Sending Money from Japan to China: Options and Regulations

Navigating the rules for sending money from Japan to China can be tricky due to strict regulations. In this guide, we break down the best remittance services, explain the essential “My Number” requirements, and show you how to ensure your family receives their funds via Alipay, WeChat, or UnionPay without hassle.

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Why Sending Money to China Feels Different

Living in Japan is a rewarding experience, but for the hundreds of thousands of Chinese residents here, there is always a strong connection to home. Whether you are supporting your parents in Shanghai, saving for a property in Beijing, or sending a “Hongbao” (red envelope) for the Lunar New Year, moving money across the East China Sea is a regular necessity.

However, if you have tried to send money recently, you know that transferring funds to China is unique. Unlike sending money to Europe or the US, you have to navigate two very strict sets of financial regulations: Japan’s anti-money laundering laws and China’s capital controls.

I remember the first time I tried to send money back. I walked into a major Japanese bank, filled out three pages of forms, paid a high fee, and then waited a week only to find out the transfer was rejected because of a minor spelling error. It was frustrating and expensive.

The good news is that the landscape has changed. With the rise of fintech apps and better integration with Alipay and WeChat Pay, sending money is now faster and cheaper than ever. In this post, I will walk you through the options, the regulations you must know, and how to get the most Yuan for your Yen.

The Two Big Regulatory Hurdles You Must Know

Before we look at the apps, we need to talk about the rules. Ignoring these can lead to frozen funds or tax audits.

The Japanese Side: The My Number Card

In Japan, you cannot send a single yen abroad without verifying your identity using your “My Number” (Individual Number). This is a strict requirement for all financial institutions to prevent money laundering.

If you are using a remittance app or a bank, you will need to upload a photo of your My Number Card (the plastic card) or your Juminhyo (Residence Certificate) that lists the number. If you have moved recently, ensure your address on the card matches your current address exactly, or your application will be rejected.

MyNumber in Japan What Expats Need to Know for Banking and Taxes

The Chinese Side: The $50,000 Limit

China maintains strict foreign exchange controls. Generally, a Chinese citizen is limited to exchanging the equivalent of $50,000 USD (approx. 7 to 8 million JPY depending on rates) per year from foreign currency into Chinese Yuan (CNY).

If you send more than this limit to one person, they may not be able to convert it into Yuan. It will sit in their account as foreign currency, or the transfer might be returned. If you need to send large amounts for a property purchase, you often need to send to multiple family members or provide extensive documentation to the receiving bank in China.

Why Digital Remittance Apps Are Winning

In the past, we relied on the SWIFT network through major banks like MUFG or SMBC. While safe, these are slow and expensive, often charging 4,000 to 6,000 JPY per transfer plus hidden exchange rate markups.

Today, digital remittance services are the preferred choice for most expats. They offer better exchange rates and, crucially, they connect directly to the digital wallets that Chinese families actually use daily.

International Money Transfer Apps: Top Services for Expats in Japan

Option 1: Wise for Transparency and Alipay

Wise (formerly TransferWise) has revolutionized international transfers by offering the mid-market exchange rate—the real rate you see on Google—and charging a transparent fee.

For transfers to China, Wise allows you to send money directly to users’ Alipay or WeChat Pay accounts, as well as UnionPay cards.

Why I like it:

• Speed: Funds often arrive in seconds.
• Transparency: You know exactly how much CNY your recipient will get.
• Ease: Your family in China does not need to go to a bank branch. They just receive a notification on their phone.

The Catch:

The recipient in China must set up their Alipay or WeChat to receive international remittances. They usually need to link a bank card and authorize the “Global Remittance” function within the app. Once set up, it is seamless.

Sending Money from Japan to China: Cheapest Options

Option 2: Panda Remit for Specialized Service

Panda Remit is a service built specifically for the global Chinese diaspora. Because their primary focus is China, their user interface and customer support are tailored perfectly for Chinese speakers and the specific nuances of the Chinese banking system.

Why I like it:

• Rates: They often offer extremely competitive promotional rates for first-time users.
• Focus: They understand the local documentation requirements better than Western-focused apps.
• Integration: Deep integration with WeChat official accounts for tracking transfers.

Option 3: Seven Bank for 24/7 Convenience

If you prefer a Japanese infrastructure or need to deposit cash physically, Seven Bank is a powerhouse. You can sign up for their international money transfer service (often powered by Western Union or similar partners) and receive a dedicated debit card.

You simply walk into any 7-Eleven in Japan—and there is one on every corner—insert your card into the ATM, deposit cash, and the money is sent to your registered beneficiary.

Why I like it:

• Accessibility: You can send money at 3 AM if you want.
• Western Union Network: If your family in China lives in a rural area without easy access to major banks, they can pick up cash at a local Western Union agent.

Foreign Exchange in Japan Exchange Offices vs ATMs-Which to Use?

Option 4: SBI Remit for the UnionPay Connection

SBI Remit is highly popular among the Asian community in Japan. They have a strong partnership with MoneyGram and, importantly, UnionPay.

Using SBI Remit, you can send money directly to a UnionPay card number. In China, almost everyone has a UnionPay card. It acts as the backbone of the banking system there.

