Description of the internal control system in the banking holding JSC Belagroprombank

The internal control system includes a set of internal control, internal audit, organizational structure, local legal acts (hereinafter referred to as LLA) of JSC Belagroprombank (hereinafter referred to as the bank), which determine the strategy, policy, methods and procedures of internal control, as well as the powers and responsibilities of management bodies and officials.

The bank approved the Regulations on the organization and implementation of internal control.

 

The main objectives of internal control in a banking holding are:

• efficiency and orderliness of financial and economic activities;
• compliance with legal requirements, LLA, compliance with contractual obligations;
• safety of assets;
• compliance of the internal control system with the scope and nature of the activity;
• improvement of the internal control system;
• implementation of decisions.

 

The main tasks of organizing and implementing internal control in a banking holding are:

• introduction of control procedures, taking into account the nature and volume of banking and other operations (transactions) and other activities;
• a clear distribution of powers for the implementation of internal control and the definition (fixing) of responsibility areas;
• timely provision of the management bodies of the bank, the chairman of the board of the bank, the official responsible for internal control in the bank, other officials, committees under the supervisory board of the bank with management reporting on the functioning of the internal control system (on internal control issues), including information on identified significant problems, abuses and shortcomings in the activities of the banking holding, which may lead to adverse consequences, in order to take the necessary corrective actions;
• ensuring the permanent participation of the bank's management bodies in the organization and functioning of the internal control system in the banking holding;
• organization of effective interaction between the bank and organizations - participants of the banking holding;
• assessment of the effectiveness (state) of the internal control system and identification of shortcomings in its functioning;
• development of proposals and control over the implementation of measures to improve the internal control system.

 

Organizational structure of the internal control system in a banking holding

The internal control system of a banking holding consists of three levels:

• in the bank;
• control of the bank over the activities of the organization - a member of the banking holding;
• in an organization - a member of a banking holding.

 

The internal control system in the bank is organized in the following areas:

• monitoring the achievement of the set strategic goals;
• control over ensuring the efficiency and effectiveness of the financial and economic activities of the bank when performing banking and other operations (transactions) and other activities;
• monitoring the effectiveness of asset and liability management;
• control over the safety of bank assets and investments;
• control over the reliability, completeness, objectivity and timeliness of accounting, preparation and presentation of accounting (financial), prudential and other reports;
• control of the distribution of powers and responsibilities;
• monitoring compliance by the bank and its employees with the requirements of the law, the Bank's LLA, including when conducting transactions with insiders;
• control of work with appeals of citizens and legal entities;
• control over compliance with the legislation on banking, commercial and other secrets protected by law and the requirements of the National Bank for disclosure of information;
• monitoring the effectiveness of the risk management system;
• monitoring the functioning of information systems, managing information flows (receiving and transmitting information), ensuring information security;
• control over the exclusion of a conflict of interest (the conditions for its occurrence) in the activities of the bank;
• internal monitoring of the internal control system;
• control over the organization of work to prevent the legalization of proceeds from crime, the financing of terrorist activities and the financing of the proliferation of weapons of mass destruction;
• control over the efficiency of the activities of organizations - participants of the banking holding and their compliance with the requirements of the law, LLA.

 

Information about the official responsible for internal control at JSC Belagroprombank

The Нead of the Compliance-control Department Delikatny Yuri Mikhailovich has been appointed as substitute for the official responsible for internal control in the JSC Belagroprombank during the period of his temporary absence.

 

Confidential informing system