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.

The YMFG Audit and Inspection Dept. devises the rules andYMFG has devised standard internal audit rules for themedium- to long-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- to long-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 Complianceand monitors the status of program implementation. The

YMFG and its Group companies share a common understanding

committee discusses ways to create and reinforce complianceof their responsibilities to fulfill their public mission andsystems, reports the results of these deliberations to the Board

corporate social responsibilities. Accordingly, we accordof Directors and reflects these results in Group operations.

topmost management priority to thorough compliance, take

YMFG’s Compliance Administration Department

the seriousness of compliance seriously and consider earning

communicates with compliance personnel at each Groupthe trust of a broad-based society our fundamental policy.

company and, in accordance with the deliberations of theGroup Compliance Committee, ensures the appropriateness ofCompliance Systemcompliance systems for the entire Group.

We have established a compliance administration department
to take overall charge of ensuring appropriate compliance

Efforts to Prevent Money Launderingfor YMFG and its Group companies. Individual companies’

The Act on Punishment of Organized Crimes and Control ofcompliance departments handle the centralized management

Crime Proceeds and the Law for Prevention of Transfer ofof compliance-related activities, including the creation ofCriminal Proceeds prescribes heightened measures to prevent

compliance structures and the training of executives andmoney laundering. The Group’s efforts are appropriate and ingeneral employees. Compliance supervisors and officers at all

conformance with these regulations, in keeping with our aim

departments and branches foster an enhanced awareness ofof maintaining society’s trust in us as a financial institution.

appropriate compliance in daily operations.

Specifically, we have formulated a policy of controls and

The Group Compliance Committee acts as a deliberative

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procedures reasonably designed to prevent and detect money

body of YMFG and its Group banks and the Compliancelaundering/terrorist financing activities. We have appointed

Committee act for other Group companies. This committee

a senior officer to take charge of this policy and establishedformulates Group compliance programs for each fiscal year

training programs on this topic for all management and staff.

YMFG Annual Report 2018