I have been approached by a Japanese Wholesale food company to be
their payment officer for their export business in North America. The
way this works is that this company's clients make payments to me for
the Japanese food company's behalf.  I deposit money in my bank
account, deduct 5% for my work and 95% is remitted to them.  I have
agreed to this and suppose to receive a substantial sum of payment in
next couple of days. According to their email they are asking for my
help because of increased demand of their product.  My question is
what is the catch here, why isn't client directly paying to japanese
company, what should I look out for?

Dear cpatel20,

You have been approached by criminals. They are trying to abuse you
for their purposes. What they are proposing to you is nothing else but
a widespread scam that exists in countless variants. Read more about
it here:

Job offer spam - Processing payments
http://www.joewein.de/sw/spam-payment-jobs.htm#intro

State of Connecticut: Attorney General Warns Bogus Job Offer Via Email Is
Scam To Obtain Personal Financial Information
http://www.ct.gov/ag/cwp/view.asp?A=1949&Q=293628

Data Wales: The fake job offer fraud
http://www.data-wales.co.uk/ni_fake_jobs.htm


Joe Wein has put it in brief, clear words:

"Please be aware that: 

-No legitimate company will use bank accounts of private individuals
for processing payments from its customers.

-No legitimate business will pay 5% and more for international money
transfers (for example, $250 out of $5000), when banks provide such
services for only $30-50 per transaction and businesses and
individuals can set up their own bank accounts in other countries if
needed.

-No legitimate company uses private individuals to receive parcels and
remail them.

Any job offer that involves any of the above activities is a fraud! 

Job offers on the internet such as the ones listed here involve stolen
money and stolen goods. If you participate in these scams, even
without criminal intent, you could be held liable and face criminal
charges. If you have been recruited, contact the police and notify
your bank. Do not withdraw any cash wired to your account! Do not
forward any parcels mail to your home! Talk to the bank and the police
first!"

I advise not to deal with those fraudsters. Instead, contact the police.
Regards,
Scriptor

I dont understand scriptor.  Reasons being:
1. You dont commit fraud unless you do something knowing that it is
with the intention to deceive someone or is in a scheme of things to
deceive someone.  So long as you do it in good faith, youre off the
hook.

Am not a lawyer but if you dont have any information about any fraud
that the japanese company is trying to commit, how are you a part of
the fraud?

2. The only point is they could issue fraudulent checks in the name of
your account.  Thats combatable too.  What you could do is, not take a
check facility on the account through which you prefer to operate.

I think it could be an opportunity to make a quick buck.  You should
insist on an altered agreement between you an the company.  Read the
clauses carefully, and insist that you insert clauses which state
specifically that you have no idea what the money is being used for
and you have been given all assurance that the company is legitimate
and the funds are being used for legitimate purpose.  Do it fr
sometime, and make some money man.....

Hi Purplecrayon,
I see that this is your first posting on G-A.  Scriptor has answered
numerous questions about fraudulant websites and job proposals.  The
serious information in an answer is often in the linked websites.  If
you read those above, I hope you will understand better the risks in
taking on this type of job.
Regards, Myoarin