The Directors are responsible for ensuring that management design, maintain and improve a system of internal control and for reviewing its effectiveness.  The Bank has operated such a system of internal control, which provides reasonable assurance of effective and efficient operations covering all financial and operational controls and compliance with laws and regulations.

The Bank’s internal control system is built upon the principle of segregation of duties among departments, on one hand, and between decision-making, execution and control functions, on the other hand.   Standardisation of operational procedures and collegial decision-making in cases of higher-risk transactions are also vital components of the Bank’s internal control system.  The system is fully compliant with the regulations of the Central Bank of the Russian Federation and ensures adequate presentation of the Bank’s affairs in its financial statements.

The effectiveness of controls is periodically reviewed within the business areas by the Internal Control Service, which is the Bank’s unit responsible for the day-to-day execution of the internal control function.