Kirk here, trying to get back to the issue of Higo Bank demanding that many foreign residents appear at one of their banks with documents in hand to identify themselves.
A meeting that Mr. Nakashima of Kumustaka and I had with a bank representative helped me understand their position a bit better, though there are still many important questions left unanswered.
In regard to the question of why they would be asking people who have been here a long time (especially those with permanent residency) to appear, it seems that before 2018 they had not been collecting the information they are now required to collect. So, that would seem to explain – to some extent, at least – why old-timers would be hauled in, but there are many issues that cannot be clarified so easily. I’ve done very little at this point but Mr. Nakashima is continuing to work on these questions, going as far as to contact the relevant government authorities to get their official explanations regarding various points of contention.
In the meantime, if you do not feel you can comply with the bank’s demands please contact them, either in writing or by phone, to request an alternative method of giving them the information they need. The Higo Bank representative indicated a willingness to be flexible in response to requests for special consideration.
One thing I learned as a result of our discussion is that Japan has been under pressure from and international organization called the Financial Action Task Force (FATF) to reduce the risk of money laundering (see https://www.asahi.com/ajw/articles/14430373). Similar demands for reform have been made on many countries, including the United States. But, we suspect that Japan may be somewhat unique (?) in targeting foreign residents in order to show that it is working to reduce the risk of money laundering. The text in the image I’ve added is from an FAQ put out by the government and clearly indicates that banks like Higo should verify the visa status of customers (CDD = Customer Due Diligence). But, FATF documents I have looked at thus far don’t seem to say anything about the need to crack down on foreigners. Rather, this seems to be coming from the Japanese government. So, here’s a question I hope you can help me answer: Have any of you heard anything about foreign residents in your home countries or other countries being subjected to similar sudden demands to appear at a bank, or to submit documents remotely? If so, please either contact me personally or, better yet, share what you know in a comment. Thanks!
Frequently Asked Questions Regarding “Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism” https://www.fsa.go.jp/en/news/2022/20221109/20220805_en_amlcft_faq.pdf