SYSTEM OF INTERNAL CONTROL OF A CREDIT INSTITUTION

In accordance with Regulation COBAC R-2016/04 relating to internal control in credit institutions and financial holding companies, the system of internal control is aimed at ensuring;

  • Verification of internal operations and procedures, and measurement, control and monitoring of risks,
  • The reliability of the conditions for collecting, processing, distributing and storing accounting and financial data,
  • The effectiveness of internal channels for the circulation of documentation and information and their distribution to third parties.

The system of internal control is in two levels;

  1. Permanent control: This has 2 levels;
  2. Operational staff, team managers and line managers perform the first level.
  3. The second level comprises of internal control operations proper, the compliance function and risk management. The second level is assured as a result of the proper execution of control of the first level. It is carried out a posteriori by teams dedicated to compliance control, who do not perform operational functions. These teams must be autonomous, report directly to the executive body, and have a remuneration system whose variable part may not be calculated on the basis of the operations they are responsible for auditing. The appointment of the three heads of these entities shall be notified to the Banking Commission for Central Africa in accordance with the conditions laid down in the regulations.
  4. Periodic Control or Internal Audit: This is carried out, under the responsibility of the deliberative body and the audit committee, by independent personnel working on site or in the field as part of ad hoc audits.

Ongoing control of the compliance, security and validation of transactions and compliance with other risk monitoring procedures is carried out by dedicated staff or by other staff in charge of operational activities.

Periodic control of the compliance of operations, the level of risk incurred, compliance with procedures, and the effectiveness and appropriateness of risk monitoring and management systems, is ensured by means of investigations conducted by internal audit.

The internal control system is designed by the executive body and approved by the decision-making body.

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