Anti-Money Laundering Policy

 

Hokuhoku Financial Group, Inc. and our group companies*1 (hereinafter referred to as "Hokuhoku FG") recognizes the importance of anti-money laundering and combating the financing of terrorism (hereinafter referred to as "AML/CFT*2"), and hereby establishes AML/CFT policy as follows.

1.Organizational Structure and Operation Policy

Hokuhoku FG recognizes prevention of Money Laundering and the Terrorist Financing(hereinafter referred to as “ML/TF”) as one of critical management tasks and establishes under the proactive involvement of management, organizational structure to prevent  ML/TF, and clarifies the roles of executives and employees. The relevant departments collaborate to collect information on ML/TF and exercise appropriate measures on the issue.

2.Risk-Based Approach

For the purpose of ML/TF prevention, Hokuhoku FG identifies and assesses current ML/TF risks in a timely and appropriate manner and implements risk mitigation measures following the risk-based approach.

3.Customer due diligence (CDD)

Hokuhoku FG properly investigates and verifies customer information and transaction details based on laws and regulations with continuous CDD.

4.Reporting of Suspicious Transactions

If transaction is determined as suspicious, Hokuhoku FG promptly submits Suspicious Transaction Reports to relevant authorities.

5.Management of Correspondent Banking

Hokuhoku FG collects sufficient information from Correspondent Banks and implements ML/TF measures in a timely manner.

6.Training for executives and employees

Hokuhoku FG  continuously conducts training related to AML/CFT  to improve knowledge and awareness of executives and employees.

7.Audit for the Status of Compliance

Independent auditors  regularly audit the effectiveness of the AML/CFT framework.  Based on the results,  Hokuhoku FG constantly applies efforts for its further improvement.

 

(* 1) Group companies subject to the policy

The Hokuriku Bank,Ltd.

The Hokkaido Bank,Ltd.

Hokuhoku Tokai Tokyo Securities Co.,Ltd.

Hokugin Lease Co.,Ltd.

Hokuriku Card Co.,Ltd.

Hokuhoku Capital Co.,Ltd.

Dogin Card Co.,Ltd.

(* 2) Money laundering refers to "act of disguising the source of revenue obtained by crime and disguising it not to be criminal profit", and terrorist financing refers to "act of providing terrorists with necessary funds for execution". Neglect of money laundering allows criminal earnings to be used for future criminal activities and will let criminal organizations dominate legitimate economic activities. Therefore, preventing money laundering  is an important issue domestically and globally. Furthermore, money laundering has become internationalized, sophisticated and complicated in recent years, and world-wide cooperation is strongly required to prevent it.

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Anti-Money Laundering Policy