Ethics The system of Karafarin Bank is based on the trust earned from its clients, shareholders and as well public opinion. We believe that this trust comes from transparency, integrity and genuineness to which the employees, the managers and the board members of Karafarin bank have always adhered. To us, customer satisfaction and safeguarding their interests are as important as the Bank’s interests. More importantly, whilst it may be in our interest, violation of customer rights is by no means acceptable to us Principle 1: Fair and Lawful Behaviour • The employees respect and accept all organizational values. • Expected individual values are: honesty and integrity, teamwork culture, self-esteem, learnability, good conduct, decorousness and dignity. • The behaviour of the employees in their own private lives is such that it promotes credibility and good reputation of the Bank. Principle 2: Non-Discriminatory Behavior • Karafarin Bank rejects any form of discrimination based on gender, race, creed, religion, political belief, etc and respects the expectations of all beneficiaries. • Our promotion system is essentially merit-based. It relies on employee capabilities, skills, experience, qualifications, and a sense of responsibility towards the Bank’s interests. Principle 3: Confidentiality of Customer Information • Confidentiality is of vital importance to us, particularly maintaining the confidentiality of information concerning customer banking operations and insurance. Thus, customer personal information is safeguarded with utmost care. • Confidential customer information is kept secret in the most appropriate manner, and access is only granted to employees who are immediately concerned with such information. In other words, customer information is only provided on a need-to-know basis. • Karafarin Bank shall provide customer information to all judicial bodies or any other authorities who are authorised by law to request such information. Principle 4: Informing Customer • Karafarin Bank’s employees should not mislead the customers and the market through providing information and any actions adopted by the Bank’s managers and officials. • The Bank shall provide all customers with the necessary information at its disposal which affects the wise decision-making process of the customer. • The type of information and advice given to any customer vary according to the kind of product or service required. Principle 5: Complaints Management At Karafarin Bank all customer complaints are resolved fairly, consistently and promptly according to rules and regulations. Principle 6: The Bank’s Policy towards Shareholders The Bank’s shareholders are entitled to dividends from the revenues derived from the Bank’s operations which should be greater than any dividends from similar operations and investments in other institutions. Principle 7: Financial Reporting • Karafarin Bank is bound to publish its financial reports in time and in a complete, accurate, transparent and understandable manner, through its media and website. Such reports should be approved by the Bank's officials and independent auditors. • The Bank’s independent auditors are responsible for ensuring transparency, nondisclosure of information and accuracy of the financial statements, and adequacy of the internal controls. Principle 8: Prevention of Bribery and Corruption Karafarin Bank does not tolerate any form of bribery and corruption. Principle 9: Acceptance of Gifts and other Benefits Acceptance of gifts and other benefits, which affects the interests of the bank and/or puts the professional autonomy or self-esteem of the employees at risk, is fundamentally restricted by Karafarin Bank’s regulations. The employee’s are permitted to accept gifts, provided the following requirements are met: - Books - Dinner and lunch invitations for discussing business matters in a non-private manner. - Invitations to any special, non-professional events, such as invitations to concerts, theaters, sports stadiums, seminars, conferences and ceremonies, provided the dignity of the Bank and its employees is maintained and that the host is present at the event. Principle 10: Accountability to Regulatory Bodies Karafarin Bank is bound to honestly and to explicitly respond to any enquiries made by the regulatory bodies, while adhering to its professional obligations. Principle 11: Karafarin Bank's Ethical Policy towards Employees Promotion of knowledge and capabilities of the employees, job promotion opportunities and welfare, fair and adequate compensation, fair system of remuneration, making efforts to facilitate the organizational communication, and meritocracy are recognized as the obligations of the Bank towards its employees. Principle 12: Cultural and Charitable Contributions Maintaining transparency in offering contributions to educational and cultural institutions and/or charitable institutions is recognized as part of Karafarin Bank’s social obligations. The Bank’s Board of Directors is responsible for making decisions on such contributions. Principle 13: Karafarin Bank’s Media Relations and Independence of Journalists • The Bank’s press and media relations shall be transparent, accurate, timely and understandable. • Although Karafarin Bank respects the professional independence of journalists, it makes no payment to them for their writings published in the media. • Only the CEO, the vice-CEO and the Bank's directors are authorised to disclose any information about the Bank. Any managers and experts of the Bank making any statement or comment in public shall make it clear that their opinion is their own and is by no means an official statement by the Bank. Principle 14: Ethical Policy towards Competitors At Karafarin Bank, we firmly believe in fair competition. Thus, respecting our rivals, adopting a fair approach, avoiding destructive and misleading advertising, avoiding establishing financial relationships with influential individuals in rival banks, and protecting the privacy of competitors are amongst our values. Principle 15: Potential Conflict between the Employees’ Individual Interests and the Bank’s Interests • Our employees are only allowed to provide specialist advisory services to any third parties as long as they do not conflict with the interests of the Bank. Hence, the Bank must approve of any action such as providing services to, or representing, and/or being recruited with any third parties and any other commercial companies. • Formation of any companies or institutions by the Bank’s employees which might have potential conflict of interests with that of the bank’s requires prior consent from the bank. • The employees are required to inform the Bank of their affiliated persons or dependents or those close to them with intentions of engaging in any activities which may be in conflict with the interests of the Bank. • The employees are required to inform their immediate supervisors if they have been granted any gifts for attending or speaking in public or preparing any reports and articles related to their duties in the Bank. • The employees shall inform the Bank of any potential risk of reputation or conflict of interests in order to obtain necessary instructions. Principle 16: Safeguarding the Bank’s Assets The employees of the Bank or any third parties are proscribed from abusing the tangible or intangible assets of the Bank, and the Bank shall adopt any measures as deemed necessary for prevention of any abuse. Principle 17: Prevention of Money Laundering & Terrorism Financing (Illicit Activities) • It is in conflict with Karafarin Bank’s principles to be exploited through any illegal activities by its customers, employees, agencies and affiliated companies or any third parties, and the Bank takes any measures required for preventing such abuse. • Karafarin Bank is fully committed to combating money laundering and terrorism financing operations and its activities are based on the know-your-customer (KYC) principle, in accordance with any applicable regulations and guidelines. • The Bank’s employees shall not only avoid engagement in any illegal activities, but shall also prevent such activities at their workplace. These requirements are not solely limited to the Iranian laws and regulations, but also include any regulations applicable in the clients’ countries. Principle 18: Environmental Obligations • The employees’ compliance with environmental standards is regarded as important as observance of the economic and social concerns. • All employees shall do their best to maintain and protect natural resources and minimize any negative impact their professional activities may have on the environment. • The Bank’s employees shall work to protect the environment through efficient use of the resources and reducing waste of the natural resources aiming at recycling material in the production cycle. Principle 19: Requirements and Expectations • The objectives of the code of conduct will be achieved only if all the above requirements are satisfied. The employees are individually responsible for commitment to the provisions specified in this Ethics Charter. • All employees shall be encouraged to report any violation and breach of the regulations. This will help prevent any small issues from becoming big problems. • All managers shall supervise the compliance of the employees’ behavior with the provisions stipulated in this Charter. Principle 20: Administrative Power • Failure to comply with this Charter may expose the Bank’s employees or their colleagues to legal and regulatory penalties. • Disciplinary actions imposed by the Disciplinary Committee regarding the lack of proper conduct may result in warnings, penalties and punishments, and termination of the employment relationship (according to the disciplinary regulations).