On 10 May 2016, the Board of the National Bank of Ukraine issued Resolution No. 311 On Approval of the Regulation on Internal Audit Guidelines for Ukrainian Banks.
The NBU has developed this regulation in compliance with the requirements of the Law of Ukraine On Banks and Banking, international standards, and in line with best internal audit practices and the latest recommendations of the Basel Committee on Banking Supervision with regard to internal audit and corporate governance. The guidelines are intended to implement measures set forth in the Comprehensive Program of Financial Market Development of Ukraine until 2020 to improve regulatory requirements to corporate governance of financial sector participants, including through enhancing the role of supervisory councils and identification of reasons for internal audits.
The regulation, inter alia, has:
- Set the rules governing internal audit activities in a bank/banking group;
- Established the principles underlying the activities of an internal audit department;
- Tightened control by the bank’s council and the NBU of the activities of an internal audit department.
The regulation sets a time frame for banks until 1 July 2016 to bring their internal policies and procedures into compliance with this regulation.
Resolution No. 311 enters into force from the day following its official publication.