Banken for en verden i endring The bank for a ... - BNP Paribas

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Banken for en verden i endring The bank for a ... - BNP Paribas

• report of the Chairman

Internal Control

The information below concerning the Group’s

Internal Control system has been provided by

Executive Management. The Chief Executive

Officer is responsible for Internal Control systems

and procedures, and for all the statutory

information in the report on Internal Control.

INTERNAL CONTROL ENVIRONmENT

Controls within the French banking sector are

governed by a wide range of laws and regulations,

which have created a long-established

internal control culture within the Bank’s business

lines.

The conditions for the implementation and

monitoring of Internal Control within banks and

investment firms are set out in CRBF Regulation

97-02 (1) . These rules lay down principles relating

to control systems for transactions and internal

procedures, accounting systems and information

processing, risk and performance meas-

(1) Amended by Regulations 2001-01 and 2004-02 and the Decree of 31 March 2005.

urement systems, risk supervision and control

systems, and Internal Control documentation

and reporting systems. Under Article 42 of this

Regulation, banks are required to prepare an

annual statutory report on Internal Control.

As required by Regulation 97-02, BNP Paribas

has set up an Internal Control system (referred

to hereafter as Internal Control) in which distinct

organisations and managers are in charge of

Permanent Controls and Periodic Controls.

The Internal Control system must also take into

account, as appropriate, the General Regulation

of AMF (French Financial Markets Authority),

regulations applicable to branches and subsidiaries

outside France and to specialised

operations such as portfolio management and

insurance, the most widely accepted industry

practices in this area and the recommendations

of the Basel Committee.

dEfINITION ANd OBjECTIVES

Of INTERNAL CONTROL

The Executive Management of the BNP Paribas

Group has set up an Internal Control system

whose main aim is to ensure overall control of

risks and provide reasonable assurance that the

Bank’s goals in this area have been met.

This system is defined in the Group’s Internal

Control Charter, which is widely distributed

within the Group and freely available to all

Group employees. It defines Internal Control as

a mechanism for ensuring:

• the effectiveness and quality of the Group’s

internal operations;

• the reliability of internal and external information

(particularly accounting and financial

information),

• the security of transactions;

• compliance with applicable laws, regulations

and internal policies.

169

CORPORATE GOvERNANCE

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