Kyoto Arrests Uncover Alleged Underground Banking Ring for Chinese Clients

Police in Kyoto have arrested three individuals suspected of operating an unlicensed underground banking service for Chinese clients. The suspects, including a 56-year-old company executive from Kyoto's Ukyo Ward and two Chinese nationals, allegedly conducted foreign-exchange transactions worth around 600 million yen in total.

The group is believed to have exchanged Japanese yen for Chinese yuan without government authorization between 2023 and 2024. According to police, they received requests from foreign nationals in Japan, accepting cash payments of Japanese yen before transferring the equivalent amount of yuan into bank accounts held by the suspects in China.

The annual limit for individuals to remit abroad or receive funds from overseas is around 7.66 million yen in China, with investigators suggesting that the group's activities may have circumvented these restrictions.

Takahashi, the company executive, reportedly told investigators during voluntary questioning that he needed yen to purchase real estate, but it remains unclear whether the suspects have admitted or denied the allegations following their arrests.