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 >This permanent control process uses first- and second-level controls inaccordance with Group Internal Control Charter guidelines and existsat each level in the organisation, i.e., Group, Corporate and InvestmentBanking and in the main territories that record market transactions intheir accounts.Finance departments perform second-level controls and have visibilityover the entire process via dedicated Financial Control teams. They decideon the information that must be reported by the various players: thiscomprises both quantitative and qualitative data indicating trendsin different businesses as well as the results and quality of upstreamcontrols carried out.Committees that meet on a monthly basis are gradually being set upto bring all of the players together to discuss the entire range of issuesconcerning the measurement and recognition of market transactions.As part of the quarterly accounts closing process, the Corporate andInvestment Banking Finance department reports back to a committeechaired by the Group Chief Financial Officer on the actions of the FinancialControl teams and their work to enhance control effectiveness and thereliability of the measurement and recognition of the results of markettransactions. This Committee meets every quarter and brings together themain players from Group Finance-Development-Accounting, CorporateInvestment Banking and Group Risk Management.PERIODIC CONTROL – CENTRAL ACCOUNTINGINSPECTION TEAMThe General Inspection unit includes a team of inspectors (the CentralAccounting Inspection Team) specialised in financial audits. This reflectsthe strategy of strengthening the Group’s internal audit capability bothin terms of technical scope and the areas of accounting risk tackled inthe audit engagements undertaken.Its action plan is based on the remote accounting internal control toolsavailable to the Group-Finance Development function and the riskevaluation chart set up by the General Inspection unit.The core aims of the team are as follows:■ to constitute a hub of accounting and financial expertise in order toreinforce the capability of the General Inspection unit when carryingout inspections in such areas;■ to disseminate internal audit best practices and standardise the qualityof audit work throughout the BNP Paribas Group;■ to identify and inspect areas of accounting risk at Group level.DEVELOPMENT OF THE ACCOUNTINGINTERNAL CONTROL SYSTEMThe Accounting Internal Control system is constantly being adapted tothe Group’s requirements. The aforementioned procedures form part ofan evolving system that aims to guarantee an adequate level of controlthroughout the Group.RELATIONS WITH THE GROUP’S STATUTORYAUDITORSEach year, the Statutory Auditors issue a report in which they give theiropinion concerning the fairness of the consolidated financial statementsof the BNP Paribas Group as well as the annual financial statements ofthe Group’s subsidiaries.The Statutory Auditors also carry out limited reviews on the quarterlyaccounts close. As part of their statutory audit assignment:■ they examine any significant changes in accounting standards andpresent their recommendations concerning choices with a materialimpact to the Financial Statements Committee;■ they present the entity/business line/core business Finance functionswith their findings, observations and recommendations for thepurpose of improving certain aspects of the Internal Control systemfor the preparation of accounting and financial information, reviewedin the course of their audit.The Financial Statements Committee of the Board of Directors briefedconcerning accounting choices that have material impact, as discussedin the paragraph “Corporate Governance” section above.Following up and implementing the recommendations of the StatutoryAuditors in respect of the Internal Control system is the responsibilityof the BNP Paribas Group Finance-Development function. The Heads ofFinance departments use the dedicated FACT application, which facilitatesthe implementation of the Statutory Auditors’ recommendations.CORPORATE COMMUNICATIONS – PRESSRELEASES, SPECIAL PRESENTATIONS, ETC.Financial reports are prepared for external publication by the InvestorRelations and Financial Communications team, within the GroupFinance-Development function, for the purpose of presenting the Group’sdifferent activities, explaining its financial results and providing details ofits development strategy to shareholders, institutional investors, analystsand rating agencies. The team, which reports to Executive Managementand the Chief Financial Officer, devises the format in which financialinformation is published by the BNP Paribas Group. The team liaiseswith the core businesses and functions when designing the presentationof the Group’s results, strategic projects and special presentations forexternal publication.Due to the growing demands of investors and the Group’s determinationto be at the leading edge of European corporate communications, BNPParibas has adopted a detailed communications format designed topresent its results to the financial markets on a quarterly basis.12345678910112007 Registration document - BNP PARIBAS 63