6 ways for foreigners in Japan to make overseas remittance
Among foreigners living in Japan, there are many chances for them to send money overseas, such as to their families or returning scholarships.
However, when you exchange funds with foreign countries, there is always a fee. In addition, remittance at the window of a bank or other financial institution requires a large fee for foreign currency exchange and takes time for processing.
In this article, we will introduce 6 overseas remittance services & applications that foreigners use.
Can foreigners remit overseas in Japan?
Under Japanese law, both Japanese and foreigners can freely transfer money to any country. However, according to the foreign exchange and foreign trade laws, depending on the remittance destination country / region and the purpose of remittance, it may be necessary to give permission to the Minister of Finance or to report to the Managing Minister.
Services for foreigners to make overseas remittance
We will introduce 4 ways and their merits&demerits for foreigners to make overseas remittance.
Transfer Wise is a recommended overseas remittance service with a low fee.
When sending money from Japan, most of the time you need to exchange it to foreign currency first and transfer it. You don’t need to change money when using Transfer Wise, but you can drop it in your Transfer Wise account of each country.
・ The overseas remittance fee is the lowest (up to 1/8 of the bank)
・ Can register online
・ Supports most of the major countries
・ Requires a local account
・ Some countries have restrictions on remittance to Japan
Pay Forex (Pay Forex) is a service that allows you to send money overseas in more than 200 countries. The fee is more expensive than Transfer Wise, but cheaper than other banks, and you can make large transfers free of charge. It is also recommended for people who don't have time, as it can be used online from registration to remittance.
・ Remittance fee is low
・Everything can be completed online
・ It is difficult to use for those who are not used to online trading
Western Union・Seven bank
Western Union is a leading international remittance service based in the United States.
With a high penetration rate, there are over 500,000 dealers in more than 200 countries worldwide. There are four types of remittance methods: remittance to bank account, remittance from convenience store, remittance from dealer, and remittance from ATM. As we have a partnership with Seven Bank, it is also convenient to transfer money from there.
・Urgent overseas remittance can be dealt with
・The fee is cheap
・In addition to the remittance fee, it also costs the exchange fee
Headquartered in Tokyo, enRemit has partnered with Moneygram, a major US remittance service company. There are approximately 350,000 bases in 200 countries and regions around the world, and you can receive cash without having a bank account.
・ Remittance application from the Internet, transfer possible with Yucho Bank card
・ Remittance can be received in as short as 10 minutes
・Application procedure takes time
SBI Remit can be sent to about 250,000 locations in more than 220 countries and regions, and it can be used according to your remittance needs. There are many countries where remittances can be made and transaction currencies, and even if you do not have a bank account, you can receive remittances overseas.
・ You can send money in as short as 10 minutes to several days.
・ You can send money even if you do not have a bank account.
・ Receiving is valid only for 90 days from the remittance request, and if it exceeds 45 days, exchange rates different from those at the time of remittance request will be applied.
・ There is a limited number of countries that can send money to bank accounts (as of 2019: Philippines, China, Vietnam, Indonesia, Thailand, Myanmar, Brazil, Peru, Nepal, Sri Lanka)
Can Japan banks such as Japan Post also make overseas remittance?
Overseas remittances are also possible from Japan banks such as Japan Post Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Bank, Mizuho Bank, Bank One hundred fifty, Rakuten Bank, Shinsei Bank, Sony Bank, Resona Bank and others.
For example, with Japan Post Bank, you can send money from Japan Post Direct (PC / Smartphone) or through the window.
Convenient overseas remittance for foreigners! Android / iOS application
Seven bank money transfer
"SEVEN BANK MONEY TRANSFER" is an app of Seven Bank's overseas remittance service. There are many useful features and information for overseas remittances, such as quick confirmation of remittance rates and easy setup of payee.
・ The operator at the telephone window supports 9 languages (Japanese, English, Tagalog, Chinese, Portuguese, Spanish, Thai, Vietnamese, Indonesian)
・ If Seven Bank is made in advance, remittance registration can be easily done with the application.
・The country of overseas remittance is only limited to the Philippines
"World Family Overseas Remittance" is an application that can make overseas remittance fast, cheaply, surely, easily. The fee is from ¥ 500 at one time, you can remit overseas with the same rate as domestic remittance. In addition, it takes less time to transfer money to China and Nepal in as little as 5 minutes, and to other Asian countries in as little as 15 minutes.
・ We can remit overseas for a cheap fee(from 500 yen) after we become membership
・ It is safe because it is registered with the Ministry of Finance Kanto Finance Bureau.
・Only limited to Asian countries(India, Indonesia, Cambodia, Sri Lanka, Thailand, China, Nepal, Pakistan, Bangladesh, Philippines, Vietnam, Malaysia, Singapore, Korea)
The points you should pay attention to when making money transfers
Remittances in Japan are strictly regulated
Since overseas remittances from Japan have the potential to lead to criminal acts such as terrorism, identity verification at the time of overseas remittance and confirmation of the origin of funds are more severe than in ordinary domestic remittances. In addition, if the remittance destination country is a sanctioned country, it may not be possible to remit it.
What is OFAC?
OFAC is the United States Department of Finance Foreign Asset Management Office. "OFAC Regulations" refers to measures taken by the OFAC, such as trade bans and property freezes, which are taken for designated countries / regions, individuals and organizations for security and foreign policy purposes.
Remittance to sanctioned countries NG?
Under the OFAC, we may not be able to remit overseas to a sanctioned country. The target countries and the degree of regulation are as follows.
・ Comprehensive sanctioned countries (Myanmar, Cuba, Iran, Sudan, Syria) ... General transactions
Non-inclusive sanctioned countries (Western Balkans, Belarus, Cote d'Ivoire, Democratic Republic of the Congo, Iraq, Liberia, Lebanon, Libya, North Korea, Somalia, Zimbabwe) ... Individuals and organizations individually designated by the US government Trading with
"Questions about overseas remittances" will arrive
When repatriating more than 1 million yen from Japan, a domestic financial institution is obliged to report that fact to the tax office.
If the remittance amount is large, you may be asked about the details and use of remittance funds overseas, or the facts and omissions of gifts, etc. from the tax office in half a year to one year, which is called "inquiries about overseas remittances". "Questions for overseas remittances" will be delivered even if it is not fraud, so please answer properly when received.
In some occasions, there’s a hearing from the tax office
・ Income of business with overseas transactions
・ Domestic and foreign source income
・ Gift from relatives living abroad
In some cases, the taxation office will investigate whether these are the cases above or not.
Some may be subject to gift tax
In Japan, if you receive money from a person living in Japan, the person who receives it will be subject to a gift tax regardless of the place of residence or nationality. Remittances between third parties are less likely to be identified as gifts, as there are many cases of transactions and lending and less pure giving. However, if a remittance for the purpose of financial assistance is carried out between a family, such as a parent and child or a couple, it is recognized as a gift.