Article Content
Section 1 Self-Inspection System
| Article 14 | Financial holding companies and the banking business shall establish a self-inspection system, wherein the management shall designate the units executing the legal compliance system, risk management system, information security system, or units possessing the second-line functions to supervise the formulation of the contents and procedures for self-inspections and to review the execution of self-inspections by each unit.
Each business, finance, asset safekeeping, and information technology unit, as well as foreign business units of a banking business, shall conduct a general self-inspection at least once every six months and a special self-inspection at least once every month. However, for a month in which a general self-inspection has been conducted, a general business audit has been conducted by the internal audit unit (including the internal audit unit of the parent company), a full-scope examination has been conducted by financial examination authorities, or a self-assessment on legal compliance matters has been performed, the special self-inspection for that month may be waived. If a banking business that has been approved by the competent authority to adopt a risk-based internal audit system, the banking business may determine the frequency, focus, and scope of general and special self-inspections based on the results of risk assessments and implement them after obtaining approval from the board of directors.
A financial holding company shall conduct a self-inspection of its internal control system at least once every year and supervise its subsidiaries in conducting the self-inspection matters of the internal control system specified in the preceding paragraph.
For the self-inspection affairs mentioned in the preceding two paragraphs, the head of the unit shall assign a person of another duty to conduct the audit and be kept secret.
The results of self-inspections mentioned in Paragraph 2 and 3 shall be made as working papers and shall be preserved together with the self-inspection or internal audit reports and relevant materials for no less than five (5) years.
A financial holding company or banking business shall track the improvement status of the deficiencies identified during the self-inspections of each unit. |
| Article 15 | Financial holding companies and the banking business shall conduct annual self-inspection programs and continuously provide appropriate training courses for personnel conducting self-inspections in accordance with the nature of each department. |