Compliance

Strengthening the Compliance Structure to Adapt to Expanding and Diversifying Business Models

SMFL is promoting various measures to ensure the compliance- first culture and to establish a compliance structure suited to the characteristics of each business so that SMFL can achieve "establishment of business foundation" under its Medium-Term Management Plan (FY2023-2025).

Our Principle

Embodying "our fundamental approach," "Our Principle" serves as the foundation for all of our business activities.

As a trusted and responsible corporate citizen committed to meeting and exceeding its customers expectations, SMFL is committed to─at all times─acting in good faith and complying with all applicable law.

Structure for Promoting Compliance

SMFL established the Compliance Committee. Chaired by Managing Executive Officer in charge of the Compliance and General Affairs Department, this Committee in principle meets twice a year and discuss various compliance-related measures.
On an organizational unit basis, each department manager is responsible for compliance. A Compliance Officer is assigned to each department to assist the general manager in ensuring that all employees are fully aware of the laws, regulations, and internal rules related to business operations.
Unit Compliance Officers are assigned to each business unit to collect and collate information on laws, regulations, and industry trends suited to the characteristics of each business unit, and to provide guidance and support to general managers and compliance officers under relevant business unit.
Unit Compliance Officers assigned to each business unit and the Compliance and General Affairs Department work together to establish procedures and a verification system to determine whether the sales activities of SMFL and the SMFL Group comply with applicable laws, regulations, and rules.

Cutting Off Relations with Antisocial Forces, and Anti-Money Laundering/ Combating the Financing of Terrorism

To eliminate transactions with antisocial forces, a Basic Policy has been formulated for the SMFL Group as a whole, and we have put in place a structure for its appropriate management. Furthermore, so as to prevent money laundering and the provision of funds Philosophy SMFL's Sustainable Growth Potential Medium-Term Management Plan and Strategies by Business Governance Data to terrorists, SMFL has formulated Money Laundering/Terrorism Financing Prevention Management Regulations as a Basic Policy for the SMFL Group as a whole. They provide the basis for operations and management in this area.

Fostering a Compliance Culture

SMFL formulates annual training plans to develop compliance culture. In FY2023, we established the "Rules of Compliance Training Management" and out in place a comprehensive PDCA cycle system that encompasses the process from planning and review of compliance training to its execution, verification, and reporting.

Training Description
Monthly compliance workshops Covers matters required by laws, regulations and Company rules, and matters to be fully notified to all employees
Compliance session Cultivates compliance responsiveness through interactive case studies
Compliance officer training Information sharing and role recognition for compliance officers appointed for each department
Level-specific training Training on the mindset for compliance for those hoping for career advancement at each level
Compliance training by business unit Compliance training suited to the characteristics of each business unit as well as related risks for product and service

Whistleblowing System

In order to self-cleanse where violations of laws or regulations are discovered and corrected at an early stage, and to protect whistleblowers, we have put in place an internal whistleblowing system that is being operated properly.
SMFL established the SMFL Alarm Line (an internal hotline) and the external SMFL Hot Line so that employees can use of its whistleblowing system for the sake of peaceful use by the whistleblower. Moreover, employees can also utilize the SMBC Group Alarm Line and the SMFG Accounting and Audit Hotline.

SMFL Alarm Line
(internal hotline)
Reportable matters:
  • Acts or facts that violate or are suspected of violating laws and regulations
  • Acts or facts that, if left unchecked, may damage the property interests or credibility of SMFL or its subsidiaries, the life, health, or property interests or credibility of customers or employees, or market order
  • Acts or facts that violate or are suspected of violating internal rules
SMFL Hotline
(external hotline)
SMBC Group Alarm Line
Description of the system:
  • Same reportable matters as with the SMFL Alarm Line. Whistleblowing hotline that employees, etc. of Group companies can use if they hesitate to report to their own company's whistleblowing system upon becoming aware of misconduct, etc. by officers or employees of their company
SMFG Accounting and Audit Hotline
Reportable matters:
  • Improper or suspected improper accounting or auditing by SMFG or SMFG consolidated subsidiaries

Formulation of Compliance Policy

SMFL formulated the Compliance Policy as the foundation for practicing "Our Principle." The Compliance Policy consists of seven policies and serves as a compass for promoting our compliance-first approach in accordance with "Our Principle."

Compliance Policy (PDF: 574KB)