The Central Bank seeks to promote the effective and efficient development and functioning of the banking system. To this end, Banks must have strong internal control frameworks and establish permanent, independent and effective compliance and internal audit functions.

In introducing this Regulation and the accompanying Standards, the Central Bank intends to ensure that Banks’ approaches to internal controls, compliance and internal audit are in line with leading international practices.

This Regulation and the accompanying Standards must be read in conjunction with the Central Bank Regulation and Standards on Corporate Governance in Banks, which establish the overarching prudential framework.

This Regulation and the accompanying Standards are issued pursuant to the powers vested in the Central Bank under the Central Bank Law.

Where this Regulation, or its accompanying Standards, include a requirement to provide information or to take certain measures, or to address certain items listed at a minimum, the Central Bank may impose requirements that are additional to the listing provided in the relevant Article.