Three Chinese Nationals Arrested Over 'Underground Bank' Allegedly Used to Launder Special Fraud Proceeds
This article organizes publicly available information into a single account. Where it describes an arrest or an ongoing investigation, that reflects only one stage of criminal procedure and does not mean guilt has been established (the presumption of innocence applies). We will update this article as new information becomes available, including the outcome of prosecution, non-prosecution, or trial. This article is not intended to unfairly disparage any individual, group, nationality, ethnicity, or belief, and aims to provide objective, fact-based information.
By June 17, 2026, a joint investigation team of the Metropolitan Police Department and Okinawa Prefectural Police had arrested three Chinese men on suspicion of violating the Banking Act by running an unlicensed money exchange business, or "underground bank." The three are believed to be members of a money-laundering organization that exchanged yen obtained through special fraud schemes for Chinese yuan held by Chinese nationals residing in Japan.
The case is an example of a money-laundering scheme linking special fraud with underground banking, and the investigation spanned jurisdictions covered by both the Metropolitan Police Department and Okinawa Prefectural Police. Current status: The suspects have been arrested; whether they will be indicted has not been disclosed as of this writing.
Converting proceeds from special fraud into Chinese yuan through an underground bank is said to make the money harder to trace than holding or transferring it in yen, and investigators are on alert over cases where special fraud groups are linked to money-laundering infrastructure in this way. The fact that the joint investigation spanned both the Metropolitan Police Department and Okinawa Prefectural Police also underscores the wide geographic scope of the case.
Another underground banking case involving money laundering that has been reported involves an Indonesian couple accused of transferring funds (related coverage).