Regulation on External Audits

ރައީސުލްޖުމްހޫރިއްޔާގެ އޮފީސް ބޮޑުތަކުރުފާނުމަގު މާލ،ެ ދިވެހިރާއްޖ.ެ ފޯނ:ު 3323701 ، 3336137 ފެކްސ:ް 3325500 ވެބްސައިޓ:ް އީމެއިލ:ް mv.gov.po@gazette mv.gov.gazette.www  ގެޒެޓުގައި ޝާއިޢުކުރަނ،ީ ޤާނޫނުތަކާއ،ި ގަވާއިދުތަކާއ،ި ސަރުކާރުގެ އޮފީސްތަކުން ނެރުއްވާ އިޢުލާންތަކާއ،ި ދެންނެވުންތަކާއ،ި ނޫސްބަޔާންތައް ފަދަ ލިޔުންތަކެވ.ެ  ގެޒެޓް ޝާއިޢުކުރަނީ ކޮންމެ ހަފުތާއެއްގެ ހޯމަ ދުވަހާއި ބުރާސްފަތި ދުވަހުއެވ.ެ  ހޯމަ ދުވަހުގެ ގެޒެޓުގައި ޝާއިޢު ކުރެއްވުމަށް ފޮނުއްވާ ލިޔުންތައް ފޮނުއްވުމުގެ އެންމެފަހު ވަގުތަކ،ީ ކުރީ ހަފުތާގެ ބުރާސްފަތި ދުވަހުގެ މެންދުރު 12:00 ގެ ކުރިންނެވ.ެ އަދި ބުރާސްފަތި ދުވަހުގެ ގެޒެޓުގައި ޝާއިޢު ކުރެއްވުމަށް ފޮނުއްވާ ލިޔުންތައް ފޮނުއްވުމުގެ އެންމެފަހު ވަގުތަކ،ީ ހިނގަމުންދާ ހަފުތާގެ އަންގާރަ ދުވަހުގެ މެންދުރު 12:00 ގެ ކުރިންނެވ.ެ ލިޔުންތައް mv.gov.po@gazette މި އ.ީމެއިލް އެޑްރެހަށް ފޮނުއްވުން އެދެމެވ.ެ  ގެޒެޓުގައި ޝާއިޢުކުރެއްވުމަށް ފޮނުއްވާ ލިޔުންތައް ލިޔެފައި ހުންނަންވާނީ މައިކްރޯސޮފްޓް ވާރޑުގައި ފަރުމާ ފޮންޓުންނެވ.ެ ގަވާއިދު ނަންބަރ:ު -171R2015/ ވޮލިއުމ:ް 44 އަދަދ:ު 257 ތާރީޚ:ު 10 ޛުލްޤަޢިދާ 1436 - 25 އޮގަސްޓު 2015 އަންގާރަ AUDITS EXTERNAL ON REGULATION

3 REGULATION PRUDENTIAL AUDITS EXTERNAL ON REGULATION Paragraphs of Arrangement I PART Preliminary PARAGRAPH ......................................................................................................................................4Introduction 1. ..................................................................................................................................................4Title 2. .......................................................................................................................................4Application 3. ................................................................................................................................4Commencement 4. ........................................................................................................................................4Definitions 5. II PART Policy of Statement PARAGRAPH .............................................................................................................................................5Purpose 1. ...................................................................................................................................5Responsibility 2. III PART Requirements Specific and Implementation PARAGRAPH ..................................................................................................................5Requirements Minimum 1. .............................................................6MMA and auditor external the ,bank the between Meeting 2. ............................................................................................................................6Actions Prohibited 3. ...................................................................................................................7Requirements Reporting 4. IV PART Measures Corrective PARAGRAPH ...................................................................................................8Sanctions and Measures Remedial 1.

