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Enhancement of Compliance Framework

We adhere to our core policy of maintaining sustained growth and a sound financial base through business management from a long-term perspective. Our policy also calls for the timely and accurate disclosure of information, and consistently maintaining sound relationships with our customers and other stakeholders.

Full enforcement of compliance

Positioning the full enforcement of compliance as one of its most important issues, SMBC Consumer Finance does not simply comply with laws and regulations, but works to ensure that its conduct is in line with social norms and widely supported by society. To that end, we work to enhance and strengthen our preparedness in compliance through the development of company regulations and organizational structure, in-house education, and ongoing awareness building activities.
Our organizational structure for compliance consists of the Risk Management Department, which serves as a compliance supervisory department, a compliance promotion section and a compliance officer in each department. They all work together to maintain the appropriate compliance system. The Internal Audit Department, the Global Internal Audit Department and the Inspection Department also audit these systems and activities regularly from an independent standpoint to check their appropriacy.
We have also set up a compliance service both inside and outside the Company to enhance the self-cleaning function through the early detection and correction of violations of laws and regulations. This service also helps to reinforce the whistleblowing system under the Whistleblower Protection Act.

Response to antisocial forces

We have organized our preparedness for severing all relationships with antisocial forces by establishing a basic policy on how to deal with these forces. We have established the Basic Policy on the Exclusion of Antisocial Forces to sever and eliminate relationships with antisocial forces in a determined attitude, maintain public confidence in SMBC Consumer Finance, ensure businesses are run appropriately, and prevent damage caused by antisocial forces.

<Basic Policies>

1.We will hold no relationships with antisocial forces.
2.We will deal with antisocial forces appropriately in an organized manner by cooperating with the police, the National Center for Removal of Criminal Organization, lawyers, and other external agencies.
3.We will not comply with undue claims from antisocial forces, and will resolutely take a legal action against these claims.
4.We will refuse to provide funds to antisocial forces and engage in secret transactions with them.
5.We will ensure the safety of employees and protect them from the undue claims of antisocial forces.

Countermeasures against money laundering and terrorism financing

We are taking steps to prevent the violation of regulations on money laundering and terrorism financing based on requests from international organizations such as FATF* and countries concerned, as well as laws and regulations in Japan and other countries, to secure appropriate business operations.

*An abbreviation for the Financial Action Task Force.

Conducting fair transactions

SMBC Consumer Finance maintains an open attitude when selecting business and retail partners and establishing new trading relationships. To ensure the development and maintenance of sound relationships, we have established guidelines to regulate our operations related to the selection of trading counterparties. Based on these guidelines, we determine trading counterparties by fairly comparing their prices, quality, services, and other related conditions in light of factors such as the content of their business and financial performance. This allows us to conduct business in a sincere manner with our business partners.

BCP (Business Continuity Plan)

We have established procedures in relation to emergency measures, in order to respond promptly and appropriately in the event of an emergency such as natural disasters. In addition, we have formulated a BCP (Business Continuity Plan) to ensure business continuity and early recovery from such events. We conduct ‘BCP Training’ on a regular basis, including various trainings on initial response and other measures upon large-scale disasters (earthquake, etc.). Through these on-going trainings, issues are identified and improvements considered to enhance our emergency response system.

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