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Internal Control

Structure, instruments, authorities of the Bank’s internal controls

Internal control system includes procedures of duly informing of BTA Bank JSC bodies on any material deficiencies and weak points of control detailing activities taken or to be taken and which shall efficiently respond any risks.

Internal control is the process made by the Board of Directors, Internal Audit, Compliance Controller, Management Board, departments and officers of BTA Bank JSC and their activities shall reasonably enable achievement of BTA Bank JSC aims, including:

  • BTA Bank JSC performance efficiency;
  • security of assets, information and effective use of BTA Bank JSC resources;
  • completeness, reliability and authenticity of financial and management reporting of BTA Bank JSC;
  • compliance with the laws of the Republic of Kazakhstan and internal documents of BTA Bank JSC; and
  • risk minimization by introducing and maintaining an adequate risk management system.

Internal control system is a complex of policies, processes and procedures, code of conduct and actions facilitating efficient and rational activities which enable BTA Bank JSC to duly respond to material risks in achieving its aims.

Internal control system includes the following interrelated components:

  • control environment;
  • risk assessment;
  • internal control procedures;
  • system of information support and exchange; and
  • monitoring and assessment of internal control system efficiency.

In BTA Bank JSC there is differentiation of competencies of the bodies included into internal control system subject to their role in development, approval, application and assessment of internal control in accordance with the laws, Charter, Corporate Governance Code and internal documents of BTA Bank JSC.

Board of Directors and Management Board create control environment which is to demonstrate importance of internal control and observance of ethical norms to the staff at all management levels and activities of BTA Bank JSC.

The Board of Directors is responsible for establishment of internal control system in BTA Bank JSC. The Board of Directors takes measures to improve internal control system and regularly monitors its efficiency.

The Board of Directors applies risk-informed approach for internal control efficiency and its assessment.

Management Board is responsible for development and introduction of the Policy on internal control system as approved by the Board of Directors, improvement of internal control processes and procedures, reliable functioning of internal control system and monitoring of internal control system.

Heads of BTA Bank JSC departments subject to their functions are responsible for development, documentation, maintenance, monitoring and improvement of internal control procedures in their lines of BTA Bank JSC activities.

Some functions of internal control may be entrusted to special departments and some officers of BTA Bank JSC.

Internal control system is based on the following principles:

  • continuous functioning:

Continuous and due functioning of internal control system enables BTA Bank JSC duly determine any deficiencies which affect activities of BTA Bank JSC and avoid such in future.

  • reporting of all subjects of internal control system:

Quality of key functions performance is controlled by another subject of internal control system.

  • segregation of duties:

BTA Bank JSC tries to avoid duplicating control functions and such functions shall be segregated between BTA Bank JSC officers so that one and the same person would not perform functions related to approval of transactions with certain assets, accounting of transactions, security of assets and their inventory.

  • due approval of transactions:

BTA Bank JSC aims to establish order for approval of all financial and economic transactions by the authorized bodies and persons within their powers.

  • independence of Internal Audit and its functional reporting to the Board of Directors (through Audit Committee);
  • responsibility of all subjects of internal control employed by BTA Bank JSC for due performance of their key functions;
  • running of internal control on the basis of clear interaction of all bodies and departments of BTA Bank JSC;
  • continuous development and perfection:

Internal Control system shall be flexible and adaptable to any changes of both internal and external conditions of BTA Bank JSC functioning and new tasks.

  • timely informing on any material deficiencies and weak controls:

Bodies and departments of BTA Bank JSC shall duly inform bodies and/or persons authorized to take decisions on elimination of material deficiencies and weak controls.

Certificate of State Re-registration of Legal Entity, issued by the RK Ministry of Justice on 24 January, 2008