4 PRELIMINARY :I PART Maldives (24/2010 .No Law of 66 Section to pursuant issued is Regulation This – Introduction 1: .(Act Banking “.Audits External on Regulation "as cited be shall Regulation This – Title 2: Law (Act Banking Maldives the under licensed Banks all to applies Regulation This – Application 3: .(24/2010 .no 2015. August 25 on effect into come shall Regulation This – Commencement 4: expressly where except ,shall Regulation this in used expressions and terms The – Definitions 5: respective same the have ,requires otherwise context the where or Regulation this in below defined :(24/2010 .no Law (Act Banking Maldives the in as meaning .(24/2010 .no Law (Act Banking Maldives the means” – Act) “1 ( to order in reviewed are bank a of records and books the whereby process the means” – audit) “2 ( (ii (,bank a of performance and condition the regarding information financial confirm and verify) i( render) iii (and ,regulations accounting accepted with accordance in statements financial prepare the of respects material all in view fair and true a give statements financial the whether opinion an .bank the of condition financial in opinion an renders and audit an performs that firm or person the means” – auditor) “3 ( .standards auditing and accounting accepted and regulation this with accordance bank to auditor external an by provided letter the means” – management to letter s'auditor) “4 ( ,systems control internal s'bank the of respect in weaknesses or issues addressing management matters material other any or ,data financial of integrity ,systems recordkeeping and accounting .audit an of course the during identified the in engage to ,Act Maldives the under permit or license a holding party a means” – bank) “5 ( .Act the of 25 Section in listed activities banking the of part or all; business banking

5 conducting of purpose the for bank a by engaged is who person a means” – auditor external) “6 ( .Act the or regulation this of requirements the of respect in services related-audit or audit an 6/81 .no Law the under established Authority Monetary Maldives the means" – MMA) "7 ( .(Act Authority Monetary Maldives( ,reviews to limited not but including ,procedures or services any means” – services related) “8 ( an which procedures or services related audit and accounting other and ,advisory ,compilations other or ,systems accounting and audit ,records ,books the of respect in bank a for performs auditor .bank the of information financial POLICY OF STATEMENT :II PART of process the including ,audits external that ensure to is regulation this of purpose The – Purpose 1: banks of shareholders to and MMA the to assurances provide ,auditors appointing and engaging :following the about ;reported being information financial of reliability and completeness ,accuracy) a ( ;systems accounting and management risk internal of adequacy) b ( directives other and regulations ,Act the of provisions with ,principle in and fact in ,compliance) c ( ;MMA the by issued and; bank a about concern of be should or are that matters any of reporting timely) d ( .auditor external the of ,principle in and fact in ,independence) e ( :to bank a of directors of board the of responsibility the is It – Responsibility 2: financial audited prepare to auditor external independent ,qualified a engage and appoint) a ( ,bank the for statements ,MMA the to information required other and statements financial audited the submit) b ( and ,statements financial its publish) c ( the of oversight supervisory the to relevant information any of MMA the inform promptly) d ( .bank REQUIREMENTS SPECIFIC AND IMPLEMENTATION :III PART of respect in apply shall requirements minimum following The – Requirements Minimum 1: :otherwise requires ,bank a to order written by ,MMA the unless audits external

6 of as year each auditor external an by made be to accounts its of audit an cause shall bank each) a ( ;end year financial s’bank each of date the MMA the to submitted be shall management to letter s'auditor the with along report audit the) b ( months) four (4 than later event no in and ,available becomes it after days) thirty (30 than later not ;year financial the of end the after external its in change any of ,days) fourteen (14 within ,writing in MMA the notify shall bank a) c ( ;auditor – exists situations following the of any ,time any at ,if) d ( imminently ,insolvent capital is bank a that believe to cause reasonable is there) i ( or ,illiquid or ,insolvent depositors of decisions or interests the prejudice materially may that exist matters if) ii ( or ,bank a of creditors and or ,principle in or fact in ,regulations or laws any of breach in is bank a if) iii ( the to concern of be should reasonably or may which matters other any are there if) iv ( ,MMA aware becomes or ,is who person any by MMA the to promptly reported be shall matter such and; information or circumstances such ,of bank the for papers work audit the to access full MMA the to provide shall auditor s’bank the) e ( .request such of days 10 within to meeting a require may MMA – MMA and auditor external the ,bank the between Meeting 2: of receipt s’MMA after ,auditor external its and bank a of management executive the with held be being meeting such of purpose the; management to letter' auditors the and report audit annual the .issues outstanding or questions any clarify and audit the of conclusions and findings the review to :may bank No – Actions Prohibited 3: or qualifications the to writing in objected has MMA the if auditor an engage or appoint) a ( ;auditor that of engagement or appointment s’MMA without years consecutive) four (4 than more for auditor same the engage or appoint) b ( ;permission same that if bank a to services consulting or advisory provide to auditor an engage or appoint) c ( preparation the to thatservicesrelated except ,audit annual s’bank the conduct to engaged is auditor or; prohibited not are taxes profit s’bank a of provide or ,amount or terms the of irrespective ,auditor its to assets other or money any lend) d ( or transaction other any into enter or auditor its to services banking other or accounts deposit other or ,service banking ,account deposit ,loan such if auditor its with arrangement business .terms preferential on is arrangement business or transaction

