Financial Services Agency

June 25, 2004 Financial Services Agency Administrative actions against Monex, Inc. 1. As a result of the inspection of Monex, Inc. by the Securities and Exchange Surveillance Commission, the following violations of laws and regulations were recognized, and a recommendation was made for administrative action (opens in a new window on June 17, 2004). . ○ Acts of not verifying the identity of transactions suspected of impersonation , despite the suspicion that the orderer of the order is pretending to be the person in the name of the transaction, the order was accepted and executed without verifying the identity. The above acts are considered to be "suspicion that the other party of the transaction is pretending to be the person in the name of the transaction or the representative, etc. It falls under the act of not verifying the identity of customers when conducting such transactions, and is deemed to violate Article 3, Paragraph 1 of the Act on Identity Verification, etc. of Customers, etc. by Financial Institutions, etc. 2. Based on the above, the following administrative actions were taken today against Monex, Inc. based on the provisions of Article 9 of the Act on Customer Identity Verification by Financial Institutions, etc. (1) Correction order ○ Correction of the violation ○ Clarification of where responsibility lies ○ Thorough awareness of legal compliance among officers and employees ○ Establishment of a customer management system including thorough identity verification and ensuring its effectiveness Regarding 1), report on the status of response by July 23, 2004, and report on the extraction of suspicious accounts and the status of implementation of measures against them every three months for the next year.