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Governance
Our Performance Sustainability Statement Our Governance Our Numbers Other Information

The Statement on Internal Control highlights the significant features of the internal control
system of the Bank adopted by the Board throughout the financial year under review.

BOARD RESPONSIBILITY BOARD AUDIT COMMITTEE

The Board affirms its commitment to exercising the overall The Board Audit Committee (“BAC”) is a Board-delegated
responsibility in ensuring the establishment of an adequate and committee established to provide structured, systematic
effective internal control and risk management system within and independent oversight of the Bank’s governance, risk
the Bank. management, internal control system and financial reporting.
This oversight mechanism serves to provide confidence in the
In discharging its responsibilities, the Board ensures the integrity of these practices.
establishment of fundamental processes for reviewing the
effectiveness, adequacy and integrity of the internal control The BAC is guided by the Board Audit Committee Charter
system of the Bank. An adequate internal control system covers and the Terms of Reference in discharging its functions. The
the financial controls and non-financial controls relating to responsibilities of the BAC include providing the Board with
governance, operations, risk management and compliance with independent and objective advice on the adequacy of the
applicable laws, regulations, rules, directives, guidelines, as Management’s arrangements on the Bank’s values and ethics,
well as internal policies, processes and procedures. An effective governance, risk management, fraud, internal control system
internal control system includes an established and ongoing and compliance.
process for identifying, evaluating, managing and reporting
significant risks that may affect the achievement of the Bank’s The BAC meets on a scheduled basis to review audit and
business objectives and strategies. investigation reports prepared by the internal auditors, external
auditors and regulators. The BAC also reviews all Connected
The Board acknowledges its responsibility to periodically Party transactions and audit and non-audit related fees
review the adequacy and effectiveness of the internal control proposed by the external auditor. All significant and material
system in identifying, assessing and responding to risks and lapses highlighted by the internal auditors, external auditors and
changes in the Bank’s activities and operating environment that regulators are reported to the BAC for review and deliberations
could keep the Bank from achieving its objectives. during the financial year.

In addition, the Head of Division/Head of Department from
MANAGEMENT RESPONSIBILITY the auditable units are required to facilitate the BAC during
the deliberation of the audit reports and audit observations.
The Management is accountable to the Board and responsible
for implementing the processes of identifying, evaluating, The BAC deliberates on the outstanding audit observations to
monitoring and reporting the effectiveness of the internal ensure that the Management undertakes necessary remedial
control system, taking appropriate and timely corrective actions actions within the committed timeline.
as required during the financial year.
INTERNAL AUDIT
The Management has assured the Board that the Bank’s internal
control system is operating adequately and effectively in all The internal audit activity of the Bank is governed by Bank
material aspects. Negara Malaysia Guidelines on Internal Audit Function
of Licensed Institutions and the International Professional
Practices Framework (“IPPF”) formulated by the Institute of
Internal Auditors. The IPPF provides the basis for the internal
audit stakeholders such as the BAC, Senior Management and