Legal Violations and Internal Control Failures
First written in FY2017. 5 of 8 entries say "Materialised", first in FY2020. Latest entry: FY2026.
AEON Financial Service moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2025: 6 of 34 companies on the "Worse" side.
9 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「We recognise strengthening governance, including risk management and compliance at the Company and across the Group, as our highest priority. Under this medium-term management plan, we position stronger corporate governance as a prerequisite for supporting corporate growth and will establish “Safety and Security No. 1” by achieving robust corporate governance.」
In light of corrections to prior-year financial results and business improvement orders issued to subsidiaries, the new plan positions addressing internal control failures as its highest priority under “Safety and Security No. 1.” - 2026-05-08MaterialisedGeneral Meetings of Shareholders
「During the fiscal year, in light of the discovery that improper accounting had been conducted before the acquisition of an interest in a Vietnamese finance company that became our consolidated subsidiary, we determined that deficiencies in the design and operation of certain aspects of company-wide internal controls, including risk assessment, and the financial closing and financial reporting processes constituted material weaknesses requiring disclosure. Accordingly, on 31 July 2025, we submitted an amended internal control report to the Director-General of the Kanto Local Finance Bureau.」
The company states that, following improper accounting at its Vietnamese subsidiary, it recognized material weaknesses in company-wide internal controls and the financial closing and financial reporting processes. - FY2025MaterialisedAnnual report
「On 26 December 2024, Aeon Bank received a business improvement order from the Financial Services Agency concerning its framework for managing money laundering and terrorist financing.」
The Financial Services Agency issued a business improvement order concerning Aeon Bank's AML/CFT management framework, and the bank has submitted a business improvement plan, reported on its progress and strengthened the management framework. - FY2024MitigatedAnnual report
「We have rebuilt the company's governance structure and strengthened its management and supervision. We have also deepened our cooperation with external experts, periodically receiving their views on the initiatives under the business improvement plan, and have made steady progress toward rebuilding the company's internal control system.」
Regarding Aeon Product Finance, which received a business improvement order, the disclosure states that steady improvements were made through the rebuilding of its governance structure, stronger management and supervision, and cooperation with external experts. - FY2023-Q1MitigatedAnnual report
「The subsidiary イオンプロダクトファイナンス株式会社 received a business improvement order under the Installment Sales Act from the Kanto Bureau of Economy, Trade and Industry on 15 April 2022 and submitted a business improvement report in June. We take this action seriously, sincerely reflect on it, and will work to strengthen legal compliance throughout the Group and thoroughly prevent recurrence.」
After the business improvement order, a business improvement report was submitted, and efforts are under way to strengthen legal compliance across the Group and prevent recurrence. The disclosure does not state that the problem has been resolved. - FY2022MaterialisedAnnual report
「We take the action taken on this occasion very seriously and sincerely reflect on it. To prevent recurrence, we will renew the company's management structure, rebuild its compliance framework through a fundamental review of its business operating structure, and work to protect customers' interests and ensure thorough compliance with laws and regulations.」
Following a business improvement order issued to the subsidiary, the disclosure describes the violation of laws and regulations and the failure of internal controls as events that actually occurred, and sets out measures to prevent recurrence and rebuild the relevant framework. - FY2020MaterialisedAnnual report
「We take these events very seriously and sincerely reflect on them. We will return to our management principle of putting customers first and, as a group, work to develop measures to prevent recurrence and strengthen internal controls.」
The disclosure states that risks relating to legal compliance and internal controls have materialised, following inappropriate accounting, administrative guidance concerning the handling of personal information, and an order for corrective measures concerning advertising representations. - FY2017First statedAnnual report
「The Group is working to ensure compliance with laws, regulations and other applicable rules, including by thoroughly implementing compliance measures for its officers and employees, but such measures may not always function effectively. If a violation of laws or regulations occurs, the Group's operations, results and financial position may be affected by regulatory action or a loss of confidence in the Group, among other consequences.」
The disclosure expressly identifies, separately from the existence of compliance measures, the risk that those measures may fail to function adequately and violations of laws or regulations may occur.