Preventing Fraud: What are the central securities depositories doing to mitigate this risk? Cancún, May 21, 2015

1 © 2015 KPMG Advisory Services S.A.S. is a Colombian simplified stock partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”). What is Fraud? Generally, fraud is described as a deliberate act of abuse of trust, taking advantage of swindles. It is done for profit without the consent of the concerned company. Source: Global profiles of a fraudster. KPMG International, 2012.

2 © 2015 KPMG Advisory Services S.A.S. is a Colombian simplified stock partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”). 60% 50% 40% 30% 20% 10% 0% What is the amount of losses due to Fraud activity? $200,000 - $399,999 $400,000 - $599,999 $600,000 - $799,999 $800,000 - $999,999 $1,000,000 and up Less than $200, % 11.8% 6.6% 3.4% 1.8% 21.9% The average Fraud $145thousand Source: Report to the nations. ACFE, 2014.

3 © 2015 KPMG Advisory Services S.A.S. is a Colombian simplified stock partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”). Global profile of a fraudster Source: KPMG International, 2013.

4 © 2015 KPMG Advisory Services S.A.S. is a Colombian simplified stock partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”). Why the Fraud occurs? The damage caused by Fraud activities is 3.5 trillion USD globally!! 26% 22% 18% 14% 11% 9% Management override Overconfidence and lack of supervision Avarice Weak ethical culture Financial goals pressures Economic context pressures Source: KPMG International, 2013.

5 © 2015 KPMG Advisory Services S.A.S. is a Colombian simplified stock partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”). Main global Fraud activities Types of Fraud Corruption Asset Misappropriation Financial Statement Fraud Conflict of interest Bribery Illegal gratuities Economic extortion Cash Inventory and All other assets Asset/Revenue Overstatements Asset/Revenue Understatements Cybercrime Network intrusion Intellectual property theft Improper disclosures Deny of Service Typically in the financial industry. Source: KPMG International, 2013.

6 © 2015 KPMG Advisory Services S.A.S. is a Colombian simplified stock partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”). Is your organization prepared to tackle Fraud? Source: KPMG International, 2013.

7 © 2015 KPMG Advisory Services S.A.S. is a Colombian simplified stock partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”). Mitigating the Fraud risk Fraud Risk ManagementProgram Prevention DetectionResponse Diagnostic Design Implementation Evaluation PreventionDetectionResponse Supervised by: Board of Directors / Audit Committee, control and compliance areas (Risk Management and Internal Audit) Fraud Risk Assessment Company network firewalls Due Diligence of employees and third parties Anti-corruption policies and manuals Training the internal audit team Anonymous reporting mechanisms (line ethics) Audit supervision and control areas Proactive Data Analysis (DA) Data mining of critical business Monitoring routines Internal investigation protocols Fraud risk matrix for all the organization Corrective actions protocol Source: KPMG International, 2013.

Thanks Arturo del Castillo Partner KPMG Advisory Services S.A.S. Tel: