2007 REGISTRATION DOCUMENT

CORPORATE GOVERNANCEReport of the Chairman of the Board of Directors on the conditions for the preparation and organisation 2of the work of the Board and on internal control procedures implemented by BNP Paribas< Contents >Management data: management information is reported on a monthlybasis by each entity and business line to the Finance function of therelevant core business, which then reports consolidated data for the corebusiness to the Budget and Strategic Management Control unit withinthe Group Finance-Development function.For each entity and core business, a reconciliation is performed betweenthe main income and expense items based on management data andthe profit and loss account intermediate balances, prior to submittingthe package to the Group reporting system. This is supplemented by anoverall reconciliation performed by the Group Finance-Developmentfunction to ensure consistency between consolidated accounting profitsand management reporting profits. These two reconciliations form part ofthe procedure for ensuring reliable accounting and management data.Accounting Internal Control within the GroupFinance-Development functionAs part of its role in controlling accounting risks centrally, the GroupFinance-Development function has combined the teams from “GroupAccounting Internal Control” and “BNP Paribas SA (France) PermanentAccounting Internal Control” into a single unit known as “PermanentAccounting Internal Control”.The “Group Accounting Internal Control” team has the following keyresponsibilities:■ overseeing the creation of an Accounting Internal Control systemand defining Group policy in this area, as well as ensuring the correctfunctioning of an accounting internal control environment withinthe Group, in particular through the internal certification proceduredescribed below;■ monitoring implementation by the entities of the Statutory Auditors’recommendations in conjunction with the core businesses/businesslines;■ reporting back to Executive Management and the Financial StatementsCommittee of the Board of Directors on the quality of the financialstatements being produced within the Group.The “BNP Paribas SA (France) Permanent Accounting Internal Control”team is in charge of providing quality control on accounting informationprovided by the French Retail Banking network and by Corporate andInvestment Banking businesses that report to BNP Paribas SA (France).The team has the following key responsibilities:■ monitoring the control of accounting processes, systems andprocedures by Back offices;■ liaising between the main Back O ffices and the Group Accountingd epartment;■ coordinating accounts closing processes and training Back O fficeteams in accounting controls;■ validating on a quarterly basis the “elementary certification process”(described below) for the accounting quality of Back O ffices;■ setting up ongoing cross-functional controls that validate first-levelcontrols carried out by the Back O ffices.Internal certification processAt Group levelThe Group Finance-Development function has introduced a processof internal certification of quarterly data produced by the differentaccounting entities, as well as of the controls performed withinFinance departments of the core businesses/business lines and by theConsolidation d epartment within the Group Finance-Developmentfunction. The process uses the FACT (Finance Accounting Control Tool)internet/intranet-based application.The Heads of Finance of the entities concerned certify to Group Finance-Development that:■ the accounting data reported to the Group Finance-Developmentfunction are reliable and comply with Group accounting policies;■ the Accounting Internal Control system designed to ensure the qualityof accounting data is operating effectively.This internal certification process forms part of the overall GroupAccounting Internal Control monitoring system and enables the GroupFinance-Development function, which has overall responsibility for thepreparation and quality of the Group’s consolidated financial statements,to detect any problems in the financial statements and to monitor theimplementation by the accounting entities of appropriate correctivemeasures and, if necessary, to set aside appropriate provisions. A reporton this procedure is presented to the Financial Statements Committee ofthe Board of Directors at the close of the Group’s quarterly consolidatedaccounts.12345678910112007 Registration document - BNP PARIBAS 61