Business

Japan Post Bank to cap overseas remittances to ¥5 million a day to tackle money laundering

Move aimed at reducing money laundering

JIJI

Japan Post Bank Co. and Japan Post Co. will limit the amount of funds that can be sent via their overseas bank transfer service to tackle money laundering.

Overseas remittances will be limited to ¥5 million per day. The move is aimed at preventing illegal transactions.

Currently, there is no ceiling on how much money customers can send through the service.

Moreover, the number of post offices offering the service will be reduced from the current 3,210 to 1,194, beginning in October, Japan Post Bank and Japan Post said Wednesday.

Another overseas remittance service, through which postal money orders can be sent abroad, will be continued only for the United States. Here, too, the cap will be lowered, from the current $7,000 (about ¥741,000) to $2,800.

Japan Post Bank will also end its foreign currency home delivery service at the end of September.

It will also place a cap of about ¥100,000 on the amount of foreign currency a customer can buy or sell at a time at Japan Post Bank outlets and some post offices.