nationwide, making it relatively easy for foreigners to set up an account compared with at other banks. Some have pointed to the risk of Japan Post Bank's overseas remittance service being abused.

This month, three major Japanese banks--Sumitomo Mitsui Banking Corp., Mizuho Bank and MUFG Bank--started to step up their confirmation processes such as on identification of individuals when they open new accounts and whether users have dealings with countries on which economic sanctions have been imposed, in a bid to avoid services from being used for money transfers to terrorists as well as money laundering.

Japan Post Bank has also been proceeding with preparations to implement similar measures.

[Copyright The Jiji Press, Ltd.]

Jiji Press