You can see the rules and regulations in other jurisdictions.
To accept deposits together with lending funds or discounting bills as a business, or to conduct fund transfers as a business, a banking services licence is required.1
Operators that are entrusted by a bank to provide agency or intermediary services for banking transactions must obtain permission to do so. The legislation came into effect in November 2021 for financial services intermediaries.1
Major shareholders who own more than a certain percentage of equities are subject to specific laws. For instance, those holding at least 20 per cent in banks or insurance companies must seek authorisation under the Banking Act or Insurance Business Act. Meanwhile, shareholders possessing 20 per cent or more of financial instruments businesses must file a report according to the FIEA, with their eligibility evaluated during registration. Furthermore, should a foreign company be a shareholder, an authorisation request to major shareholders and confirmation of registration from financial services operators will investigate whether that company's influence could damage the soundness and stability of Japan's financial system.1
PSA, established in 2010, reduced the burden of obtaining a banking services license by allowing fund transfer businesses to register as fund transfer service providers without obtaining a banking services license. Approximately 80 fund transfer service providers were registered in Japan as of 31 January 2022.1
The banking industry is looking into founding joint institutions in the hope of improving AML and CFT operations. To ensure safe and efficient business activities, licensure and regulations have been proposed to be established for these organizations. Good governance systems, efficient information management and operation, proper handling of personal data as well as suitable filtering and monitoring of transactions are also expected to be met by these institutions.1
