Compliance risk management

We are currently developing a uniform system for compliance risks management across the entire Sberbank Group. The purpose of this system is to ensure that our activity is in line with legal regulations and best business practices relative to:

  • fighting money laundering and financing of terrorism;
  • controlling the economic sanctions imposed by the Russian Federation, international organisations and individual states;
  • supporting market behaviour and fair competition when making transactions on financial markets;
  • preventing use of insider information and price manipulation on financial markets;
  • managing conflict of interest and fighting corruption;
  • complying with any other ethical norms of employee conduct.

To create the uniform system in 2013, we developed an organisational structure of compliance business units in Sberbank, and in 2014 set up a compliance function in our subsidiary banks and the Group’s companies, adopted unified methodological approaches to managing compliance risks and implemented them among Group members.

Furthermore, one of our goals in 2014 was to develop initiatives aimed at promoting a compliance-oriented model of the Group’s employee conduct and maintaining a strong connection between employees’ behaviour and financial compensation. With the purpose of developing compliance culture and increasing the level of employee awareness, we created training programmes in different areas of compliance, and provide regular employee trainings. All employees are informed of the compliance requirements upon employment and have face-to-face or distance trainings.

Fighting corruption

In order to improve our performance in fighting corruption, we assessed risks related to corruption in all Group members.

table 10: Main corruption risks revealed during risk assessment in Sberbank Group in 2014
Risks revealed during assessment Measures to mininise risks
Risks of failure to observe requirements of the Policy for fighting corruption Automation of registers containing information that has to be collected and analysed in order to update and observe the Policy requirements
Risks of delays of violation reports

Creating a unified information environment to exchange information about violations

Providing a Hotline for bank employees

Risks of corruption in purchasing activities

Introducing compliance procedures in the purchasing process

Improving the purchasing system

Informing purchasing employees of the bank principles in the area of fighting corruption and including liabilities for observing these principles in job descriptions

Based on the evaluation results an Anti-Corruption Policy was developed, which defines a number of interconnected principles and procedures for fighting corruption in the Bank and the Group. It covers all employee regardless of their position. This Policy is the basis of the Anti-Corruption Programme of Sberbank Group and manifests the principle of the Bank and the Group not to accept corruption in any form (“zero tolerance” principle). In 2014, the Group members adopted and consistently implemented their own internal documents and procedures to prevent corruption as required by the Policy.

The Group’s activities had a positive impact: we observed a reduction in corruption records in the bank’s subsidiaries and zero records among affiliated companies. The number of corruption cases in Sberbank decreased from 68 in 2013 to 11 in 2014.

Figure 8: Total number of cases of corruption in subsidiary banks and affiliated companies of Sberbank