Region

Jurisdiction

Regulator

2012-03-22

Proper Conduct of Banking Business: Chief Accountant

The Supervisor of Banks issued regulations mandating the segregation of operating functions from accounting records within banking corporations. The chief accountant must be directly subordinate to the general manager or a non-operational management member and is prohibited from conducting business transactions or serving as risk manager. While barred from operational roles, the chief accountant may serve on committees that do not make business decisions, such as the credit committee.

Israel

Bank of Israel

Supervisor of Banks: Proper Conduct of Banking Business (7/98) Chief Accountant Page 305- 1 ONLY THE HEBREW VERSION IS BINDING CHIEF ACCOUNTANT Introduction

Internal control rules require that operating functions be segregated from the accounting records functions. This regulation specifies rules concerning this aspect with regard to the chief accountant in a banking corporation. Chief accountant
(a) The person responsible for the accounting records of the financial reporting system in a banking corporation (henceforth – “chief accountant”) shall be directly subordinate to the general manager or to a member of management who is not responsible for an area in which business transactions are conducted. (b) The chief accountant and his staff shall not conduct or be responsible for conducting business transactions (including those involving financial instruments), including the position of risk manager in the banking corporation as defined in Regulation no. 339. (c) Despite the aforesaid in sub-sections (a) and (b), a chief accountant may be a member of certain committees, except for committees making business decisions (such as the credit committee).

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