Promoting the compliance system

Prioritizing a customer first policy and thorough compliance, AIFUL promotes various initiatives to enhance its compliance system so that it can satisfy the expectations of its stakeholders and earn the support of society.

Organizational system

As an internal system for promoting compliance, AIFUL has established a corporate philosophy, conduct guidelines, and rules related to the thorough enforcement of compliance. It also issues the AIFUL Group Handbook as well as developing and managing compliance programs including a hotline and the Compliance Committee, which includes external members. It also considers various measures to improve the internal control system and carries out preventive measures.

To reinforce these activities, the Group has installed Three Lines Model. The first line is on-site monitoring through self-inspection and the establishment of a Compliance Office in business divisions. The second line is internal control such as awareness-raising, education, and follow-ups by the Corporate Risk Management Department, the division in charge of controlling compliance. The third line is corrective measures determined based on appropriateness and effectiveness as evaluated in internal audits of the entire Group, including group companies and overseas subsidiaries, by the independent Group Internal Auditing Department.

Internal Auditing

Internal Auditing Department conducts risk assessment based on an external environment surrounding the Group, business type of each Group company, and operational status of each department, verifies maintenance and operation status of business processes in high-risk areas, and conducts regular audits of sales branches, headquarters, and Group companies as well as cross-departmental theme audit.

Aiming to ensure compliance, Internal Auditing Department audits the status of initiatives to comply with the following laws and regulations.

• Money Lending Business Act
• Installment Sales Act
• Payment Services Act
• Act on Special Measures Concerning Claim Management and Collection Business
• Act on the Protection of Personal Information
• Act on Prevention of Transfer of Criminal Proceeds
• Labor Standards Act
• Fire Services Act, etc.

In addition to the above internal auditing, all employees inspect operations of their own departments through semi-annual self-inspections, which include items on compliance with the Money Lending Business Act, the Company's rules on protection of personal information, rules on outsourcing, and rules on prevention of damage caused by anti-social forces.