New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 5 - Internal And External Audits At Branches And Agencies Of Foreign Banking Corporations
Section 5.4 - Internal audits
Current through Register Vol. 46, No. 12, March 20, 2024
(a) The superintendent encourages all foreign bank offices to employ qualified internal auditors as an important aspect of adequate internal control. The superintendent may, in his or her discretion, require a foreign bank office to follow requirements similar to those set forth in paragraph (b) of this section.
(b) Foreign bank offices with a composite ROC-A rating of four or worse, and an "O" rating of four or worse, and, on a case-by-case basis as determined by the superintendent, foreign bank offices with an "O" rating of three or worse, regardless of the composite rating, must have comprehensive on-site internal audits performed annually by either the foreign banking corporation's head office internal auditors or foreign bank office resident or regional internal auditors who report directly to the head office.
(c) The superintendent may, in his or her discretion, require foreign bank offices subject to subdivision (b) of this section to have the comprehensive on-site internal audits performed annually by part-time or full-time regional or resident internal auditors who report directly to head office. The superintendent shall decide whether the internal auditors shall be part-time or full-time, taking into consideration the size and activities of the foreign bank office. Any such internal audit shall follow the requirements described in subdivision (b) of this section. In addition, at the time of each onsite examination, the foreign bank office shall present to the examiner in charge the formal qualifications of the internal auditors and the internal auditors' actual work plan since the previous examination and the internal auditors' program for the next 12 month period.
(d) Reports of internal auditors required under this Part together with supporting workpapers must be in English. Workpapers shall be made available to the superintendent upon request.