Opening a Corporate Account with a Major Japanese Bank: Key Strategies to Build Business Credibility

In recent years, due to the tightening of anti-money laundering (AML) regulations, it has become increasingly difficult for new corporations—especially those recently established—to open corporate bank accounts at Japan’s major banks (megabanks). This is because financial institutions have significantly strengthened their screening processes to prevent the transfer of criminal proceeds and terrorist financing.

This article explains the current situation regarding corporate account openings at megabanks, along with practical strategies to increase a company’s credibility and improve the chances of approval.

1. Background: Why Opening Corporate Accounts Has Become Stricter

Strengthened Anti-Money Laundering Measures

The Financial Services Agency of Japan has instructed financial institutions to thoroughly verify identities and understand transaction backgrounds to prevent money laundering and terrorist financing. As a result, newly established companies are now required to provide detailed explanations of their business activities and transaction purposes during account applications.

Enforcement of the Act on Prevention of Transfer of Criminal Proceeds

Under this law, financial institutions are obligated to verify the following information when opening a corporate account:

• Legal name and registered office of the company
• Purpose of the transaction
• Description of the business
• Identification of the beneficial owner

Financial institutions use this information to determine whether to approve the account.

2. Current State of Corporate Account Openings at Megabanks

Strict Screening for Newly Established Corporations

Megabanks assess the following factors when reviewing account applications from new companies:

• Verification of Business Operations: Whether the company has an actual office and employees
• Transparency of Transactions: Clear and legitimate business dealings that are not at risk of misuse
• Representative’s Credit History: The financial and personal background of the company representative

More Required Documents and Detailed Explanations

Applicants are typically required to submit:

• Certificate of company registration
• Articles of incorporation
• Representative’s ID
• Business plan
• Contracts or invoices from clients

Additionally, applicants may be asked to explain their business and transactions in detail during interviews.

3. Practical Strategies to Improve Corporate Credibility

1. Clearly Demonstrate Business Operations

• Establish a Physical Office: Use a real office space rather than a virtual office to demonstrate legitimacy
• Build a Professional Website: Clearly outline your business and contact information
• Show Business Records: Provide contracts or invoices to prove existing operations

2. Use Trusted Referrals

• Get Introductions from Business Partners or Tax Advisors: A referral from a trusted third party can strengthen your credibility

3. Leverage Government Startup Loans

• Obtain Loans from Institutions like Japan Finance Corporation: Public financing adds weight to your business’s legitimacy

4. Build Relationships with Local Financial Institutions

• Start with Local Credit Unions or Regional Banks: Establishing a track record locally can make it easier to open a megabank account later

4. Why Having a Megabank Account Enhances Credibility

1. It Proves You Passed a Strict Screening Process

Opening an account at a megabank (e.g., MUFG, SMBC, Mizuho) means:

• The business is legitimate
• The representative’s background is transparent
• Sufficient documentation was submitted

This implies a higher level of corporate trustworthiness.

2. Provides Reassurance to Clients and Investors

• Showing a megabank account on contracts and invoices signals professionalism and reliability
• For listed or large companies, having a megabank account may be a key credibility requirement

3. May Positively Impact Loan and Guarantee Reviews

• Banks can refer to your transaction history when reviewing loan applications
• Institutions like Japan Finance Corporation or credit guarantee associations may ask about your bank account, and a megabank account can be favorably evaluated

5. Conclusion

Opening a corporate account at a Japanese megabank has become more difficult, especially for newly established corporations, due to stronger anti-money laundering regulations. However, by demonstrating real business activities and proactively building your company’s credibility, your chances of success can improve.

Key Takeaways:

• Prepare documentation that proves actual business operations
• Leverage referrals from trusted third parties
• Build credibility through public financing
• Start with local financial institutions to build a track record

These efforts will not only help you open a corporate account, but also strengthen your company’s trustworthiness and support long-term business success.

Keep moving forward—step by step—with confidence that your efforts will pay off.