Compliance System

YMFG Compliance System
Group companies

YMFG

General Meeting ofStockholders

The Banks
Board of Directors
Compliance Committee

ReportBoard of Corporate Auditors

ReportAudit

Compliance Administration Dept.

Board of Directors

Accounting Auditor

Other subsidiaries

Direction
ReportInquiry

Reward and Punishment Board
Secretariat: Corporate Administration Dept.
Deliberation

Board of Directors

Group Compliance Committee

Compliance Committee

Secretariat: Compliance
Administration Dept.

Compliance Administration Dept.

Direction

ReportGuidance, Response, Monitoring

Direction

ReportAdviceCompliance Administration
Dept.
Guidance, Direction, Monitoring
Report/Consulting
Direction/Response
Department in Chargeof operation
Audit

Report/Consulting
Report/Consulting
Compliance supervisor

Departments

Compliance officer

Report/Consulting

LawyerAudit/
ReportReport/Consulting

Report/Consulting

Employees
Audit
Audit and Inspection Dept.

YMFG’s Attitude toward Compliance
YMFG and its Group companies share a common understandingof their responsibilities to fulfill their public mission andcorporate social responsibilities. Accordingly, we accord topmost
management priority to thorough compliance, take the seriousness
of compliance seriously and consider earning the trust of a broadbased society our fundamental policy.

YMFG

18compliance programs for each fiscal year and monitors the statusof program implementation. The committee discusses ways tocreate and reinforce compliance systems, reports the results ofthese deliberations to the Board of Directors and reflects theseresults in Group operations.
YMFG’s Compliance Administration Department communicateswith compliance personnel at each Group company and, inaccordance with the deliberations of the Group Compliance
Committee, ensures the appropriateness of compliance systems
for the entire Group.

Compliance System

Efforts to Prevent Money Laundering

We have established a compliance administration department totake overall charge of ensuring appropriate compliance for YMFG
and its Group companies. Individual companies’ compliancedepartments handle the centralized management of compliancerelated activities, including the creation of compliance structures
and the training of executives and general employees. Compliancesupervisors and officers at all departments and branches foster
an enhanced awareness of appropriate compliance in daily
operations.
The Group Compliance Committee, chaired by the president,
acts as a deliberative body. This committee formulates GroupThe Act on Punishment of Organized Crimes and Control ofCrime Proceeds and the Law for Prevention of Transfer of
Criminal Proceeds prescribes heightened measures to preventmoney laundering. The Group’s efforts are appropriate and in
conformance with these regulations, in keeping with our aimof maintaining society’s trust in us as a financial institution.
Specifically, we have formulated a policy of controls andprocedures reasonably designed to prevent and detect money
laundering/terrorist financing activities. We have appointed asenior officer to take charge of this policy and established training
programs on this topic for all management and staff.