Regulatory Alerts2017-01-01
Recommendation H regarding the internal control system in banks
The Polish Financial Supervision Authority (KNF) issued Recommendation H to establish updated good practices for internal control systems in banks, aligning regulatory expectations with current laws and international standards. The document mandates that banks implement a three-lines-of-defense model, clearly distinguishing between risk management and internal control functions while strengthening the compliance and internal audit units. Banks are required to fully adopt these provisions by December 31, 2017, ensuring proportional application particularly for cooperative banks.
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