Groupama // Universal Registration Document 2022

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ADDITIONAL INFORMATION Regulatory environment

The forthcoming adoption of the European regulation on artificial intelligence, which has some similarities with the GDPR, will require a specific assessment of processing operations involving algorithms and falling within the framework of artificial intelligence from the perspective of personal data protection and, in particular, on the aspects of explicit determination of the purposes of processing and automated decision making.

8.3.5 The Group’s regulated companies, including insurance companies, are subject to obligations to assess their ML/FT risks, conduct customer due diligence measures, and report suspicious transactions. They must be equipped with appropriate tools and control mechanisms as well as sufficient physical and human resources to enable these obligations to be effectively implemented. The system of supervision and sanctions for regulated professionals has been strengthened. In France, the ACPR is responsible for monitoring compliance with these obligations for the financial sector and has the power to impose sanctions. In addition to the national accounting standards to which each of the Group’s entities is subject, the Group has applied since 2005 for the preparation of the combined financial statements the provisions of the International Financial Reporting Standards (IFRS) and the interpretations applicable to the closing of accounts as adopted by the European Union. The main methods of their application by Groupama Assurances Mutuelles are described in the notes to the combined financial statements (see paragraph 7.1.6 ‑ point 2 of this Universal Registration Document). The combined financial statements relate to Groupama group and include all local mutuals, regional mutuals, Groupama Assurances Mutuelles, and its subsidiaries. Subsidiaries, joint ventures, and related companies of the consolidation scope are consolidated within the scope in accordance with the provisions of IFRS 10, IFRS 11, and IAS 28. However, no IFRS standard specifically deals with the methods for aggregating the financial statements of entities forming the Mutual Insurance Division (local mutuals and regional mutuals). The Group has therefore adopted the combination rules defined in Title II of Book III of Regulation no 2020 ‑ 01 of the French Accounting Standards Authority relating to the specific provisions of the combined financial statements of insurance companies. The IFRS 17 standard on insurance contracts was adopted in November 2021 by the European Union with, in relation to the provisions of the standard and its amendments published by the IASB in May 2017 and June 2020, an optional exemption from the requirement for annual cohorts in certain specific cases. With effect from 1 January 2023 (with a mandatory comparative year in 2022), its provisions will replace those applied under the IFRS 4 standard, which is currently in force. IFRS 17 will significantly modify current accounting practices for insurance policies. ACCOUNTING STANDARDS

ANTI ‑ MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM

8.3.4

The EU financial system is subject to specific obligations to combat money laundering and terrorist financing (AML/CFT). At the EU level, these obligations have resulted from five successive directives since 1991. The Directive of 30 May 2018 amending the Directive of 20 May 2015 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing, known as the “Fifth Directive”, was transposed by the order of 12 February 2020. It strengthens and complements the existing system and the obligations imposed on regulated professionals. A decree of 6 January 2021 on the AML/CFT system and internal control, the freezing of assets and the prohibition on making funds or economic resources available or using them, clarifies and supplements the applicable regulations, particularly with regard to the organisation and implementation of internal control of the system. Provisions are also applicable with regard to the freezing of assets and the prohibition of the provision of funds or economic resources. The AML/CFT systems of international subsidiaries may vary according to national legislation and, for those established in the European Union, according to the transposition of the directives on the subject. In groups, French regulations require parent companies to define at the Group level an internal organisation and procedures taking into account the assessment of money laundering and terrorist financing (ML/FT) risks and to ensure that this organisation and these procedures are deployed by their international subsidiaries, taking into account their specific characteristics and the ML/FT risks to which they are exposed.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES