Internal controls at NSD are implemented to ensure that NSD (its management bodies, business units, and employees) pursue the following objectives:
- Ensuring the effectiveness and efficiency of NSD's financial and business operations and other transactions, the effectiveness of asset and liability management (including protection of assets), and the effectiveness of risk management;
- Ensuring the accuracy, completeness, objectivity, and timely preparation and submission of financial statements and accounting, statistical, or other reports (intended for external or internal users);
- Maintaining NSD's information security (protection of NSD's interests (objectives) in the information sphere defined as the totality of information, IT infrastructure, persons responsible for data collection, generation, dissemination, and use, and the framework of regulation of resulting relations;
- Ensuring compliance with laws and regulations, self-regulatory organizations’ standards (applicable to professional securities market participants), and NSD’s constituent documents and internal regulations; and
- Preventing NSD’s or its employees’ involvement in illegal activities (including money laundering and terrorist financing), and ensuring that relevant information is reported to Russian governmental authorities and the Bank of Russia in a timely fashion in accordance with the Russian laws and regulations.
NSD's internal control system is a framework of bodies and internal controls that ensure compliance at NSD and the achievement by NSD of the objectives set out in the Russian laws and regulations, Articles of Association, and NSD's internal regulations adopted in accordance with the Russian laws and regulations.
The internal control system at NSD reflects the nature and scope of NSD's operations and risk profile.
Internal control bodies and officers are NSD's management bodies, business units, and employees (responsible officers), as determined by NSD's Articles of Association and internal regulations, which perform certain functions as part of the internal control system.
Internal Control System Diagram
