Internal Audits and Compliance System

Internal Audits
Principles of Internal Audits

Implementation of Internal Audits

We define an internal audit as a series of processes for

YMFG’s Audit and Inspection Dept. plans audit processes

objective verification of the appropriateness and effectivenessfor the whole Group, implements audits and supervises eachof internal controls (including risk management) and asGroup company’s internal audits.

making suggestions for necessary improvements.
YMFG has devised standard internal audit rules for theThe YMFG Audit and Inspection Dept. devises the rules
and medium-term plans for the Group’s internal audits,

whole Group. On the basis of these rules, the internal audit

implements audits of the Group companies’ compliance/risk

departments of each Group company implement audits.

management departments and checks the accuracy of theFurther, YMFG creates the Group’s medium-term internal
audit plan on the basis of its management policy andfinancial statements of the Group companies.
Internal audits of front-line sales outlets are performed toconditions. Internal audits by the auditing bodies of eachverify the status of compliance and risk management functions

Group company are conducted on the basis of this plan toand ensure their mutual effectiveness.

ensure their effectiveness and efficiency.

The department monitors and gives guidance and advice
to the Group companies’ audit and inspection departments.
On the basis of their audit reports, the department reports on
the internal audits of the Group to the Board of Directors andaudit and supervisory committee.

Compliance System
YMFG’s Attitude toward Compliancebody of YMFG. We also formulate compliance programs for

YMFG shares a common understanding of their responsibilities

each fiscal year, which equate to specific execution plans, andto fulfill their public mission and corporate social

monitor the status of program implementation.

responsibilities as a financial group. Accordingly, we accord
topmost management priority to thorough compliance, take

Efforts to Prevent Money Laundering

the seriousness of compliance seriously and consider earning

The Act on Punishment of Organized Crimes and Control of

the trust of a broad-based society our fundamental policy.

Crime Proceeds and the Law for Prevention of Transfer of
Criminal Proceeds prescribes heightened measures to prevent

Compliance Systemmoney laundering. The Group’s efforts are appropriate and in

To ensure appropriate compliance, YMFG has established theconformance with these regulations, in keeping with our aim

Compliance Management Department. In addition to ensuringof maintaining society’s trust in us as a financial institution.

the status of compliance, this department conducts related

Specifically, we have formulated a policy of controls andtraining for executives and employees. This department liaises

procedures reasonably designed to prevent and detect moneywith the compliance management department of YMFG’slaundering/terrorist financing activities. We have appointed

subsidiaries as part of its efforts to centralize compliancea senior officer to take charge of this policy and establishedmatters throughout the Group.

training programs on this topic for all management and staff.

The Group Compliance Committee acts as a deliberative

13

YMFG Annual Report 2019