Guidance for the Submission of the Internal Audit Report on the Internal Capital Adequacy Assessment Process (ICAAP)

CENTRAL BANK OF
TRINIDAD & TOBAGO
Eric Williams Plaza, Independence Square,
Port of Spain, Trinidad and Tobago
Postal Address: P.O. Box 1250
Telephone: (868) 621 CBTT (2288), 235 CBTT (2288) Fax: (868) 612-6396 E-Mail: info@central-bank. org. tt Website: www.central-bank.org.tt April 1, 2026 CIRCULAR LETTER TO:
Licensees and Financial Holding Companies under the Financial Institutions Act, Chap 79:09 The Bankers Association of Trinidad and Tobago Institute of Chartered Accountants of Trinidad and Tobago REF: CB-OIFI-992/2026 GUIDANCE FOR THE SUBMISSION OF THE INTERNAL AUDIT ("IA") REPORT ON THE INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS ("ICAAP") The Cenb-al Bank of Trinidad and Tobago ("Central Bank") implemented the Basel II/III Pillar 2 Supervisory Review and Evaluation Process ("SREP") of licensees' and financial holding companies' ICAAP via the Fmancial Institutions (Capital Adequacy) Regulations 2020, the Central Bank's ICAAP Guidelme ("Guidelme") November 2020, and Circular Letter rem: CB-OIFI-3410/2022. Specifically, Section 9. 6(f) of the Guideline requires fmaiicial mstitutions to submit an Internal Audit ("IA") Report on the ICAAP along with the ICAAP submission. The Central Bank has taken note of the banking industry's representation regarding the timing of submission of the IA Report with the ICAAP as well as the requirement for clarity on the frequency of submitting IA Reports. Accordingly, the Central Bank now advises that -
i. For domestic systemically important banks, FHCs and other banking
groups required to submit an ICAAP to the Central Bank annually, an IA Report must be submitted every two (2) years provided that a 'satisfactory' or higher rated LA report is obtained. If the IA Report on the ICAAP is rated lower than 'satisfactory' an annual IA Rq?ort on the ICAAP must be submitted until at least a 'satisfactory' IA Report is obtained. 11. 111. IV. For commercial banks and selected non-bank financial institutions required to submit the ICAAP every two (2) years, the IA Report will be required for each ICAAP submission. For all other non-banks which are required to submit the ICAAP every three (3) years, the IA Report wUl be required for each ICAAP submission. For i. to iii. above, the IA Report must be submitted to the Central Bank within six (6) months of the date of the submission of the ICAAP ... II

CIRCULAR LETTER TO:
Licensees and Financial Holding Companies under the Financial Institutions Act, Chap 79:09 The Bankers Association of Trinidad and Tobago Institute of Chartered Accountants of Trinidad and Tobago April 1, 2026 The Centi-al Bank tmsts that the above provides clarification on the timing and frequency of submission of the IA Report on the ICAAP and we anticipate your usual cooperation. Please direct any further queries you may have to Baselconsultation central￾bank-or . tt Please be guided accordingly. Yours sincerely c^Af Michelle Francis-Pantor INSPECTOR OF FINANCIAL INSTITUTIONS