Requirements for registering as a funds transfer agent under the Funds Settlement Act

Updated: July 2025, 7

In order to register as a money transfer business operator, you must meet the standards (requirements) set out in the Payment Services Act (commonly known as the Payment Services Act).

Businesses aiming to register are required to have an appropriate internal management system and fund management system in place.

Reasons for refusal of registration under the Payment Services Act

The Funds Settlement Act clearly stipulates the grounds for refusing registration as a funds transfer service provider.
In other words, in order to register, it is necessary to prepare internal systems to avoid falling under these reasons.

Below is a quote from the actual article. (Also included in the table of contents.)
In this article, we will explain each item in an easy-to-understand manner.

(Rejection of registration)

Article XNUMX　The Prime Minister shall, when the applicant for registration falls under any of the following items, or there is a false statement about important matters in the registration application or its attached documents, or there is a lack of mention of important facts. registration must be refused.

One　Those that are not a stock company or a foreign funds transfer service provider (limited to foreign companies that have a business office in Japan)

two　For foreign funds transfer service providers, corporations without a representative in Japan (limited to those with an address in Japan)

three　A corporation that does not have the financial foundations deemed necessary to properly and reliably carry out the fund transfer business.

four　Corporations that do not have a system in place to properly and reliably carry out fund transfer operations.

Five　Corporations that do not have the necessary systems in place to comply with the provisions of this chapter

Six　A corporation that intends to use a trade name that is the same as a trade name currently used by another funds transfer service provider, or a trade name that may be mistaken for another fund transfer service provider.

Seven　The registration under Article 37 is canceled pursuant to the provisions of Article 56, paragraph (1) or paragraph (2); (3), the license under Article 63-23 is revoked pursuant to the provisions of Article 63-37, paragraph 1 or 2, or Article 82-1. or the license set forth in Article 64, Paragraph 1 has been revoked pursuant to the provisions of Paragraph 2 or Paragraph 2, or the same type of registration or license has been obtained in the foreign country pursuant to the provisions of this Act or the laws and regulations of a foreign country equivalent to the Banking Act, etc. or a corporation whose license (including the relevant registration, permit, or other administrative disposition similar to a license) has been revoked, and for which five years have not yet elapsed since the date of the revocation.

Eight　Receives an order to abolish the Specified Funds Transfer Business pursuant to the provisions of Article 56, paragraph (1) as applied by replacing the terms pursuant to the provisions of Article 37-2, paragraph (2), or Article 62-8, paragraph (2); has received an order for the abolition of electronic payment means trading business pursuant to the provisions of Article 62-22, Paragraph 1, as applied by replacing the terms pursuant to the provisions of Article 62-22, paragraph 1, or the provisions of foreign laws and regulations equivalent to this Act or the Banking Act, etc. A corporation that has received an order to abolish the same type of business as these businesses, and for which five years have not yet passed since the date of the order.

nine　This Act, the Banking Act, etc., the Act on the Concurrent Operation of Trust Business by Financial Institutions, the Act on the Regulation of Acceptance of Investments, Deposits and Interest Rates, etc. (Act No. 195 of 1950), or the Trust Business Act, or these A person who violates the provisions of foreign laws and regulations equivalent to the above, is sentenced to a fine (including punishments pursuant to equivalent laws and regulations of a foreign country), and has completed the execution of the sentence or is no longer subject to the execution of the sentence. Corporations for which five years have not passed since the date of

Ten　A corporation whose other business activities are deemed to be contrary to the public interest.

eleven　Directors, auditors, executive officers, or accounting advisors (in the case of foreign funds transfer service providers, a person equivalent to these under the laws of a foreign country or a representative in Japan; hereinafter referred to as "directors, etc." in this chapter). A corporation with a person who falls under any of the following:

Lee　A person specified by Cabinet Office Ordinance as a person who is unable to properly perform duties related to the funds transfer business due to mental or physical disorder.

Russia　A person who does not receive reinstatement of rights after receiving a decision to commence bankruptcy proceedings, or a person equivalent to this under foreign laws and regulations.

Ha　A person who has been sentenced to imprisonment with work or worse (including equivalent punishment pursuant to foreign laws and regulations) and for whom five years have not yet passed since the day he completed the execution of the sentence or ceased to be subject to the execution of the sentence.

D　This law, the Banking Act, etc., the Act on the Concurrent Operation of Trust Business by Financial Institutions, the Act on the Acceptance of Investments, the Control of Deposits and Interest Rates, etc., the Act on the Prevention of Unjust Acts by Organized Crime Group Members (Law No. 7 of 1991), etc. 17) or the Trust Business Act or equivalent foreign laws and regulations, is sentenced to a fine (including punishment under equivalent foreign laws and regulations), and the execution of the sentence is completed, or A person for whom five years have not passed since the day he or she ceased to be subject to the execution of the sentence.

ホ　If a funds transfer business operator's registration under Article 37 is canceled pursuant to the provisions of Article 56, paragraph (1) or (2), or if a corporation is registered in a foreign country pursuant to the provisions of the laws and regulations of a foreign country equivalent to this Act. A person who was a director, etc. of a corporation within 30 days before the date of cancellation, and who has been a director, etc. of the corporation within 30 days before the date of cancellation (including other administrative dispositions similar to said registration); Persons for whom five years have not passed or other persons specified by Cabinet Order as equivalent.

Laws related to fund settlement　https://elaws.e-gov.go.jp/document?lawid=421AC0000000059

Be a stock company or a foreign funds transfer company

Only a stock company or a foreign funds transfer agent can register as a funds transfer agent.
A sole proprietor cannot act as a funds transfer agent.

