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Internal control
Internal Control Aresbank

As part of internal control, Aresbank has an Internal Audit Department that reports functionally to the Audit Committee of the Board of Directors and a Global Risk Control Department (CRO) that reports functionally to the Risk and Compliance and Technology Committee of the Board of Directors. Aresbank also has an Internal Control Body and special units within the Global Risk Control Department (CRO), but functionally independent to ensure compliance with the regulations established in the areas of Prevention of Money Laundering and Financing of Terrorism, Data Protection and Customer Service, which reports functionally to the Risk and Compliance and Technology Committee of the Board of Directors.

01 Audit Committee

The Committee supervises compliance with current legislation as well as the strategies and policies designed by the Bank in all matters relating to internal control and auditing systems.

02 Risk, Compliance and Technology Committee

The Committee oversees compliance with current legislation as well as the Bank’s strategies and policies on risk, compliance and technology.

03 Internal Audit Department

The Department provides independent assurance on the quality and effectiveness of the Bank’s internal control, risk management and governance systems and processes, assisting the Board of Directors and General Management in protecting the organisation and its reputation.

The department manages the legal aspects, mainly of a civil and commercial nature, affecting the Bank.

05 Global Risk Control Department (CRO)

The department is responsible for establishing credit risk policies, standards and methodologies for approval, measurement, reporting, monitoring, limit setting and risk analysis. It is also responsible for the preparation of risk reports such as ICAAP, Pillar III, automated reporting to CIRBE, monitoring of the Risk Appetite Framework and indicators of the cooperative Recovery Plan, etc.

06 Internal control body

Analyses, controls and communicates everything related to transactions or events suspected of being related to money laundering and terrorist financing, while proposing control improvements to ensure prevention.

Every year, Aresbank undergoes an independent review by an external auditing company in order to assess that the information on equity, the financial situation and the results expressed are in accordance with the regulatory framework applied to the entity, enabling the preparation of annual accounts free of material misstatement, whether due to fraud or error. In making those assessments, the auditor considers internal control in order to express an opinion on its effectiveness and to provide an assessment of the appropriateness of the accounting policies applied.

Aresbank follows the accounting principles established by the Bank of Spain in its Circular 4/2004, and its subsequent amendments, and by the Commercial Code, Royal Legislative Decree 1/2010 of 2 July, and any other applicable Spanish legislation in order to give a true and fair view of its net worth and financial position.

With regard to administrative and accounting procedures, the Bank has policies and procedures duly supported by IT systems in such a way as to minimise operational risk and make it possible to obtain the accounts and details deemed necessary for the preparation of the financial statements and other supplementary information statements required by the regulations in force.

07 These procedures are mainly based on:

  • The correct recording and accounting of the transactions executed and a description of the controls implemented to validate the operations.
  • Mechanisms for confirming contracted transactions.
  • Mechanisms for the control of settlements.
  • Correct recording of customer funds.
  • Correct valuation and classification of financial assets and liabilities.
  • Systematic reconciliations.
  • Enabling the safeguarding, filing and access to supporting documentation.
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