2007 REGISTRATION DOCUMENT

2 ReportCORPORATE GOVERNANCEof the Chairman of the Board of Directors on the conditions for the preparation and organisationof the work of the Board and on internal control procedures implemented by BNP Paribas< Contents >12345At entity levelThe certification procedure vis-à-vis the Group requires a suitably adaptedAccounting Internal Control system for each accounting entity that givesthe local Finance function an overview of the entire accounting process.Towards this end, Group Accounting Internal Control recommendsimplementing an “elementary certification” or “sub-certification” processfor accounting data whenever the processing of transactions and thepreparation of accounting and financial data are organised in such away that such process is necessary.This process requires that those involved in preparing accounting dataand in performing accounting controls (e.g., Middle Office, Back O ffice,Human Resources, Risk Management, Tax Department, ManagementControl/Planning, Accounts Payable, Treasury, IT Department, etc.)formally certify that the information provided is accurate and that thebasic controls designed to ensure the reliability of the accounting andfinancial data for which they are responsible are working effectively. Theelementary certificates are sent to the local Finance department, whichanalyses them, prepares a summary report and liaises with the otherplayers in order to monitor the effectiveness of the system.The FACT application also makes it possible to automate the elementarycertification process by providing entities with a dedicated environmentin which they can directly manage the processes set up at their level.Oversight arrangements for measuringfinancial instruments and determiningthe results of market transactionsThe Group Finance-Development function, which is responsible forthe production and quality of the Group’s financial statements andmanagement accounting data, delegates the production and control ofmarket values or models of financial instruments to the different playersinvolved in measuring financial instruments within the overall processof monitoring market risk and management data.Controlling these operations, which concerns all players, is theresponsibility of the Finance function.The purpose of these control procedures is as follows:■ to ensure that transactions involving financial instruments are properlyrecorded in the Group’s books in accordance with Group policies forproducing financial and management data;■ to guarantee the quality of financial instrument measurement andreporting used both in preparing the financial and managementaccounts and in managing and monitoring market and liquidityrisk;■ to ensure that the results of market transactions are determined,understood and analysed correctly;■ to control the related operational risks.67891011622007 Registration document - BNP PARIBAS