Japanese police say suspects who have been arrested on suspicion of using dummy corporations to launder money obtained through fraud likely transferred the funds to bank accounts in Southeast Asia.

Police arrested company executive Fujii Ryohei of Kawasaki City, south of Tokyo, and 11 others on suspicion of violating a law targeting organized crime.

They are suspected of having laundered money worth more than 5.5 million yen, or about 35,200 dollars, over a period of nearly two years through last June.

Police believe the suspects set up dummy companies and then used corporate bank accounts to receive money from fraud victims.

Police believe they laundered money at the behest of various criminal syndicates.

They say the suspects allegedly managed 4,000 or more corporate bank accounts that received at least 60 billion yen, or about 385 million dollars.

Investigators say it's likely the suspects quickly transferred such money to bank accounts in Southeast Asian countries, mixed it with funds from other sources and then sent the laundered money back to their clients.

Police have yet to disclose whether the suspects have admitted to the allegations.