Internal Audits and Compliance System

Internal Audits
Principles of Internal Audits

for the whole Group, implements audits and supervises each

We define an internal audit as a series of processes forGroup company’s internal audits.

objective verification of the appropriateness and effectiveness

The YMFG Audit and Inspection Dept. devises the rules andof internal controls (including risk management) and as

medium- to long-term plans for the Group’s internal audits,making suggestions for necessary improvements.

implements audits of the Group companies’ compliance/risk

YMFG has devised standard internal audit rules for themanagement departments and checks the accuracy of thewhole Group. On the basis of these rules, the internalfinancial statements of the Group companies. The department

audit departments of each Group company verify themonitors and gives guidance and advice to the Groupappropriateness and effectiveness of internal controls andcompanies’ audit and inspection departments. On the basis

make suggestions for necessary improvements.

of their audit reports, the department reports on the internal

Further, YMFG creates the Group’s medium- to long-term
internal audit plan on the basis of its management policy andaudits of the Group to the Board of Directors.
The banks’ audit and inspection departments implement

conditions. Internal audits by the auditing bodies of eachinternal audits of branches in Japan and overseas, and reports

Group company are conducted on the basis of this plan toto YMFG and to the Board of Directors. In particular, internal

ensure their effectiveness and efficiency.

audits of front-line sales outlets are performed to verify thestatus of compliance and risk management functions andImplementation of Internal Audits

ensure their mutual effectiveness.

YMFG’s Audit and Inspection Dept. plans audit processes

Compliance System
YMFG’s Attitude toward Compliancecommittee discusses ways to create and reinforce compliance

YMFG and its Group companies share a common understanding

systems, reports the results of these deliberations to the Boardof their responsibilities to fulfill their public mission andof Directors and reflects these results in Group operations.

corporate social responsibilities. Accordingly, we accord

YMFG’s Compliance Administration Department

topmost management priority to thorough compliance, takecommunicates with compliance personnel at each Groupthe seriousness of compliance seriously and consider earningcompany and, in accordance with the deliberations of thethe trust of a broad-based society our fundamental policy.

Group Compliance Committee, ensures the appropriateness ofcompliance systems for the entire Group.

Compliance System
We have established a compliance administration department

Efforts to Prevent Money Laundering

to take overall charge of ensuring appropriate compliance

The Act on Punishment of Organized Crimes and Control offor YMFG and its Group companies. Individual companies’

Crime Proceeds and the Law for Prevention of Transfer ofcompliance departments handle the centralized management

Criminal Proceeds prescribes heightened measures to preventof compliance-related activities, including the creation ofmoney laundering. The Group’s efforts are appropriate and incompliance structures and the training of executives andconformance with these regulations, in keeping with our aim

general employees. Compliance supervisors and officers at allof maintaining society’s trust in us as a financial institution.

departments and branches foster an enhanced awareness ofSpecifically, we have formulated a policy of controls andappropriate compliance in daily operations.

procedures reasonably designed to prevent and detect money

The Group Compliance Committee, chaired by thelaundering/terrorist financing activities. We have appointed

president, acts as a deliberative body. 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.

and monitors the status of program implementation. The15YMFG Annual Report 2015