Visa Renewal and Bank Account Restrictions

Recently, there have been increasing incidents involving the misuse of bank accounts belonging to foreign nationals who have overstayed their visas or otherwise become unreachable. When foreign residents in Japan cease using their bank accounts due to returning to their home countries or for other reasons, they are required to close their accounts at financial institutions. Unfortunately, many are unaware that transferring a bank account to another person, whether for compensation or free of charge, constitutes a criminal offense. Consequently, some abandoned accounts have been exploited for criminal activities such as special fraud schemes.

It is illegal for foreigners to sell or transfer their bank accounts (cash cards or passbooks) to others.

To prevent such criminal exploitation, Japanese banks may impose restrictions on account activities like withdrawals and transfers after the visa expiration date. These restrictions vary by institution and may include limitations such as restricting withdrawals exclusively to teller transactions, limiting deposits and withdrawals (including salary deposits), or freezing accounts two months after visa expiry.

How to Avoid Bank Account Restrictions

To avoid restrictions on bank accounts, foreign nationals must inform their banks before their current visa expiration date, providing proof that their visa status has either been renewed or is under renewal processing. Documents typically required by banks include a copy of both sides of the new residence card post-renewal, a copy of the residence card and application receipt if renewal or change of visa status is pending, or an email confirmation issued by immigration lawyers or administrative scriveners upon online application submissions.

Advisory from Police, Immigration, and Financial Authorities Regarding Foreign Residents’ Bank Accounts

The National Police Agency, Immigration Services Agency, and Financial Services Agency of Japan are actively informing foreign residents that transferring bank accounts to others constitutes a crime. Additionally, it is crucial to promptly notify financial institutions of any changes in address or visa status.

Examples of Criminal Activities Include:

• Illegal Underground Banking: Conducting banking or fund-transfer services without proper licenses or registrations.
• Illegal Lending Activities: Engaging in lending operations without official registration.
• Money Laundering: Concealing the origin or true ownership of proceeds derived from criminal activities to evade detection or prosecution by law enforcement.
• Allowing Others to Use Your Account: Selling, transferring, or lending passbooks or cash cards.

About the Author

Masakazu Murai previously served at Mitsubishi UFJ Morgan Stanley Securities, a joint venture between Mitsubishi UFJ Financial Group and Morgan Stanley, specializing in corporate finance and mergers & acquisitions. During his tenure, he also served as a central committee executive in the employees’ union, advocating for workplace diversity, foreign employee integration, and labor condition improvements. He currently specializes in immigration procedures consulting and financial advisory services for foreign nationals.

Administrative Scrivener / Executive Officer, Minato Branch of Tokyo Administrative Scrivener Association
Certified Financial Planner (CFP)
Chartered Member, Securities Analysts Association of Japan

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