Annual Report 2010 - ProCredit Bank

NRA process does management give its approval
for the innovation to go ahead.
The bank’s Business Continuity Policy ensures
that the bank can maintain or restore its operations
in a timely manner in the event of a serious
disruption. As well as defining the steps to be
taken to restore normal operations, the bank’s
Business Continuity Plan specifies the procedure
for moving critical operations to temporary locations,
the resources that need to be mobilised in
each type of case and the expected cost of disruptions
in specific areas. It also offers guidance
on avoiding disruption in the first place.
Anti-Money Laundering
ProCredit Bank Romania fully endorses the fight
against money laundering and terrorist financing,
and has implemented the Group Anti-Money
Laundering Policy, which is consistent with the
requirements of German and EU legislation. No
customer is accepted and no transaction is executed
unless the bank understands and agrees to
the underlying purpose of the business relationship.
The Group Anti-Money Laundering Department
(Group AML) conducts an annual survey of
all ProCredit banks and updates the group policy
accordingly. In addition, all ProCredit banks submit
quarterly reports on their AML activities to
Group AML.
At ProCredit Bank Romania, responsibility for
AML activities is exercised by the Compliance
Department. According to local regulations, any
transaction (or any series of transactions within
10 days) exceeding the RON or foreign currency
equivalent of EUR 15,000 must be reported to
the local authorities. In addition, any account
activity or attempt to execute a transaction that
arouses suspicion of money laundering, terrorist
financing or some other criminal activity must be
reported. Front-office staff receive intensive training
in how to recognise suspicious transactions.
An additional automated safeguard is provided
by the use of three modules of the AML software
manufactured by Tonbeller AG: Siron Embargo,
Siron PEP and Siron AML. In cases of doubt, the
AML&CFT Subcommittee takes the final decision
on how to handle the suspicious transactions and
suspicious customers reported by the bank.
Capital Adequacy
The bank’s capital adequacy is calculated on a
monthly basis and reported both to the management
and to the Risk Management Committee,
together with rolling forecasts to ensure future
compliance with capital adequacy requirements.
Strong support from our shareholders once
again enabled the bank to maintain a comfortable
capital cushion. During 2010 it received a
total paid-in capital increase of EUR 5.0 million.
At year-end 2010 the IFRS/Basel II capital adequacy
ratio for the bank stood at 16.6%; this
is above the group-wide target of 12%, which
is also the IFRS minimum level required locally.
The bank was issued a rating of BB+ by Fitch
in 2010.
Risk Management 27