The Bank regards compliance with applicable laws and societal norms as a fundamental prerequisite to earning the trust of society. Aware of the importance of its public mission and the significance of its societal responsibilities, the Bank has developed the following initiatives to ensure compliance.
In order to allow each employee in charge of real operations to have strong awareness of and knowledge base for pursing compliance, Seven Bank has in place the following system so that the compliance check can appropriately function at each division to ensure the thorough compliance across the Bank.
Seven Bank has established Compliance Committee as an advisory organization to the Executive Committee which confirms and verifies the status of compliance related to operations in general, and considers measures concerning compliance, so as to further enhance and improve the compliance system. The Compliance Committee has functions to consider responses to compliance-related problems and issues, material compliance violations, etc., and countermeasures therefor. The Committee reports, considers, and evaluates important compliance-related matters which should be treated as management issues.
Major Agendas of Compliance Committee in FY2022
- 1. Results and plans of compliance program
- 2. Operation of the compliance consultation system
- 3. Revision of Compliance Manual
- 4. Response for customer protection
- 5. Responses to financial crimes and antisocial groups
- 6. Management of outsourcing contractors
The Bank establishes a compliance program each fiscal year that sets out the compliance implementation plan for that year. The Board of Directors reviews and evaluates the progress and implementation status of the compliance program for the relevant year and, using such reviews and evaluations, formulates a compliance program for the following fiscal year.
|Improving the effectiveness of the information management structure
|Anti Money Laundering/Countering the Financing of Terrorism (AML/CFT)
Sophisticating the AML/CFT management structure based on the Criminal Proceeds Transfer Prevention Act*1 and the Foreign Exchange Act*2
|Foreign Account Tax Compliance Act (FATCA)
|Accurate annual FATCA reporting
|Management of outsourcing contractors
|Improving the effectiveness of the outsourcing contractor management structure
|Harassment prevention measures
|Proper implementation of harassment prevention measures
Main Compliance Issues
Prevention of Money Laundering and Financial Crimes, and Measures against Antisocial Groups
Seven Bank determined the policy for countermeasures for money laundering and provision of terrorist fund. In addition, through strict confirmation at transactions, etc., the Bank has put emphasis on eliminating relationships with antisocial groups and preventing fraudulent accounts from being opened.
To be more specific, among other steps, the Bank asks applicants opening accounts to sign an affidavit stating they are not associated with antisocial forces. By including provisions that explicitly indicate the exclusion of organized crime groups in the transaction rules and other clauses, the Bank rejects the account application and closes the account upon finding that the customer falls under or is associated with antisocial forces.
In addition, the Bank has established a structure to ensure it can take appropriate actions in an organized manner against wrongful demands and other similar events in accordance with internal rules and regulations.
Compliance Consultation System
The Bank has established a Compliance Consultation System to identify and address compliance issues early, and prevent reoccurrences. The system provides
contact points for both internal and external consultation and reporting.
As contact points for employees seeking consultations or reporting issues, employees can consult the compliance officer in their divisions. In addition, the Compliance Consultation Desk within the Bank and the Groupwide Help Line (a consultation and reporting contact point for all Seven & i Group companies) outside the Bank have been established. Posters with contact information have been put up and booklets with contact information have been distributed to all employees to ensure their awareness of these contact points. The International Hotline has also been established for employees of foreign subsidiaries as a point of contact for consultations in local languages.
In addition, to promote fair transactions and provide safe and secure services for customers, a Suppliers’ Help Line (a consultation and reporting contact point for all Seven & i Group companies) has been established for suppliers.