INTERNAL CONTROL & COMPLIANCE IN BANK

2. Internal
Control &
Compliance
(An Overview)

3. Internal Control Defined
1)Reliability of financial reporting
2)Compliance with applicable laws and
regulations
3)Effectiveness and efficiency of operations
An entity’s system of internal control
consists of policies and procedures
designed to provide management with
reasonable assurance that the
company achieves its objectives and
goals including:

4. Meaning of ICC
Internal control & compliance are
the processes, effected by the Board
of Directors, Senior Management and
all levels of personnel, designed to
provide reasonable assurance
regarding the achievement of
objectives in the effectiveness and
efficiency of operations, the
reliability of financial reporting and
compliance with applicable laws,
regulations and internal policies.

5. Reasonable Assurance
Reasonable assurance
involves two
considerations:
 The cost of the
entity’s internal
control should not
exceed the expected
benefits.
 Limitations exist in
any entity’s internal
control.

6. Meaning of ICC
In fact ,internal control
& compliance are the
reflection of Internal
Audit, Internal
Monitoring &
Compliance culture
of the Bank.

7. Internal Control Activities
Everyone has a role to
play with internal control
activities!
7
We all have responsibility.

8. Objective of ICC
The primary objective of
internal control &
Compliance is to help the
Bank to perform in a
sound and prudent
manner with its available
resources.

9. Objective of ICC
The main objectives of the
internal control & compliance
process are categorized as
under:
1) Performance Objective : It
relates to the effectiveness and
efficiency of the Bank in using
its assets and other resources
and protecting the Bank from
loss.

10. Objective of ICC
2) Information Objective :
It addresses the
preparation of timely,
reliable, relevant reports
needed for decision-
making and other financial
related disclosures.

11. Objective of ICC
3) Compliance Objective :
It demonstrates that all banking
activities are performed in
compliance with applicable laws,
rules and regulations of the
regulatory body and the bank’s
own policy, plan and
procedures.

12. Roles & Responsibilities of
Various Authorities :
1. Board of Directors (BoD):
2. Audit Committee
3. Risk Management Committee
4. CEO and Managing Director
5. Management Committee
(MANCOM)/SMT(Sr. Mgt.Team)

13. Internal Control System &
Risk Analysis Or Reporting
System of Bank
1 ) Departmental Control Function
Checklist (DCFCL) to be Maintained by
the Branch, Treasury.
2) Quarterly Operations Report (QOR)
3 ) Certificate of Documentation ie LDCL
(Loan Documentation Check List)
4) Self-Assessment of Anti-Fraud
Internal Controls (SAIC)

14. Departmental Control Function Check
List (DCFCL):
 Departmental Control Function Check
List (DCFCL –daily(22), weekly(07),
monthly (16)and quarterly(05)) should
be prepared and duly signed by the
concerned person and reviewed by the
designated person as per circular and
preserve it properly for further
audit/review by internal auditor,
controlling office, Bangladesh Bank
Inspection Team, etc.

15. VIEW
DCFCL

16. VIEW
CIRCULAR

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