The National Bank of Ukraine (NBU) as part of the implementation of the financial sector development program until 2020 has streamlined the organization of internal audit at banks and toughened control in the segment, the regulator has reported on its website.
According to NBU resolution No. 311 dated May 10, 2016 on the approval of the provisions on the organization of internal audit at Ukrainian banks, banks are obliged to bring their internal documents in line with its requirements before July 1.
"The document is implementing the measures of the comprehensive program on development of the financial sector until 2020 in part of improvement of the requirements to corporate management, including thanks to strengthening the role of supervisory boards and determining the grounds for conducting audit," the regulator said.
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The provisions spells out the procedure and principles for operation of internal audit departments, toughens control of the banks' boards and the NBU over the operation of these departments.
The measure meets international standards of internal audit practice and latest requirements of the Basel Committee on Banking Supervision regarding internal audit and corporate management.
The resolution takes effect next day after its publication.