Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 584

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 584
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, analyse and monitor key stakeholders’ perception of Grupo Santander and the financial sector, and how that perception may change. Our model is also consistent with the overall risk management and control processes (risk profile, risk appetite, economic capital, emerging risks, and others).

| Key reputational risk lines of action in 2024 |     |                                                                                                                                                                                  |
| Policies, procedures and guidelines           |     |                                                                                                                                                                                  |
|                                               |     | →Reviewed models, policies and criteria in sensitive activities: the defence sector and subsidiaries oversight.                                                                  
 →Collaborated with other functions to implement greenwashing guidelines, awareness and meet regulatory requirements.                                                             
 →Reviewed our humanitarian crisis management guidelines and set assessment criteria for Santander aid deployment.                                                                
 →Collaboration in definition of a protocol to mitigate reputational risk when restricting or ending business relationships due to FCC reasons.                                   |
| Risk management, methodologies and control    |     |                                                                                                                                                                                  |
|                                               |     | →Ran initiatives to share best practices with subsidiaries, including enhancements of collaborative tools.                                                                       
 →Enhanced methodologies to quantify reputational risk for economic capital and developed a methodology to quantify reputational impact related to climate & environmental risks. |
| Subsidiaries oversight and reporting          |     |                                                                                                                                                                                  |
|                                               |     | →Enhanced subsidiary oversight, governance and challenge processes.                                                                                                              
 →Updated the methodology and processes for the control environment at Group and subsidiary-level (quality assurance, oversight perimeter, etc.).                                 
 →Bolstered the process of risk reporting and consolidation in the corporation and subsidiaries for reputational risks, based on a forward-looking approach.                      |

### Financial Crime Compliance (FCC)
Financial crime risk arises from acts or the use of the Group's means, products and services for criminal or illegal activities.

The business functions form the first line of defence who is primarily responsible for identifying, managing, mitigating and reporting financial crime risk, taking into consideration the Group's risk culture. The Accountable Executive for FCC oversees that the business embraces, implements and executes the FCC Framework and FCC Programme effectively.

The FCC function, as a second line of defence, oversees financial crime risks and maintains suitable policies and procedures to manage the business activities within the Group's established risk appetite.

In addition, in 2024, we continued to focus on these priorities:

• Priority crime threats, geopolitical events, and focus on information sharing drove the general FCC Group activity for prevention and mitigation purposes against money laundering, terrorism financing and sanctions violation.

• Moreover, we focused