Current through Reg. 50, No. 187; September 24, 2024
(1) Each international bank agency shall keep
a set of accounts and records in English, reflecting all transactions on a
daily basis. The international banking corporation of each bank agency shall
perform, or shall cause to be performed, an audit of the agency within each
calendar year and within 15 months of the previous audit, in compliance with
the following minimum audit requirements. If the audit is performed on a
departmental or continuous basis, it should be initiated during the calendar
year and within 15 months of the previous audit.
(2) Persons who perform audits for the
international bank agencies must be independent of any manager or employee in
charge of operating the international agency and must qualify pursuant to one
of the following classes:
(a) The audit
department of the international bank agency or the audit department of an
affiliated group or related bank holding company, or the audit department of a
correspondent bank, provided that the audit department and the audit department
supervisor are under management of the international banking
corporation.
(b) Certified Public
Accountants licensed to practice in the State of Florida and independent of the
international bank agency and of its affiliates.
(3) A party is considered independent if:
(a) The party reports directly to the
international bank agency's board of directors or other entity charged with
supervision of the international bank agency;
(b) The party's duties at the international
bank agency are confined entirely to auditing the international bank
agency;
(c) The party has no
proprietary interest, directly or indirectly, in any partnership, firm, or
other person that controls or directs the international bank agency;
(d) The party has no outstanding loans or
other obligations that have been criticized by any other auditor or any
regulatory agency;
(e) All
relationships the party has with any member of the board of directors or other
entity charged with supervision of the agency have been disclosed to the board
of directors or other entity charged with supervision of the agency and all
questions concerning the partys' independence have been resolved before the
internal audit begins; and,
(f) For
certified public accountants, independence shall be governed by the rules of
the State Board of Accountancy.
(4) To satisfy the requirements of this
section, each internal audit shall:
(a) Assess
the effectiveness of the international bank agency's internal control policies
and procedures, including the electronic data processing function;
and,
(b) Be conducted in accordance
with generally accepted auditing standards and shall include an assessment of
each of the following areas:
1. Asset
accounts;
2. Liability
accounts;
3. Regulatory
capital;
4. Income and expense
accounts; and,
5. Contingent
liabilities and off-balance sheet activities.
(5) In lieu of a comprehensive internal
audit, an international bank agency may satisfy this audit requirement by
having a continuous audit performed by a party qualified pursuant to subsection
(2), above.
(6) Within 90 days
after the completion of the internal audit, and within 45 days of acceptance by
the board of directors or other entity charged with supervision of the
international bank agency, the board of directors other entity charged with
supervision of the international bank agency shall submit the following to OFR:
(a) A copy of the completed internal audit
report, including the date or dates on which the audit was conducted;
(b) A statement indicating that all of the
areas outlined in this rule were reviewed, or specific reasons why certain
areas were not reviewed;
(c) A
statement of condition and a statement of income and expense for the financial
institution (and the holding company if appropriate) as of the audit
date;
(d) A statement describing
the findings and recommendations of the audit;
(e) A copy of the international bank agency's
response to the auditors' findings and recommendations; and,
(f) A letter from the international banking
corporation's board of directors or other entity charged with supervision of
the international bank agency stating that the audit report, the auditors'
recommendations and the international bank agency's response to the auditors'
recommendations have been reviewed and accepted, or in the alternative why they
have been rejected. All audit documentation specified herein shall be forwarded
to OFR.
(7) OFR shall
review each audit and, if it finds that the internal audit does not
comprehensively address all relevant areas of concern or accurately reflect the
condition of the financial institution, OFR shall require an audit pursuant to
section 655.045(3)(a),
F.S.
Rulemaking Authority 655.012(2),
655.045(3),
663.09, 663.13 FS. Law Implemented 655.045(3),
663.09
FS.
New 3-29-83, Formerly 3C-15.12, Amended 8-19-86, 5-22-90,
10-29-91, 2-17-92, Formerly 3C-15.012, Amended 3-11-01, Formerly 3C-140.018,
Amended 1-1-18.
