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Regulations on Auditing and Supervision of Financial Institutions in New Sudan
The Central Bank of New Sudan (CBNS) has established regulations for auditing and supervision of financial institutions to ensure their stability and soundness. These regulations outline the duties and responsibilities of auditors, meetings between the CBNS, auditors, and financial institutions, confidentiality requirements, information to be furnished by financial institutions, publication of information, penalties for non-compliance, inspection of financial institutions, and powers of the CBNS after inspection.
Auditor’s Duties
Auditors play a crucial role in verifying the accuracy of returns and reports submitted to the CBNS. Their duties include:
- Verifying the accuracy of returns and reports submitted to the CBNS
- Submitting a report on specific matters related to financial institution operations
- Entitlement to remuneration for these additional duties
Meetings with CBNS, Auditors, and Financial Institutions
The CBNS may arrange trilateral meetings (CBNS, auditors, and financial institutions) to discuss supervisory responsibilities. Additionally, the CBNS can hold bilateral meetings with auditors of financial institutions.
- Trilateral meetings: CBNS, auditors, and financial institutions
- Bilateral meetings: CBNS and auditors
Confidentiality
Auditors are not bound by confidentiality obligations when communicating in good faith with the CBNS regarding relevant information or opinions related to the CBNS functions.
- No duty or confidentiality shall be contravened by reason of the auditor’s communication in good faith with the CBNS
- Relevant information or opinions related to the CBNS functions
Information to be Furnished by Financial Institutions
Financial institutions are required to furnish the CBNS with periodic returns, audited balance sheets, and profit and loss accounts.
- Periodic returns: submitted to the CBNS
- Audited balance sheet: prepared within two months after the end of its financial year
- Profit and loss account: included in the audited balance sheet
Publication of Information
The CBNS may publish information or data furnished by financial institutions, except if it discloses confidential affairs. No information will be published without consent from the institution or its customer.
- Publication of information: allowed with certain restrictions
- Confidential affairs: not to be disclosed
- Consent required from the institution or its customer
Penalties for Non-Compliance
Failure to comply with subsection (1) of this section will result in a fine of 0.5% of the total deposit liabilities of the financial institution per month in default.
- Failure to comply: results in a fine
- Total deposit liabilities: used as a basis for the fine
Inspection of Financial Institutions
The CBNS may conduct periodic or discretionary inspections of financial institutions and their books and accounts.
- Periodic inspections: conducted by the CBNS
- Discretionary inspections: also conducted by the CBNS
- Books and accounts: subject to inspection
Powers of CBNS after Inspection
If the CBNS finds that a financial institution’s affairs are detrimental to depositors’ interests or prejudicial to the bank’s functions, the CBNS may issue orders as necessary.
- Powers of the CBNS: exercised after inspection
- Detrimental to depositors’ interests: grounds for action by the CBNS
- Prejudicial to the bank’s functions: also grounds for action by the CBNS