Bank Compliance Audit is a crucial supervision mechanism for financial institutions in Georgia. It involves a comprehensive examination of a bank's activities to determine its compliance with effective legislation, National Bank of Georgia regulations, and international banking standards. The banking sector in Georgia is highly regulated, making an audit not just a voluntary "health check" but often a mandatory requirement. Audits cover critical areas such as anti-money laundering, consumer protection, operational risk management, and corporate governance. The Legal.ge platform connects you with qualified lawyers and auditors specializing in the field of banking compliance, helping you effectively manage regulatory risks.
What does the Bank Compliance Audit service cover?
Bank compliance audit involves complex procedures aimed at identifying deficiencies and outlining ways to correct them. The service includes: in-depth checking and testing of the AML/CFT system; auditing consumer protection and transparency standards; revision of personal data protection policies; determining compliance of lending and risk assessment procedures; and evaluating internal control mechanisms and corporate ethical norms. Auditors also check the bank's readiness for expected inspections from the National Bank (NBG). At the end of the service, the client receives a detailed report reflecting all discovered non-compliances and providing specific recommendations for their elimination.
Common real-world scenarios
Banking compliance audits are often needed in specific circumstances. For example, when a bank is preparing for a planned or unplanned inspection by the National Bank of Georgia and wants to identify potential flaws beforehand. A second scenario is the implementation of a new banking product or service (e.g., digital banking), which requires additional risk assessment and compliance confirmation. It is also common for a bank undergoing reorganization, merger, or change of ownership to need a complete legal and compliance "Due Diligence." Another important scenario is obtaining international ratings or attracting foreign investment, where an independent compliance audit is a primary prerequisite for gaining trust.
Georgian Legal Framework
The banking audit process in Georgia is regulated by the Law of Georgia on the Activities of Commercial Banks, defining the obligations of banks regarding internal and external control mechanisms. The Order of the President of the National Bank of Georgia on Approving the Corporate Governance Code for Commercial Banks, setting high standards for ethics and transparency, is vital. The Law of Georgia on Facilitating the Prevention of Money Laundering and Terrorism Financing also applies. Supervisory guidebooks issued by the National Bank serve as the main orientation for conducting audits. The legislation requires that the bank have an independent compliance function subject to periodic external review.
Step-by-step process when working with a specialist
The compliance audit process begins with a planning stage defining the scope and priorities of the audit. In the first stage, a remote study of documentation (Desktop Review) occurs, including internal policies, orders, and procedures. In the second stage, an on-site visit takes place where auditors conduct interviews with staff and check real operations. In the third stage, data analysis and deficiency identification are performed. In the fourth stage, a preliminary report is prepared and discussed with bank management. The process ends with the issuance of a final audit conclusion and the development of a "Remediation" plan. The specialist ensures the audit is conducted with full objectivity, confidentiality, and professional ethics.
Why choose Legal.ge?
Banking compliance audit requires high-level expertise combining legal, financial, and auditing knowledge. On the Legal.ge platform, you will find specialists with years of experience working in the Georgian banking sector and good familiarity with National Bank requirements. Our experts will help you not only find flaws but also optimize your business processes, increasing your organization's sustainability and reliability. Find your auditing partner on Legal.ge and be at ease before regulatory inspections. Our platform ensures access to only verified and reliable professionals.
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