WHEN IS THE DEADLINE FOR SUBMITTING REPORTS ON THE INTERNAL CONTROL SYSTEM OF NON-BANK CREDIT INSTITUTIONS?

What types of reports are included in the reports on the internal control system of non-bank credit institutions? What is the deadline for non-bank credit institutions to submit reports on the internal control system? Through today’s article, let’s learn about this issue with Pham Consult!

Pursuant to Article 3 of Circular 14/2023/TT-NHNN, there are provisions on the definition of the internal control system of non-bank credit institutions as follows:

Explanation of terms

In this Circular, the following terms are construed as follows:

1. The internal control system is a set of mechanisms, policies, procedures, internal regulations, and organizational structure of a non-bank credit institution that is built in accordance with the provisions of the Law on Credit Institutions, this Circular, and relevant legal provisions and is organized and implemented to control, prevent, detect, and promptly handle risks and achieve the set requirements. The internal control system implements supervision by senior management, internal control, risk management, and internal audit.

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Article 6 of Circular 14/2023/TT-NHNN stipulates as follows:

Report to the State Bank on the internal control system

1. Non-bank credit institutions must prepare reports on the internal control system according to the appendices issued with this Circular, including:

a) Annual report on internal control and risk management (Appendix No. 01);

b) Annual report on internal audit (Appendix No. 02);

c) Ad hoc report on internal audit.

2. Reports on the internal control system must update the existing problems, limitations, and risks (if any) in the entire non-bank credit institution (including departments at the head office; branches and other affiliated units of the non-bank credit institution).

Thus, the report on the internal control system of a non-bank credit institution includes:

– Annual report on internal control and risk management (Appendix No. 01);

Download the Annual report on internal control and risk management form

– Annual report on internal audit (Appendix No. 02);

– Ad hoc report on internal audit.

According to Clause 3, Article 6 of Circular 14/2023/TT-NHNN, the following provisions are made:

Report to the State Bank on the internal control system

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3. Deadline for submitting reports:

a) Reports specified in Point a, Clause 1 of this Article: Within 45 days from the end of the fiscal year;

b) Reports specified in Point b, Clause 1 of this Article: Within 60 days from the end of the fiscal year;

c) Reports specified in Point c, Clause 1 of this Article: Within 15 working days from the date of completion of the unscheduled internal audit (including approval by the Board of Supervisors).

4. The deadline for closing the report data is the end of the fiscal year.

5. The report is prepared in writing, sent directly or by post to the State Bank (Banking Inspection and Supervision Agency).

Thus, the deadline for non-bank credit institutions to submit reports on the internal control system is:

– Within 45 days from the end of the fiscal year for annual reports on internal control and risk management;

– Within 60 days from the end of the fiscal year for annual reports on internal audit;

– Within 15 working days from the date of completion of the unscheduled internal audit (including approval by the Board of Supervisors) for unscheduled reports on internal audit.

According to Article 5 of Circular 14/2023/TT-NHNN, the following provisions are made:

Storing records and documents on the internal control system

1. Non-bank credit institutions have internal regulations on the management and storage of records and documents on the internal control system.

2. The management and storage of records and documents on the internal control system of non-bank credit institutions must ensure:

a) Compliance with legal provisions;

b) Full storage to provide upon request of internal auditors, independent auditing organizations, competent authorities during internal audits, independent audits, inspections, and supervision.

Thus, the storage of records and documents on the internal control system must ensure:

– Compliance with legal provisions;

– Fully archive to provide upon request of internal audit, independent audit organization, competent authority during internal audit, independent audit, inspection, supervision.

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