Article Content
Chapter 2 Compliance with Laws and Regulations and Enhancement of Internal Management
| Article 3 | A bank shall establish a legal compliance system, assign a certain department to be responsible for the programming management, and execution of such system, establish consultation, coordination, and communication systems, provide legal training to each department, and assign personnel to serve as legal compliance executives responsible for implementing legal compliance matters in order to ensure the efficiency of the legal compliance system and to enhance the function of self-discipline. |
| Article 4 | A bank shall establish a complete internal control system and implement it effectively. To ensure an appropriate and effective internal control system be established and maintained, the board of directors shall take the ultimate responsibility. The management shall be in charge of implementing business strategies and policies approved by the board of directors, developing a procedure sufficient to identify, assess, supervise, and control the bank's risk, and establishing an appropriate and effective internal control system. |
| Article 5 | The internal control systems of a bank shall cover all operational activities, including setting up a clear organizational system, departmental duties, definite authorization, delegation of responsibilities as well as policies and operating procedures of relevant services. |
| Article 6 | To ensure the internal control system continuously to function effectively, a bank shall establish an internal audit system to assist the management in auditing and assessing whether the internal control system is operating effectively, and providing recommendations for improvement timely.
A bank shall establish an audit departmentsubordinated to the board of directors. The audit department shall implement internal audit tasks with a impartial and independent attitude, and report to the board of directors and supervisors regularly. |
| Article 7 | The management of a bank shall pay special attention to the internal audit department and its personnel, fully empower them and urge them to conduct audits effectively, evaluate problems of the internal control system and assess the efficiency of operations to ensure that such a system can be carried out effectively on a continuous basis so as to ensure a sound corporate governance system. |
| Article 8 | A bank shall set up a self-audit system. Personnel of operation, asset management, and information department shall mutually audit each other's business implementation at a frequency prescribed by the competent authority. Personnel shall be assigned to supervise the implementation of the self-audit system to investigate the operational deficiencies as soon as possible, and rectify such deficiencies timely. |
| Article 9 | In order to effectively utilize internal and external audit reports and control functions provided, a bank shall continuously follow up and evaluate the improvement referred to the opinions or deficiencies audited by the financial inspection authority, the CPA, or the internal audit department. |