How to Transfer Money From the US to Japan

Transferring money from the United States to Japan is a common financial need for individuals and businesses alike. Understanding the different methods available, the information needed, and the regulatory landscape can help ensure your funds reach their destination efficiently.

Choosing Your Transfer Method

Several avenues exist for sending money from the United States to Japan, each with distinct characteristics regarding speed, fees, and convenience. Traditional bank wire transfers send funds directly from one bank account to another. These transfers typically take between one to five business days to complete, sometimes extending to three to five days if routed through the SWIFT network. Fees for bank wires from US banks often range from $30 to $50 per transaction, and exchange rates can include a markup.

Dedicated online money transfer services offer alternatives to traditional banks, often with competitive rates and faster delivery. Wise, for instance, is known for using the mid-market exchange rate and charging lower fees, with funds often arriving within one business day. Other services like Remitly and Xoom, a PayPal service, facilitate transfers to bank accounts, cash pickup locations, or even mobile wallets in Japan. These platforms provide upfront fee and exchange rate disclosures, allowing senders to see the exact amount the recipient will receive.

Western Union and Xe Money Transfer also provide online services for sending money to Japan, offering options for bank deposits, cash pickup, or direct transfers to debit cards. Transfer speeds for these services can range from minutes to several business days, depending on the chosen delivery method and payment option. The U.S. Postal Service stopped selling international money orders as of October 1, 2024, making this method largely unavailable for new transfers.

Gathering Required Information and Understanding Regulations

Specific information and documentation are required from both the sender and the recipient. Senders in the United States typically need to provide a valid government-issued identification, such as a driver’s license or passport, along with their address and bank account details if funding the transfer from a bank. Financial institutions are mandated to collect and verify this identity information as part of Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These processes help prevent financial crimes by confirming the identity of individuals involved in transactions.

For the recipient in Japan, you will generally need their full legal name, physical address, and the name and address of their bank. Essential banking information includes the recipient’s bank account number and the bank’s SWIFT/BIC (Society for Worldwide Interbank Financial Telecommunication/Bank Identifier Code). For local Japanese bank accounts, some services may also request the recipient’s name in Katakana and the specific account type (e.g., ordinary savings or checking).

Regulatory requirements under the Bank Secrecy Act (BSA) in the United States govern international money transfers. Financial institutions are required to maintain records of international payments exceeding $3,000 and report cash transactions over $10,000 to the Financial Crimes Enforcement Network (FinCEN). This reporting threshold applies to single transactions or multiple transactions by the same person within a business day that aggregate to more than $10,000. These measures are in place to detect and deter illicit financial activities such as money laundering.

Initiating and Completing Your Transfer

Once you have selected a transfer method and gathered all necessary information, initiating the transfer is straightforward. For online services, this often means logging into your account on the provider’s website or mobile application. If using a bank, you may need to visit a branch or access their online banking portal.

Next, accurately enter the recipient’s details, including their full name, address, bank name, account number, and the SWIFT/BIC code. Specify the amount you wish to send in US dollars. The service will display the exchange rate applied and any associated fees, showing the exact amount the recipient will receive in Japanese Yen.

After reviewing all the details, select your preferred payment method, such as linking a bank account for an Automated Clearing House (ACH) transfer, or using a debit or credit card. Many services provide a unique transaction ID or a Money Transfer Control Number (MTCN) that allows you to track the progress of your transfer. Confirmation of delivery usually occurs via email or in-app notifications, with timelines varying from minutes to several business days depending on the service and chosen delivery option.