Japanese money transfer industry (FTS) license

Regulatory entities should be established according to types of capital movement industries, Management and operational arrangements. Overseas entities, Personnel and office requirements should correspond to the specific application path, Do not summarize all applicants with an unchecked set of resident MLROs and representatives.

Divided into three categories according to the "Fund Settlement Law". The first category is large transfers (a single transaction exceeding 1 million yen), restricted stay); The second category is regular transfers (within a single transaction of 1 million yen), Cross-border e-commerce is the most common); The third category is small-amount transfers (limited to 50,000 yen).

Yes. According to the 2025 Amendment to the Fund Settlement Law, Cross-border collection agency business is officially clarified as a fund transfer transaction, You must obtain a corresponding type of fund transfer industry license in accordance with the law before you can operate legally..

Supervising financial foundations and safeguarding client funds are separate matters. Should press first, Second or third type of capital movement business and actual transaction arrangements, verification of net assets and preservation methods, All approved mechanisms cannot be summarized as 100% cash pledge.

Can refer toSupervision and application information of the Japanese fund transfer FTS license authority, Check corresponding systems and processing information.

FSA will conduct rigorous due diligence (UBO review). When a natural person of Chinese nationality is the actual controller, Proof of legal source of funds and bank credit record in Japan must be submitted. It is recommended to introduce Japanese compliance executives to optimize the governance structure.

Institutions are strictly prohibited from using client funds for the company’s own operations.. Must sign a performance guarantee contract with a credit institution or trust company in Japan, Deliver equal or even excess amounts of client funds to the trust for physical isolation and safekeeping.

There is a significant difference. The first category (large amount) involves high-risk large-amount settlements, The Financial Services Agency’s IT infrastructure, Disaster Recovery Plan (BCP), The audit standards of anti-tampering mechanisms and anti-money laundering systems are much higher than the second, Category three.

According to the new regulations in 2024, Money transfer operators’ systems must support automated transaction anomaly interception, It is also mandatory that suspicious transactions must be 72 Complete the report to the regulatory agency within hours, Unregulated financial transactions with non-whitelisted countries are prohibited.

A business plan including a three-year financial model must be provided, Detailed fund preservation agreement certificate, System Architecture Security Report, AML/CFT Internal Control Procedures, and background penetration review documents for all key executives.

After several months of preliminary review relying on the FMEO English channel or the local financial bureau,, From formal submission to registration issuance, it usually takes 3 to 6 months. Combined with entity establishment and reserve account opening, The overall end-to-end practical cycle is estimated to be 8 to 12 months.

Organizations are required to submit business and financial reports to the competent finance bureau on a regular basis in accordance with the law., Accept external independent audits on the implementation of fund preservation, And perform system security self-inspection according to the latest API standards of Zengin.

Not covering all banking services. Fund movement category should be, Transaction amount and fund preservation arrangements and operations, Remittance balances cannot be advertised as bank deposits that can be taken indefinitely.

Submitting an application or obtaining a principled opinion does not mean that you are officially allowed to operate.. Final authorization should be confirmed first, Licensing conditions and prerequisites for starting business; Technical testing should be distinguished from real client funds and regulated transactions.

Cannot be regarded as the same approval. Regulatory authority assessment business authorization; Banks independently review customers, Source of funds and purpose of account. Obtaining a license or in-principle approval does not guarantee account opening, Clearing access and ongoing account services.

New products first, Customer Category, A case-by-case comparison of capital flows and operating areas with existing registrations or authorizations. If it exceeds the scope or affects the applicable conditions, Corresponding changes should be completed, It will be launched after notification or separate application..

Outsourcing does not mean transferring the responsibilities of the licensed entity. It is recommended to clarify the scope of services, data access, audit, accident report, Re-sourcing and exit arrangements, and retain sufficient internal personnel to supervise suppliers.

Compare legal names, Registration or license number, Authorized business, Licensing conditions and actual website. Group brand, The identity of affiliated companies and agents cannot replace the authorization of the contracting entity., Should be cross-checked with official records and licensing documents.

Both may change the control relationship. Direct and indirect shareholdings should be identified before trading, Significant impact and changes in ultimate controller, Check approval or notification procedures, and write regulatory conditions into the delivery arrangements.

First check whether the license conditions are still met, Arrange temporary supervision, Business restrictions and handovers, and complete applicable personnel notifications or new hire approvals. Nominal substitutes cannot solve gaps in actual performance of duties.

It is recommended to record complaints, Products and people involved, Processing time limit, Evidence and conclusion, and inform customers of applicable upgrade channels.. Processes should be rectified when systemic problems are discovered, Instead of just closing a single ticket.