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2024-08-29

Regulation on Supplementing and Amending the Regulation on External Audit of Microfinance Institutions

The Board of the Central Bank of the Republic of Kosovo amended external audit requirements for microfinance institutions by limiting continuous auditor engagement to five consecutive years and mandating a two-year cooling-off period before re-engagement. The regulation also requires approved external auditors to comply with statutory independence rules and permits currently engaged auditors to continue their assignments up to the five-year limit. These amendments integrate with the existing 2013 framework and entered into force on August 30, 2024.

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1 of 2 Pursuant to Article 35, paragraph 1, sub-paragraph 1.1, of Law No. 03/L-209 on the Central Bank of the Republic of Kosovo (Official Gazette of the Republic of Kosovo, No. 77/August 16, 2010), supplemented and amended by Law No. 05/L-150 on Amending and Supplementing Law No. 03/L￾209 on the Central Bank of the Republic of Kosovo (Official Gazette of the Republic of Kosovo, No. 10/03 April 2017), and Article 103, paragraph 1, and Article 114 of Law No. 04/L-093 on Banks, Microfinance Institutions and Non-Bank Financial Institutions (Official Gazette of the Republic of Kosovo, No. 11/11 May 2012), the Board of the Central Bank of the Republic of Kosovo, in its meeting held on August 29, 2024, approved the following: REGULATION ON SUPPLEMENTING AND AMENDING THE REGULATION ON EXTERNAL AUDIT OF MICROFINANCIAL INSTITUTIONS Article 1 Purpose and Scope The purpose of this regulation is to supplement and amend the Regulation on the External Audit of Microfinance Institutions (MFI), approved by the Board of the Central Bank on August 29, 2013 (hereinafter: basic regulation). Article 2

  1. Paragraph 5 of Article 4 of the basic regulation shall be amended to read as follows:
  2. Continuous employment of the same external auditor is limited to five (5) consecutive years, and the same external auditor may participate in the audit of the same MFI again, after the passage of the time period of two (2) ) years from his last engagement in that MFI.
  3. Paragraph 6 shall be added to Article 4 as follows:
  4. In the case where the external auditor is currently engaged and approved by CBK, upon the entry into force of this regulation, the continuation of his engagement may be done so that in no case does it exceed the period of five (5) years from the date of the first engagement. Article 3 Paragraph 2 of Article 8 of the basic regulation shall be amended to read as follows:
  5. Approved external auditors must also be in compliance with the provisions of the Law on accounting, financial reporting and auditing as well as the by-laws issued pursuant to this law on the issue of auditor independence.

2 of 2 Article 4 Effects and Entry into Force

  1. All other provisions of the basic regulation, except the provisions amended and supplemented by this regulation, shall remain in force.
  2. This regulation shall be read and understood as one with the basic regulation and shall be considered an integral part of it, together with the amended provisions of the basic regulation.
  3. This Regulation shall enter into force on August 30, 2024. Bashkim Nurboja Chairman of the Board of the Central Bank of the Republic of Kosovo
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