Chapter II
INTERNAL CONTROL SYSTEM
Article 4. Requirements and principles of operation of the internal control system
1. Any risk that is potentially harmful to the efficiency and operation objectives of the credit institution, foreign bank's branch shall be identified, measured, assessed on a regular and ongoing basis so as to timely detect, prevent and prepare appropriate measure for risk management. Upon any change in business target, product, service and new business line, the credit institution, foreign bank's branch shall check, idenfity any related risk in order to set up, amend, supplement their mechanisms, processes, regulations on internal control accordingly.
2. Operation of the internal control system shall be an integral part of daily activities of the a credit institution, foreign bank's branch. Internal control shall be designed, installed and implemented immediately in all operational processes at all units, divisions of the credit institution, foreign bank's branch in various forms, such as:
a) Clear and explicit power delegation; ensuring to clearly separate the duties and powers of individuals, divisions in the credit institution, foreign bank's branch;
b) Regulation on the specific risk limit for each individual, division in the performance of transactions;
c) Process on the appraisal and approval of transactions; a process should be ensured to have the involvement of at least 02 officers, one performs and the other controls the transaction. Any individual shall be prohibited from performing and deciding an operational process, a specific transaction alone, except for transactions within the limit approved by the credit institution, foreign bank's branch in accordance with provisions of applicable laws.
3. The power delegation shall be established and implemented on a reasonable, detailed and clear basis so as to avoid conflict of interests; ensuring the principle that one officer shall not concurrently assume different positions, duties with the contradictory or overlapped purpose and interests; ensuring that any officer in the credit institution, foreign bank's branch shall not be facilitated to control activities, suppress information for personal purpose or conceal acts of violation of laws and internal regulations of the credit institution, foreign bank's branch.
4. Ensuring the implementation of accounting regime in line with applicable provisions and there should be an internal information system on finance, operation, compliance performance at the credit institution, foreign bank's branch and on the outside economic, market situation that is sensible, reliable and timely for an efficient administration and management task.
5. The information system, information technology of the credit institution, foreign bank's branch shall be monitored and protected in an appropriate and safe manner. There should be an independent back-up management mechanism in order to timely cope with unexpected situation, including natural disaster, fire, explosion, hacker… so as to ensure the compliance with provisions on safety and security of the bank's information technology system, ensure the business of the credit institution, foreign bank's branch to be regular and uninterrupted.
6. Ensuring that every staff of the credit institution, foreign bank's branch shall be aware of the importance of internal control activity; role of each individual in the internal control process relating to their function, duty, and fully and efficiently implement relevant regulations, processes of internal control.
7. Manager of divisions, operational units and related individuals shall regularly review and assess the effectiveness and efficiency of the internal control system; any shortcoming of the system shall be timely reported to the management in charge; major shortcomings that may be harmful or be risky shall be immediately reported to the General Director (Director), Board of Directors, Board of Members, Controllers' Committee.
8. Any individual, division of any level of the credit institution, foreign bank's branch shall, regularly and constantly, inspect and self inspect the implementation of related internal regulations, processes and be responsible for the result of their operational performance to the credit institution, foreign bank's branch and to the law.
9. Head of units, divisions of the credit institution, foreign bank's branch shall be responsible
for reporting the result of their assessment on the internal control of their unit; recommending solution for shortcomings, inadequacies (if any) to the management in charge, on a periodical or unexpected basis, upon request by the management in charge.
Article 5. Establishment and maintenance of operation of the internal control system
1. The credit institution, foreign bank's branch shall establish an internal control system to assist the General Director (Director) to manage, smoothly, safely and in compliance with laws, every operational activity of the credit institution, foreign bank's branch.
2. The credit institution, foreign bank's branch shall closely monitor the implementation of laws and internal regulations; directly supervise operational activities in all areas at the head office, transaction department, branches, representative offices, non-productive units and subsidiaries of the credit institution, foreign bank's branch. The credit institution shall regularly review the implementation of laws and internal regulations by their associated companies in accordance with provisions of applicable laws.
3. The credit institution, foreign bank's branch shall, upon finding out any mistake, difficulty in the course of business, timely define and take corrective actions.
Article 6. Self inspection and assessment of the internal control system
1. On an annual basis, the General Director (Director) of the credit institution, foreign bank's branch shall proceed to review, inspect and assess, by himself, the internal control system of the credit institution, foreign bank's branch at every unit, division of management, business, operation and each operational activity.
2. The self review and assessment as above said shall include the review and asssessment on the adequacy, effectiveness and efficiency of the internal control system based on the identification and evaluation of risk so as to determine the weaknesses of the internal control system and indicate necessary changes to the internal control system for handling and overcoming such problems.
3. General Director (Director) of the credit institution, foreign bank's branch shall make report on the self review, assessment of the internal control system as mentioned above. This report should be updated with risks and summarise major activities of the credit institution, foreign bank's branch, all the relevant risks and review, control activities at the level of entire credit institution, foreign bank's branch, at the level of each unit, division and each operation.
4. The abovesaid report of self review and assessment on the internal control system shall be submitted to the Board of Directors, Board of Members, Controllers' Committee and sent to the State Bank (Banking Inspection and Supervision Department; State Bank's branch) within a period of 30 days since the ending of the fiscal year; report of a People's credit fund alone shall be submitted to the State Bank's branch.
Article 7. Independent assessment of the internal control system
1. Operation of the internal control system of a credit institution, foreign bank's branch shall be subject to independent assessment in accordance with provisions in Paragraph 3 Article 40 of the Law on Credit Institutions.
2. Contents of an independent assessment by the internal audit as to the internal control system shall include review, assessment and report on the adequacy, efficiency of the internal control system with regard to the audited operation, area through the risk identification and measurement, defining shortcomings of the internal control system and defining necessary changes to the internal control system for settlement.
3. On an annual basis, internal audit of the credit institution, foreign bank’s branch shall be required to carry out the review and assessment on the conformability, efficiency of the internal control system. This independent assessment report shall be an integral part of the annual internal audit report.
Internal audit result shall be timely reported to the Board of Directors, Board of Members, Controllers’ Committee and submitted to the General Director (Director) of the credit institution, foreign bank’s branch and copied to the State Bank (Banking Inspection and Supervision Department, State Bank’s branch); report of the people’s credit fund alone shall be submitted to the State Bank’s branch.
4. The independent assessment by external audit on the internal control system shall be performed in conformity with provisions of the State Bank on independent audit applicable to credit institutions.
Tìm kiếm
Thông tư 44/2011/TT-NHNN (Bản Word)