7 form the in reports MMA the to submit shall auditor its and bank Each .Requirements Reporting 4: a by taken be shall actions following the ,minimum a At .require may MMA the as frequency and :auditor its and bank the from letter accompanying the and report audit the after days) thirty (30 Within – bank The) a ( months) four (4 than later event no in but ,available become bank the of management to auditor :shall bank a ,year financial the of end the after a for officer executive chief the and board the of chairman the by signed statement a submit) 1 ( that stating ,bank foreign a of branch a for auditor internal and director managing the by or ,bank – has bank the and regulations all and Act the with ,principle in and fact in ,complied materially) i ( ;MMA the by issued directives has directors of board the and bank the of risks operating and financial the identified) ii ( and; risks such covering policies adequate adopted ;risks the manage to procedures and systems necessary the implemented) iii ( of respect in exist interest of conflicts possible or actual any whether stating statement a submit) 2 ( and; auditor its of independence the a MMA the by specified content and form a in circulation general of newspaper a in publish) 3 ( .end￾year financial recent most the for expenses and income of statement a and condition of statement from letter accompanying the and report audit the after days) thirty (30 Within – auditor The) b ( months) four (4 than later event no in but ,completed are bank the of management to auditor the the to and bank the to report a submit shall bank a of auditor the ,year financial the of end the after :whether specifically stating auditor the by signed MMA are bank the of systems reporting financial and ,control internal ,management risk internal the) 1 ( ;followed being and adequate and regulations applicable and Act the with ,fact in and principle in ,compliance in is bank the) 2 ( and; MMA the by issued directives in are and MMA the by issued regulations with comply losses loan potential for provisions) 3 ( and ,collection or repayment of probability ,quality the to regard giving after adequate fully fact .portfolio loan s'bank the in inherent losses potential

8 MEASURES CORRECTIVE :IV PART person other any or auditors its ,administrators its ,bank a If – sanctions and measures Remedial 1: the with comply to fails or ,regulation this of provision any violates bank the with associated more or one any take may MMA the ,regulation this in requirements reporting and instructions Such .Act the in provided as penalties administrative any impose or measures corrective the of – following the of all or any ,include may penalties and measures ;bank the to warning a Issue) a ( and unsafe any and violations correcting for bank the with agreement informal an into Enter) b ( ;conditions and practices unsound to further and actions particular from desist and cease to it requiring bank the to order an Issue) c ( ;conditions and practices unsound and unsafe any and violations correct to actions affirmative take ;funds capital additional inject to directors of board the Require) d ( foreign any on limitations imposing including bank the of activities of scope the Restrict) e ( borrowing ,deposits of acceptance ,investments of making ,credit of granting ,activities exchange ;appropriate deem may MMA the as activities other or ,money of ;MMA the of facilities credit the to access Suspend) f ( ;officers executive or directors any of removal or suspension the Require) g ( ;conservator a or advisor an Appoint) h ( or officers executive ,directors its of any or bank the on penalty administrative an Impose) i ( ;managers executive ,directors any ,allows law the as ,from restitution seek and liable personally Hold) j ( or; bank the of shareholders major or officers .license s'bank the revoke or Suspend) k ( ,Stability Financial of Head the to addressed be should regulation this to relating Questions .Authority Monetary Maldives

ގެޒެޓުގެ އިޢުލާންތަކާއި ދެންނެވުންތަކާއި އެންގެވުންތައް ހިލޭ ދުރަށް ފޮނުއްވާ ގަޑިތައް .1 .2 އާދީއްތައިން ބުރާސްފަތި ދުވަހުގެ ނިޔަލަށް - ކޮންމެ ދުވަހަކު މެންދުރު 12:30 ން 1:00 އަށް ، ހަވީރު 3:30 ން 4:00 އަށް ހުކުރު ދުވަސް - ހެނދުނު 11:00 ން 11:30 އަށް ، ހަވީރު 3:30 ން 4:00 އަށް ހޮނިހިރު ދުވަސް - ހަވީރު 3:30 ން 4:00 އަށް ހަފުތާގެ ކޮންމެ ރެއަކު 7:00 ން 7:45 އަށް .air on friend your...