Financial Crime World

Audit Committee in Operation: A Study of Popular Credit of Algeria

In a significant move to enhance its operations, Popular Credit of Algeria (PCA) has established an Audit Committee to oversee its activities. The committee is responsible for ensuring the effectiveness of internal control systems and risk management practices within the bank.

Governance Structure

As part of its governance structure, the PCA Audit Committee reports directly to the Board of Directors, reflecting a hierarchical relationship that emphasizes accountability and transparency.

Establishment of Key Committees

Overview

The PCA has established various committees in response to regulatory requirements and recommendations from international organizations such as the Basel Committee. These committees play a crucial role in promoting good governance practices, risk management, and regulatory compliance within the bank.

Key Committees

Ethics Committee (2009)

  • Ensures compliance with good conduct and ethics rules within the bank
  • Reviews cases of professional misconduct
  • Organizes training sessions for staff
  • Validates updates to the bank’s code of conduct

Project Direction (2013)

  • Focuses on implementing regulatory requirements related to internal control systems
  • Exercises permanent controls over all bank activities and businesses

Banking Strategy Committee (2016)

  • Defines the bank’s development strategy through strategic plans
  • Oversees the achievement of strategic objectives

Risk Committee (2017)

  • Monitors and measures risks faced by the bank
  • Provides recommendations to improve risk management practices

Information Systems Division (2018)

  • Designs, manages, and implements the bank’s policy on information systems
  • Ensures development, modernization, consistency, and security of information systems

Regulatory Compliance

The PCA has demonstrated its commitment to regulatory compliance by implementing key recommendations from international organizations such as the Basel Committee. The bank’s internal control system is designed to ensure effective management of risks and adherence to regulatory requirements.

Conclusion

This study highlights the importance of establishing an Audit Committee within a financial institution to promote good governance practices, risk management, and regulatory compliance. By analyzing the PCA’s experience, we can gain valuable insights into the effectiveness of such committees in enhancing operational efficiency and reducing risks.