A foreign funds transfer business operator is a business entity that conducts foreign exchange transactions and is registered in a foreign country in accordance with the laws and regulations of a foreign country equivalent to the Funds Transfer Act.
To register as a foreign funds transfer service provider, you must establish a branch office in Japan.

For foreign funds transfer service providers, there must be a representative with an address in Japan.

When registering as a foreign funds transfer business, it is necessary to be a foreign company with a business office in Japan and to appoint a representative with an address in Japan.

In particular, when appointing a representative of foreign nationality, it is necessary to confirm whether the person's residence status is suitable for conducting the fund transfer business.

Possess the financial base deemed necessary to properly and reliably carry out the fund transfer business.

The guidelines provided by the Financial Services Agency list the following as the financial foundations required of businesses engaged in the funds transfer business.

Regarding the financial basis, there are no quantitative standards such as uniformly determining the amount of capital or net assets.
Depending on the content and method of the funds transfer business that the applicant for registration intends to conduct, a specific examination will be conducted to determine whether the applicant has the necessary financial base.

A system is in place to properly and reliably carry out the funds transfer business.

The funds transfer industry, which is required to play a role as part of social infrastructure, is required to have sufficient business operations and management to conduct remittance operations.

This means that the measures stipulated in the Payment Services Act, such as the fulfillment of asset protection obligations, are ensured.

The necessary systems are in place to comply with the Payment Services Act.

The following guidelines are provided by the Financial Services Agency as criteria for determining whether the necessary systems are in place.

Do not use a trade name that could be misidentified as another funds transfer service provider.

If you attempt to register a funds transfer business using the same or similar trade name or name as another funds transfer business, users will not be able to distinguish between businesses providing exchange transactions, and there is a risk that user protection will be lacking. For some reason, registration is not allowed.

The registration, etc. of a funds transfer business has not been canceled in the past.

Businesses that have had their funds transfer business registration or funds clearing business license revoked in the past five years, or similar registrations or licenses that have been revoked pursuant to the provisions of foreign laws and regulations equivalent to the Fund Settlement Act, Banking Act, etc. persons cannot be registered.

Specified funds transfer business in the pastorhas not received an order to abolish electronic payment means trading business, etc.

Businesses that have received an abolition order regarding specified funds transfer business or electronic payment method transaction business in the past five years, or an abolition order for similar businesses based on foreign laws and regulations equivalent to the Fund Settlement Act, Banking Act, etc. Businesses that have received this notification will not be able to receive registration.

Have not been sentenced to a fine in the past for violation of the Payment Services Act, Banking Act, etc.

Businesses that have violated the Payment Services Act, Banking Act, etc., Investment Act, or equivalent foreign laws and regulations in the past five years and have been sentenced to a fine or equivalent foreign punishment must not register. I can't accept it.

Ensure that other business activities are not contrary to the public interest.with

Funds transfer companies must be reliable because they play a part in social infrastructure.

A person whose business other than the funds transfer business is deemed to be contrary to the public interest may not become a funds transfer business.

Businesses that are contrary to the public interest include not only illegal businesses but also businesses that are recognized as socially unjust; for example, businesses that are related to anti-social forces such as organized crime groups, or businesses that are subject to social criticism. , or something that is likely to be affected.

Directors, auditors, etc. do not fall under adult wards, etc.

If a business seeking to register as a funds transfer business has an officer who falls under any of the disqualification conditions listed below, registration will not be possible.

1. Adult ward, person under curatorship (person equivalent to these under foreign laws and regulations)
   
   
2. A person who does not receive reinstatement of rights after receiving a decision to commence bankruptcy proceedings (a person equivalent to this under foreign laws and regulations)
   
   
3. A person who has been sentenced to imprisonment with work or higher (an equivalent foreign sentence) for which five years have not yet passed.
   
   
4. 5 years for those who have been sentenced to a fine (equivalent foreign punishment) for violating the Payment Services Act, Banking Act, etc., Investment Act, Act on Punishment of Violent Acts (equivalent foreign laws and regulations). Those who have not passed
   
   
5. A person who was a director, etc. within 30 days before the cancellation of the registration of a funds transfer service provider (if the same type of registration is canceled in a foreign country), and for whom 5 years have not yet passed, and any other person A person specified by Cabinet Order as equivalent.

Funds transfer business operator license registration procedures

The procedure for registering a license for a money transfer business is as follows:3 steps.

Prior consultation

"Preliminary consultation list” etc.,Interview with the Finance Bureauto hold.

Draft review

Draft all application documents.

From the Finance BureauWork organizing tableFor allQuestionwithPointed outIt corresponds to.

Main examination

Submit all application documents. The standard processing period (= examination period) is2 months.

If you conduct money transfer business (exchange transactions) without registration, you will be subject to penalties under the Banking Act as an unlicensed business operator in violation of Article 4, Paragraph 1 of the Banking Act.
The list of corporations registered as money transfer businesses is published on the Financial Services Agency website.List of funds transfer agent registrationIt is published in.

For consultation regarding funds transfer business, please contact Support Administrative Scrivener Corporation

At Support Administrative Scrivener Corporation, we provide application support and consulting regarding the Fund Settlement Act for both those newly entering the funds transfer industry and existing funds transfer companies.

Funds transfer business registration is highly specialized and can be said to be one of the fields in which there are few administrative scriveners who can handle it.
We provide legal services related to the funds transfer industry based on the know-how and track record that we can accumulate because we are administrative scriveners who handle applications and negotiations with administrative agencies on behalf of companies on a daily basis.

The first consultation is free of charge.
Please contact us using the phone number or inquiry form below.

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03-5325-1355(Weekdays 9:12-13:18, XNUMX:XNUMX-XNUMX:XNUMX)

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