Police have arrested five Filipinos on suspicion of running an underground bank and illegally remitting money to Manila in violation of Japan's Banking Law, police said.
Among the five is Alvin Salazar Palma, a 25-year-old resident of Nagoya.
Police said that from February through November, Palma received about 700,000 yen, including commissions, from six customers in Shizuoka Prefecture. Of the total, about 650,000 yen was sent to Manila.
Investigators suspect the group has illegally channeled several tens of billions of yen to the Philippines since around 1991. Police have so far confirmed that more than 4 billion yen was sent.
The money was collected from several thousand Japanese and Filipino nationals living across the country.
Customers allegedly transferred their funds into Palma's bank account in Nagoya and informed associates in the Philippines of recipients' addresses, names and the amounts to be sent. All remittances were distributed in yen.
The five received commissions of 1,500 yen for remittances under 30,000 yen and 5 percent commissions if the transfers exceeded 30,000 yen, according to investigations.