Recently , an alarming news report indicated that “Japanese banks are suspending withdrawals from bank accounts of foreign nationals whose period of stay has expired”. “Period of stay” refers to the length of time on your visa.
This news may have made some of you feel anxious when you saw this news. This is only natural since having a bank account is essential for living in Japan. You might think that this cannot happen to you, only to others. Think again and read on!
In this article, we explain in an easy-to-understand way why this could happen, how you can prevent your account from being frozen, and what you should never do.
Why are bank accounts frozen?
The reason behind the suspension of withdrawals from bank accounts of foreigner bank holders whose period of stay has expired is that there has been an increase in cases involving banks accounts held in the name of a foreigner nationals. These accounts are being illegally bought and sold and misused for crimes such as fraud. According to a report by the National Police Agency, such unauthorized use is increasing year by year, and the Financial Services Agency and the Immigration Services Agency are also strengthening their countermeasures.
More concretely, major banks such as the Bank of Tokyo-Mitsubishi UFJ and Mizuho Bank have implemented temporary restrictions on transactions and suspension of use for those whose period of stay has expired. It is likely that more local banks will follow this example. This is because if the account is still being used even after the expiration of the period of stay has expired, it is considered to be a risk of identity theft.
We have also heard from clients that they have been contacted by the bank and asked to notify them when they renew their period of stay.
In the future, we expect to see this trend to spread to other banks.
What happens if my account is frozen?
If your bank account is frozen, it will cause a great deal of inconvenience and disruption in your daily life.
Here are a few examples of how your life can be disrupted by a sudden freezing of your bank account:
- You won't be able to transfer your salary or withdraw it
- You won't be able to have your rent or utility bills automatically deducted
- You won't be able to withdraw the money you need for daily shopping
What to check and do now
To avoid this situation, check the following points and act on them as soon as possible.
１．Check the expiration date on your residence card. First, check the expiration date on the front of your residence card.
２． Start the procedure for renewing your status of residence as soon as possible. We strongly recommend that you start the procedure for renewing your period of stay three months before it expires. The renewal process can take longer than you expect. If you apply early, you can avoid the complicated situations described below and wait for the results with peace of mind.
３．A few things to keep in mind during the renewal process: What if the deadline has expired? Even if you have started the renewal procedure but your residence card expires during the screening process, there is no need to worry. Once your application has been accepted, you will be legally granted an extension of your period of stay during a “special period” until the screening results of your renewal are issued (or until two months have passed since the expiration date of your period of stay).
However, you need to be careful. During the “special period”, the expiration date on the front of your residence card will still show your period of stay has expired. Therefore, depending on the bank, there is a possibility that your account may be temporarily restricted during this period.
As a countermeasure, if you are applying for renewal and your period of stay during the renewal period, we recommend that you let the bank know in advance that you are applying for a renewal of your period of stay, and present documents such as the application receipt issued by the immigration bureau showing that you are in the process of applying for renewal. Depending on the bank's decision, this may allow you to avoid account restrictions.
If you are granted permission as a result of the screening, you will need to immediately update your information at the bank as soon as you receive your new residence card.
Of course, to avoid this kind of worry and hassle, the most reliable and safe method is to do the renewal procedures as soon as possible.
４． Once you have received your new residence card, be sure to notify your bank. Once you have successfully renewed your status of residence and received your new residence card, be sure to promptly notify your bank and update your registration information. If you forget to do this, there is a possibility that your bank account will be restricted even if your period of stay is renewed.
Never illegally sell or transfer your bank accounts
There is one final point to remember. It is strictly prohibited by law to sell or transfer your bankbook or cash card to another person.
Even if you sell or transfer your bankbook or cash to another person without a criminal intent, for example thinking “it'll make a bit of money” or “a friend asked me to”, these actions nevertheless amount to a criminal act (such as fraud or a violation of the Act on Prevention of Transfer of Criminal Proceeds).
Furthermore, once an account is compromised, the information will be shared amont financial institutions. In the future it will be almost impossible to open a new bank account in Japan, which will have very serious consequences.
Never sell or transfer your bank account illegally。
Summary
In this article, we have explained the risks and consequences of allowing your residence card to expire and of your bank account being frozen.
- Always be aware of the expiration date on your residence card and keep it in a safe place
- Make sure you renew your residence status well in advance
- Provide your bank with the necessary information promptly during and after the renewal process (especially after the renewal process, it is essential to notify your bank!)
- Do not use your bank account illegally or give it to someone else
Even if it feels like a hassle, try to take action as early as possible and follow the proper procedures to prevent problems from arising.
Please note that we are not a 'Bengoshi' law firm and are not authorized to handle criminal cases. If you are involved in a criminal case related to account trading, please consult a 'Bengoshi' lawyer.