Regulatory Alerts2025-06-10
Internal Audit Regulation CBS_REG_04
The Central Bank of Somalia mandates all licensed banks, including foreign branches and subsidiaries, to establish an independent internal audit function led by a professionally qualified Internal Auditor. The regulation requires the auditor to maintain direct reporting lines to the board’s Audit Committee, execute annual risk-based audit plans covering all operations, and deliver quarterly written reports on systemic integrity, compliance, and financial controls. Banks must ensure immediate written notification to the Central Bank regarding insolvency risks, regulatory non-compliance, material operational changes, fraud or AML failures, and significant board or senior officer disruptions.
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