Regulatory Alerts2022-05-05
Prudential Standard for Internal Auditing of Institutions Licensed Under the Banking Act
The Eastern Caribbean Central Bank mandates that all licensed financial institutions establish and maintain an independent, risk-based internal audit function aligned with their size and complexity. The standard requires clear governance structures, including a dedicated Audit Committee and direct functional reporting for the Head of Internal Audit, to ensure unbiased oversight of financial reporting, internal controls, and risk management. Effective January 2020, it replaces prior guidelines by enforcing mandatory audit planning, outsourcing reviews, compliance monitoring, and five-year external quality assessments.
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