G1-2023 - Status of previously issued guidance notes

P O Box 427 Pretoria 0001 South Africa
370 Helen Joseph Street Pretoria 0002
+27 12 313 3911 / 0861 12 7272 www.resbank.co.za 1 Ref.: 15/8/1/2 G1/2023 To: All banks, branches of foreign institutions, controlling companies, eligible institutions and auditors of banks or controlling companies Guidance Note 1/2023 issued in terms of section 6(5) of the Banks Act, 1990:
Status of previously issued guidance notes Executive Summary Banks Act Guidance note 1/2008 dated 7 May 2008 established the process whereby banks (including branches of foreign institutions), controlling companies and auditors of a bank or controlling company will be informed of the status of previously issued guidance notes. In order to ensure that banks (including branches of foreign institutions), controlling companies, and auditors of a bank or controlling company are in no doubt as to which previously issued guidance notes remain effective, the first guidance note of a particular year will serve as a notification to all institutions indicating which previously issued guidance notes remain effective for the ensuing year.

1. Introduction
   1.1 All previously issued guidance notes are deemed to be
   withdrawn/terminated/replaced except if such a guidance note is to remain effective and is then accordingly confirmed in Guidance note 1 of that year. The guidance notes that remain effective will retain their original numbers and dates.
2. Effective Guidance Notes
   The guidance notes listed below remain effective. Accordingly, banks, controlling companies, eligible institutions and auditors of a bank or controlling company are hereby requested to retain copies of these guidance notes. Guidance Note Brief Details
   2.1 Banks Act Guidance Note 1/2008 Status of previously issued guidance notes
   2.2 Banks Act Guidance Note 2/2008 Position statement on personal account
   trading
   2.3 Banks Act Guidance Note 5/2008 Electronic communication with this Office

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2.4 Banks Act Guidance Note 7/2008 Development programme for directors of
banks
2.5 Banks Act Guidance Note 8/2008 Financial Action Task Force call for
enhanced scrutiny of transactions with certain jurisdictions and United Nations sanctions in relation to proliferation of weapons of mass destruction
2.6 Banks Act Guidance Note 9/2008 Stress testing
2.7 Banks Act Guidance Note 3/2010 Performing market risk hypothetical
backtesting by internal models approach
(IMA) banks
2.8 Banks Act Guidance Note 3/2011 Covered bonds
2.9 Banks Act Guidance Note 5/2013 Foreign Exchange Settlement Risk
2.10 Banks Act Guidance Note 3/2014 Effective risk data aggregation and risk
reporting
2.11 Banks Act Guidance Note 4/2014 Application process in respect of the
proposed adoption of the internal ratings￾based approach for the measurement of banks’ credit risk exposure in respect of positions held in the banking book
2.12 Banks Act Guidance Note 5/2014 Outsourcing of functions within banks
2.13 Banks Act Guidance Note 6/2014 Application process for approval to adopt
the standardised approach or alternative standardised approach for measuring banks’ operational risk exposure
2.14 Banks Act Guidance Note 3/2015 Application process to adopt the advanced
measurement approach for measuring banks' operational risk exposure
2.15 Banks Act Guidance Note 4/2015 This guidance note outlines the
expectations of the Bank Supervision
Department (BSD) of the South African
Reserve Bank (the Bank) with respect to the internal capital adequacy assessment process (ICAAP) of banks, controlling companies, and branches of foreign institutions – hereinafter referred to as ‘banks’
2.16 Banks Act Guidance Note 3/2016 Credit risk and accounting for expected
credit losses
2.17 Banks Act Guidance Note 4/2016 Instruments qualifying as high-quality

3 liquid assets
2.18 Banks Act Guidance Note 5/2016 Corporate governance principles for banks
2.19 Banks Act Guidance Note 7/2016 Capital arbitrage transactions
2.20 Banks Act Guidance Note 3/2017 Audit implications of the expected credit
loss model for the auditors of banks
2.21 Banks Act Guidance Note 4/2017 Cyber Resilience
2.22 Banks Act Guidance Note 6/2017 Loss absorbency requirements for
Additional Tier 1 and Tier 2 capital
2.23 Banks Act Guidance Note 5/2018 Cloud computing and the offshoring of
data
2.24 Banks Act Guidance Note 8/2020 Continued provision of a committed
liquidity facility and the introduction of a restricted-use committed liquidity facility by the South African Reserve Bank
2.25 Banks Act Guidance Note 5/2021 Supervisory Guidelines for the Advanced
Measurement Approach (AMA)
2.26 Banks Act Guidance Note 4/2022 Proposed implementation dates in respect
of specified regulatory reforms
2.27 Banks Act Guidance Note 5/2022 Supervisory guidelines for matters related
to the prevention of banks or controlling companies being used for any money laundering or other unlawful activity (Effective implementation of group controls)
2.28 Banks Act Guidance Note 6/2022 Supervisory guidelines for matters related
to the prevention of banks or controlling companies being used for any money laundering or other unlawful activity (Business risk assessment)
2.29 Banks Act Guidance Note 7/2022 Guidelines for matters related to the
prevention of banks or controlling companies being used for any money laundering or other unlawful activity in respect of correspondent banking relationships
2.30 Banks Act Guidance Note 8/2022 Effective date for the capitalisation
requirements of the revised market risk and credit valuation adjustment frameworks

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2.31 Banks Act Guidance Note 9/2022 Matters related to the credit risk models of
banks using the internal ratings-based
(IRB) approach (IRB banks), to calculate minimum required capital and reserve funds for their credit risk exposures
2.32 Banks Act Guidance Note 10/2022 Supervisory guidelines for matters related
to the prevention of banks or controlling companies being used for any money laundering, terrorist financing or other unlawful activity
2.33 Banks Act Guidance Note11/2022 Operational risk practices – completion
and submission of the form BA 410
2.34 Banks Act Guidance Note 12/2022 Guidelines related to risk management
practices concerning proliferation financing risk.
3. Acknowledgement of Receipt
3.1 Kindly ensure that a copy of this guidance note is made available to your
institution’s auditors. The attached acknowledgement of receipt duly completed and signed by both the chief executive officer of the institution and the said auditors, must be returned to the Prudential Authority at the earliest convenience of the aforementioned signatories. Fundi Tshazibana Chief Executive Officer Date:
The previous guidance note issued was Banks Act Guidance note 12/2022, dated 28 October 2022.