Why I like it:

• Deposit Cards: Like Seven Bank, they give you a deposit card (Remit Card) that you can use at Lawson Bank or Japan Post Bank ATMs.
• Trust: SBI is a major financial group in Japan, offering high security.

Best Banks in Japan for Foreigners: Account Comparison

Comparison of Transfer Services

To help you decide, here is a quick comparison of the features that matter most when sending money to China.

Feature	Wise	Panda Remi	Seven Bank	SBI Remit
Best For	Tech-savvy users	Best Rates	Cash Convenience	UnionPay Users
Recieving Method	Alipay, WeChat, UnionPay	Alipay, WeChat, Bank	Cash Pickup, Bank	UnionPay, Cash Pickup
Speed	Minutes to Hours	Minutes to Hours	Minutes (Cash)	10 Min – 1 Day
Exchange Rate	Mid-market (Real)	Competitive	Bank Rate (Markup)	Competitive
Fees	Transparent %	Flat fee + %	Tiered Flat Fee	Flat Fee
Language Support	English, Japanese	Chinese, English	Multi-language	Multi-language

The Tax Benefit You Might Be Missing

Here is a financial hack that many new residents overlook. If you are working in Japan and paying income tax, sending money to your family in China can save you a significant amount of money on your Japanese taxes.

This is called the Dependent Deduction (Fuyo Kojo).

If you financially support relatives abroad (parents, grandparents, etc.), you can deduct a certain amount from your taxable income in Japan. This lowers your Residence Tax and Income Tax.

The Requirements:

1. Proof of Relationship: You need birth certificates or family registers (Hukou) showing you are related.
2. Proof of Remittance: You need a Remittance Statement (Soukin Shomeisho) for each person you support.

Crucial Warning: You cannot just send one lump sum to your father and say “share this with mom.” The Japanese tax office requires separate transfer slips for each dependent. If you want to claim both parents, you must make two separate transfers.

Tax Deductions in Japan: How Expats Can Claim Medical and Dependent Expenses

How to Verify Your Identity (KYC)

Japan’s “Know Your Customer” (KYC) laws are strict. When you sign up for any of these services, be prepared to do the following:

1. Download the App: Install the remittance app of your choice.
2. e-KYC: Most apps now use “e-KYC.” You will be asked to take a photo of your Residence Card (Zairyu Card) from the front, back, and at a tilted angle to prove it is real.
3. Selfie: You will need to take a selfie or a short video of your face moving to prove you are a live person.
4. Wait: Verification usually takes from 1 hour to 1 business day.
5. Address Verification: Some older services may still mail a postcard to your home with a code to verify your address, though this is becoming rarer.

Opening a Bank Account in Japan: New Expat Starter Tips

Avoiding the Underground Banks

In the Chinese community in Japan, you might hear whispers of “private exchanges” or underground banks (Chuka banks) operating via WeChat groups. They might offer exchange rates that look too good to be true or promise “instant” transfers without ID checks.

Stay away from these.

Using unlicensed remittance services is illegal in Japan.

• Risk of Frozen Funds: If the “banker” gets caught for money laundering, your money could be frozen by authorities in either Japan or China.
• Visa Issues: If you are caught using illegal channels, it could negatively impact your visa renewal or Permanent Residency application in Japan.
• Scams: There is no legal recourse if they simply take your money and disappear.

Always stick to services licensed by the Japanese Financial Services Agency (FSA).

Avoiding Common Financial Scams in Japan (Phishing, Phone Scams)

Understanding the Recipient’s Experience

When you hit “send” from Tokyo, the process isn’t quite over. Your family member in China might need to take action.

For Bank Transfers:

If it is a large amount, the Chinese bank might call the recipient to ask for the source of funds (“What is this money for?”). Your family should answer truthfully (e.g., “Family support from my son/daughter working in Japan”).

For Alipay/WeChat:

The first time you send money to them, they will receive a text message with a link to sign a digital agreement allowing international transfers. If they don’t sign this within a certain timeframe (usually 24-48 hours), the money will be returned to you. Remind them to check their phone messages!

When to Use Traditional SWIFT Transfers

I mentioned earlier that traditional banks are slow. However, there is one scenario where they are still useful: Large Transfers.

If you are transferring a very large sum (over 1 million JPY), many apps have transfer limits. Traditional banks like MUFG, SMBC, or Sony Bank can handle larger amounts, provided you have the documentation to prove the source of funds (like a payslip or property sale agreement).

Withdrawing Large Amounts in Japan: Bank Limits and Procedures

Conclusion: Making the Right Choice

Sending money from Japan to China has evolved from a bureaucratic nightmare into a manageable, digital process. The key is to match the service to your needs.

• For speed and small daily gifts: Use Wise or Panda Remit connected to Alipay/WeChat.
• For regular family support and tax deductions: Use SBI Remit or Seven Bank to create a paper trail for your tax return.
• For massive one-time transfers: Stick to Sony Bank or a major Japanese bank.

By understanding the “My Number” rules and the Chinese receiving limits, you can ensure your hard-earned money crosses the ocean safely. Take a moment this weekend to set up a digital account—your family (and your future tax bill) will thank you.

Disclaimer

This article is for general informational purposes only and does not constitute professional advice. Laws, prices and regulations vary by location and change over time. Consult a qualified professional for guidance on your specific situation.