Funds Transfer Industry Index
Updated: July 2024, 12
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〇lump sum deposit :
When operating multiple types of fund transfer businesses, performance deposits are deposited all at once through the same procedure. A lump-sum deposit is only possible if the calculation period, base date, and deposit deadline for each type of performance bond are the same.
〇suspicious transaction :
Transactions that financial institutions, etc. should pay attention to when fulfilling their obligation to report suspicious transactions stipulated in Article 8 of the Act on Prevention of Transfer of Criminal Proceeds. Funds transfer companies are obligated to notify the competent administrative agency (Financial Services Agency) when they detect a transaction that may constitute money laundering or the transfer of terrorist funds.
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〇Refund procedure :
Payment procedures that are carried out in order to protect the interests of the users of the funds transfer business when a request is received from the users of the funds transfer business or when the funds transfer business goes bankrupt.
〇Deposit deadline :
Deadline from when unfulfilled debt is calculated to when unfulfilled debt is deposited. For Type 3 Funds Transfer Business, within one week from each business day, and for Type XNUMX Funds Transfer Business or Type XNUMX Funds Transfer Business, within XNUMX business days from the base date arbitrarily determined by the Funds Transfer Business. stipulate.
〇Deposition :
One of the methods of depositing a performance bond. It is necessary to pay cash and bonds equal to or greater than the performance bond to the nearest legal affairs bureau.
〇correspondent contract :
If the funds transfer company does not have a branch in the country where the money transfer is being made, a transfer agency contract is entered into with a bank (correspondent) in the country to handle foreign exchange transactions, collection of payments, outsourcing of remittances, etc. A contract that uses a bank in the other country as a relay point for overseas remittances.
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〇property basis :
One of the registration requirements for funds transfer businesses. The capital base deemed necessary to properly and reliably carry out the fund transfer business from the perspective of the obligation to preserve assets and the ability to invest in remittance systems.
〇Minimum performance guarantee amount :
The minimum amount that a funds transfer service provider is required to deposit. It is currently set at 1,000 million yen. Even if the total amount of unfulfilled debts and the costs associated with the procedure for enforcing rights (refund procedures) is less than this amount, it must be prepared.
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〇Type 1 funds transfer business :
It is a type of funds transfer business, and there is no upper limit on the amount of exchange transactions handled. This mainly applies to inter-business remittance services and high-value item payment services. Because the amount handled can be large, examinations such as asset preservation management are more stringent than for other types. Additionally, before commencing operations, it is necessary to create a business implementation plan and obtain approval for the plan from the Prime Minister.
〇Type 2 funds transfer business :
It is a type of fund transfer business, and the upper limit for each foreign exchange transaction handled is set at 100 million yen. This mainly applies to international remittance services and electronic money issuing services.
〇Type 3 funds transfer business :
A type of fund transfer business in which the upper limit for each foreign exchange transaction handled is set at 5 yen. In addition to the amount of remittance per transaction, it is also prohibited to incur debts exceeding a certain amount (total of 5 yen) to each user. This mainly applies to electronic money issuing services.
〇Transaction confirmation :
Confirm personal identification information (name, residence, date of birth, etc.), purpose of transaction, occupation (for individuals), business details (for corporations), etc. of users of funds transfer services. Funds transfer companies are required to implement this when conducting foreign exchange transactions involving the receipt and payment of cash exceeding 10 yen, or continuous or repeated foreign exchange transactions (specified transactions).
〇Transaction monitoring :
A method of reducing transaction risk by detecting abnormal transactions, etc. It is necessary to focus on accounts, transactions, and customer movements to identify transactions that are likely to be ``suspicious transactions'' that should be reported to the authorities.
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〇Act on Prevention of Transfer of Criminal Proceeds (Act on Prevention of Transfer of Criminal Proceeds) :
A law that establishes certain obligations and regulations for financial institutions, etc. in order to prevent money laundering and terrorist financing. For fund transfer service providers, the obligation to perform confirmation at the time of transaction, the obligation to create and preserve confirmation records and transaction records, the obligation to report suspicious transactions, the obligation to confirm when concluding a correspondent contract, the obligation to notify regarding foreign exchange transactions, and transactions. Measures have been taken to ensure accurate time checks.
〇Standard performance period :
The period of time required from when the funds transfer agent receives a remittance instruction from the sender until the recipient receives the remitted funds. Varies depending on service.
〇Fatf :
FATF is an abbreviation for Financial Action Task Force. An intergovernmental organization established to promote international cooperation in combating money laundering and terrorist financing. It was established at the Arche Summit in July 1989 to strengthen international cooperation in combating money laundering related to drug crimes. Since then, the scope has expanded beyond drug crimes to include countering organized crime, countering terrorist financing, and imposing sanctions against the proliferation of weapons of mass destruction. Currently, 7 countries/regions and 37 regional organizations are members, and matters related to FATF's activities are decided at general meetings three times a year. In order to identify countries and regions that are insufficiently compliant with international standards and monitor their progress, the FATF has established a list of "high-risk countries and regions subject to calls for action" (the so-called black list) and "countries and regions subject to enhanced monitoring". ” (so-called gray list) was published. There are nine FSRBs (FATF-style regional bodies) in each region of the world, and countries and regions that are members of the FSRB, like FATF member countries, conduct mutual reviews in accordance with FATF recommendations. FATF recommendations have been implemented in more than 2 countries and regions around the world. The FSRB located in the Asia/Pacific region has APG (Asia/Pacific Groupon Money Laundering) in Sydney. Japan is also a member of the APG and participates in its activities.
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〇unfulfilled debt :
This refers to the debt that a funds transfer company incurs when conducting foreign exchange transactions. For example, when transferring funds from A to B, the funds held by the funds transfer service provider from the user during the period from the time A deposits the funds to the time B receives the funds are considered unfulfilled debts.
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〇Performance guarantee amount required :
The sum of the amount of unfulfilled debt held by a funds transfer service provider and the cost of procedures for refunding to users. Required to protect users' funds.
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〇Calculation time of completion amount :
The time specified by the funds transfer service provider between the time the unfulfilled debt is calculated and the deposit deadline. Only Type 1 Funds Transfer Business Operators are required to fill in the information.
〇Performance deposit trust contract :
One of the methods of depositing funds. A method in which a funds transfer service provider concludes a trust agreement with a trust company, etc., with the purpose of the trust being to allocate the trust assets to the deposit of a performance security deposit. Can be replaced. In other words, the amount secured under the contract can be converted into part or all of the performance bond in the form of money or bonds.
〇Performance deposit maintenance contract :
One of the methods of depositing funds. A security contract entered into with a bank, etc. regarding a performance bond, which can be substituted for the deposit of a performance bond within the amount of the security contract. In other words, the amount secured under the contract can be converted into part or all of the performance bond in the form of money or bonds.
