Bank of China Brings Forward Five Measures to Intensify Internal Control

On November 30, BOC spokesmen Wang Zhaowen disclosed to the public that BOC had brought forward five mighty measures to intensify the internal control. He said, the improvement of internal control had been regarded as one of the fundamental tasks or basis for the healthy operation of Bank of China. BOC had strived to build the internal control system, continuously improved the related rules and regulations, scientifically optimized the operation processes, cultivated the employees consciousness of internal control and persistently enhanced supervision efficiency and therefore effectively prevent and remove financial risks, eliminate hidden security problems and reduce the possibility of cases occurrences.

Wang Zhaowen said that the following measures were adopted to build the internal control mechanism of Bank of China:

First, Strengthen the employee training and promote a culture of compliance. Regraded as equally important as business development, BOC strengthens the education on staff s compliance with rules and regulations and raises their consciousness of risk prevention. BOC has widely carried out employee training on compliance operation, and carried out "dynamic trainings in various forms according to the changes of jobs and the development of situation.

The trainings focus on deepening the understanding of newly established rules and regulations, helping the employees to establish a consciousness of observance and fulfillment of duties, and establishing a solid foundation for compliance operation, hence to fundamentally improve employees self-discipline on compliance operation.

Second, Intensify internal control and promote the integration of business processes. BOC continues to advance the works on subsequent supervision and inspection center to tier-2 branches and the retail loans center, so as to realize streamlined product management and centralized management. The Bank has also fastened the integration of professional resources of the inspection, internal control and compliance in tier-2 branches, studied and prepared the directive opinions on the supervision and audit of branches, and improved the ability to prevent violation cases and enhanced the supervision and inspection.

Third, Intensify the supervision on key business units, and positions and prevent operational risks. BOC has emphasized on intensifying the control of the organizations at basic level and key business units, key positions and key persons. BOC has regularly analyzed the case risks and paid special attention to the activities of key persons beyond the eight working hours .

Any person who is found for any abnormal actions such as purchasing lottery of large amount or speculating in the stock market or the exchange market, should be timely changed to other working position. Meanwhile, the compulsory vacation system and the deputy position system should be performed to the executives of banking institutions at basic level.

The video monitoring system should be carried out in the banking offices, which should be regularly checked and reported by dedicated personnel. It will control the tendency of an increasing occurrence of cases in the institutions at basic level.

Fourth, Establish a case notification system, strengthen case management and improve the capacity of preventing case risks. If any case is detected, the Head Office shall report the case to relative administrative authorities, based on investigation. BOC Head Office will promptly dispatch a working group to the branch where big case occurs, to supervise and urge the investigation and rectification.

BOC studies countermeasures against bank bills, guarantees and bank card services related frauds which are often done by intelligent professionals in group offence with increased frequency. BOC will summarize the characteristics, reasons and lessons from the cases, set time limit for rectification and prevent cases from happening.

Fifth. Build case prevention system. Risk prevention of financial cases is a long-term job. The multi-level system for preventing case risks should be established from the aspects of moral construction, system construction, IT system control and supervision mechanism. In conjunction with the problems and typical cases found in special case governance and comprehensive business inspection, BOC will strengthen the moral education to its employees so as to establish a correct value judgment and a concept of legality among them.

By means of enhancing the construction of rules and regulations on internal control, the employees will work and operate in accordance with the rules and regulations. Through the establishment of scientific information management system and the supervision and inspection system, and strengthening of the responsibility system, the employees can not and dare not commit an offence, hence to effectively prevent case risks and promote healthy development of business.

Wang Zhaowen emphasized that, the strengthening of internal control system couldn t be accomplished in short time. It must be regarded as a routine work, and requires unremitting efforts. BOC would improve the internal control measures through practice, enrich and improve the supervision methods, enhance the effectiveness of supervision, systematically ensure the stable operation of all the branches, prevent frauds of bank practitioners, prevent moral risks and guarantee the orderly development of business and employees.