NATIXIS - 2018 Registration document and annual financial report

3 RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk management

Due to central banks31/12/2017

Liabilities (in billions of euros)

Less than 1 month

1 to 3 months

3 to 6 months

6 months to 1 year

1 to 2 years

2 to 5 years

Over 5 years

Total

Demand

Undated

Due to central banks Other financial liabilities at fair value through profit or loss o/w repurchase agreements o/w secured debt o/w unsecured debt

-

-

-

-

-

-

-

-

-

-

87

2

22

15

3

3

3

8

5

26

35

2

21

10

1

- -

- -

1 1 7

- -

- - -

1

- -

-

-

-

21

1

2

2

2

2

5

Trading derivatives Hedging derivatives

60

- -

- -

- -

- -

- -

- -

- -

- -

60

1

1

Due to banks o/w repurchase agreements

105

13

27

17

5

14

6

20

3

-

20 96 33

5

7

6

1 4 6

1 6 9

-

- -

-

-

Customer deposits

27

40

11 10

1 1

2

5

Debt securities

- - -

6

1 1 3

- -

- - -

o/w covered bonds Subordinated debt

1 4

- -

- -

- -

- -

- -

1

TOTAL

385

42

96

54

18

31

11

31

10

92

The information contained in the above table excludes insurance activities.

COMPLIANCE RISK 3.2.8

data protection regulation, the Natixis Code of Conduct, professional ethics, the French law on the separation and regulation of banking activities and the Volcker Rule. More than 107,000 training or awareness-raising initiatives were carried out, through classroom training or e-learning. The Compliance Department is responsible for coordinating first-level permanent controls of compliance risks. It sets up and implements second-level permanent controls to ensure that procedures are applied within the business lines and that compliance risks are mitigated, as part of a risk-based approach (see 3.2 Organization of Natixis’ internal control system) . To this end, the Compliance Department maps compliance risks and ensures the resolution of anomalies detected by the relevant business lines. The Compliance Department reports to the members of Natixis’ Senior Management Committee and the Board of Directors (Risk Committee) on the main risks detected, and on the implementation and effectiveness of the measures to address these risks. It helps draft the reports required by regulators and acts in accordance with the rules set out by Groupe BPCE. Functional structure The Compliance Department reports to the Corporate Secretary and functions independently of the operational departments. At Natixis S.A. level, the compliance managers of the business lines report hierarchically to Natixis’ Chief Compliance Officer. There is a direct reporting line between Natixis’ Chief Compliance Officer and the subsidiary compliance managers, and a strong functional link with the branch compliance managers (particularly for prior approval of the reporting line, appointment or withdrawal of subsidiary compliance managers, participation in annual performance and career advancement appraisals, approval of annual work plans, and with respect to the duty to alert and report to the Compliance Department).

See 3.2.2 Governance and risk management system—Risk typology for a definition of compliance risk

Organization of the Compliance 3.2.8.1 Department The Compliance Department oversees compliance risk prevention and mitigation measures, as well as corruption prevention measures. It also oversees IT Systems Security (including personal data protection) and business continuity. Its scope of action encompasses Natixis and its subsidiaries and branches in France and abroad, thanks to its functional structure. Responsibilities The Compliance Department advises and assists all Natixis employees on how to prevent compliance risks when performing their duties. It plays a key role in implementing the principles set out in the Natixis Code of Conduct (see 6.2 The Code of Conduct and its implementation) , which are also included, as regards compliance, in the Compliance Manual. Accordingly, the Compliance Department participates in establishing standards, policies and procedures, and issues its opinion, particularly regarding supervision of new business, products and organizations. It also performs a regulatory watch and works with the Human Resources Department on staff training. In 2018, the Compliance Department continued to step up its training and awareness-raising initiatives covering the many changes to the regulations in areas such as the prevention of money laundering and terrorist financing, the prevention of corruption, the general

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Natixis Registration Document 2018

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