Bank account for foreigners

[Jack]

I have a question. As a non-resident in Japan, can I open a bank account? Are banks willing to open accounts in foreign currencies? It's usually very difficult to open an account in non-local currency other than the U.S. dollar anywhere in the world but this being Tokyo... If anyone knows please let me know.

[Mike Oxlong]

Yes, it is possible.

2.4 Bank Accounts in Japan

You will need a bank account in Japan to receive your monthly stipend (see Stipends). Hitachi will assist you in opening an account at the bank of your choice. There are two types of bank accounts available for foreign visitors in Japan: the resident bank account and the non-resident bank account.

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2.4.2 Non-resident Bank Account

If you choose not to register as a foreign citizen (see Foreign Registration), most major banks in Japan offer non-resident bank account services. This type of account can be inconvenient in that you can only make withdrawals at the bank branch where you opened the account, with your bank book and signature.

Items needed to open account:

• Passport
• Contact point (may be a proxy such as Hitachi, Ltd.)

http://www.hitachi.com/society/global/cfr/live/settling.html

[FG Lurker]

It's usually very difficult to open an account in non-local currency other than the U.S. dollar anywhere in the world but this being Tokyo... If anyone knows please let me know.

Citibank and Shinsei both offer multicurrency accounts. HSBC probably does too but I don't have an HSBC account. These sorts of accounts are not uncommon at any large bank in any developed country. I have had a similar account in Canada for many years.

There are pluses and minuses to these types of accounts:

On the plus side, any money you wire into the account from overseas will stay in the currency it arrives in, assuming it is one of the currencies supported by the account. You can then flip the cash to yen at your convenience at the current TTB rate. You can also do international wires out of the account in any of the supported currencies. Neither bank charges to receive wires.

On the minus side, you are unable to make cash withdrawals or deposits to these accounts in any currency other than yen. This includes domestic transfers of course, you have to switch the funds to yen before you can do a domestic furikomi. Also, if you withdraw funds overseas from one of these accounts the funds will NOT be taken from your foreign currency balance. You can only withdraw funds from your yen balance, and typically at very poor exchange rates. My understanding is that this is a limitation of the overall Japanese banking system more than a limitation of these banks in particular.

I have no idea about Citibank or Shinsei's policies regarding opening accounts for non resident foreigners. I suggest finding the largest branch you can and expect to spend more than the normal amount of time there to get it done. You may want to call in advance so they can get things figured out before you show up.

[samuraiwig]

[Jack]

Thanks for the replies. I will follow-up. A few years ago money laundering rules came into effect (post-9/11 I think) and it became very difficult for non-residents to open a bank account in many countries. I was hoping that in Japan the rules would have been different. HSBC is an impossible bank. How that bank makes money is beyond me. Often the subsidiaries of foreign banks try to be holliest of them all to gain the favour of local regulators.

[Mulboyne]

Often the subsidiaries of foreign banks try to be holiest of them all to gain the favour of local regulators.

With good reason in Japan. The FSA has had no qualms about shutting foreign banks down if they fall foul of domestic laws.

[FG Lurker]

A quick Google search says that the following Canadian banks have a presence of some sort or other in Japan:

Scotiabank
Royal Bank of Canada
Canadian Imperial Bank of Commerce
Toronto-Dominion Bank

I have no idea if any of them actually have a functioning branch here or if they are all just an office somewhere, but if you have a relationship with one of them in Canada it might pay to contact their Japan office/branch just to see if there is anything they can do.