THE STATE BANK
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 486/2003/QD-NHNN
Hanoi, May 19, 2003
 DECISION
PROMULGATING THE REGULATION ON INTERNAL CONTROL AND INTERNAL AUDIT OF THE STATE BANK
THE STATE BANK GOVERNOR
Pursuant to Vietnam State Bank Law No. 01/1997/QH10 of December 12, 1997;
Pursuant to the Government’s Decree No. 86/2002/ND-CP of November 5, 2002 defining the functions, tasks, powers and organizational structures of the ministries and ministerial-level agencies;
At the proposal of the director of the General Control Department,
DECIDES:
Article 1.- To promulgate together with this Decision the Regulation on internal control and internal audit of the State Bank.
Article 2.- This Decision takes effect 15 days after its publication in the Official Gazette and replaces Decision No. 93/1999/QD-NHNN4 of March 20, 1999 promulgating the Regulation on internal control and audit of the State Bank.
Article 3.- The director of the Office, the director of the General Control Department, the heads of the units of the State Bank and the directors of the State Bank’s branches in the provinces and centrally-run cities shall have to implement this Decision.
 
GOVERNOR OF THE STATE BANK




Le Duc Thuy
 
REGULATION
ON INTERNAL CONTROL AND INTERNAL AUDIT OF THE STATE BANK
(Promulgated together with Decision No. 486/2003/QD-NHNN of May 19, 2003 of the State Bank Governor)
Chapter I
GENERAL PROVISIONS
Article 1.- Scope and subjects of application
This Regulation prescribes the organization of the work of internal control and internal audit in the State Bank’s system.
Article 2.- In this Regulation, the following phrases and terms are construed as follows:
1. Units mean departments, transaction offices, branches, non-business units and representative offices of the State Bank.
2. Internal control of the State Bank (called the internal control for short) means the inspection of work performance by each individual or unit, conducted by specialized control individuals or sections in units, in order to ensure the asset safety and efficient realization of the objectives set by each unit.
3. Internal audit of the State Bank (called the internal audit for short) means the independent study and assessment of the adequacy and efficiency of the internal control system; the truthfulness, accuracy and adequacy of information in financial statements or professional reports of the State Bank as well as the quality of assigned-task performance by units.
4. Double-control principle means a requirement in the task assignment at units that a work should be performed and inspected by at least two persons, thus ensuring the asset safety and work efficiency.
Article 3.- Objectives of the internal control and internal audit
1. To ensure the units’ compliance with the undertakings, policies and laws of the State, professional regulations and procedures of the State Bank, prevent violations of, or non-compliance with, laws and professional processes, which may lead to operation risks.
2. To ensure that each unit operate in line with the set orientations and its measures for organizing the task performance be effective and efficient.
3. To identify and assess the accuracy, adequacy and rationality of information in the units’ financial statements and professional reports.
4. To protect the asset safety and prestige of the State Bank.
5. To propose the State Bank Governor to amend and/or supplement the existing mechanisms and regulations or promulgate new ones in order to enhance measures to ensure the asset safety and raise operation efficiency.
Chapter II
INTERNAL CONTROL
Article 4.- Internal control must be regularly and constantly organized and conducted in each work of individuals, sections, divisions and leading officials at each unit.
Article 5.- Heads of units shall base themselves on the assigned functions and tasks to organize fully and efficiently internal control, and be answerable to the Governor for the quality of internal control activities at their respective units.
Article 6.- Contents of internal control activities
1. Promulgating working regulations applicable to unit leaders, specifying the powers and responsibilities of each leading official in the administration and handling of works. Unit heads shall authorize and assign responsibilities for maintaining the internal control work to each section or division in their units, with a view to comprehensively controlling their units’ operations.
2. Regularly, promptly and adequately disseminating the State’s regime documents on banking activities, the State Bank’s mechanisms, professional regulations and processes to all officials and employees in units.