Banks and financial institutions get a binding regulatory order not to continue audit of their operations with the listed audit firms if delisted by the Financial Reporting Council (FRC).
Bangladesh Bank (BB) issued Tuesday a circular that says the BB published a list of 39 Chartered Accountant Firms eligible for auditing operations of banks and finance companies.
The audit firms have been enlisted by FRC and BB. After an audit firm being appointed as an external auditor in any bank or finance company, if the registration of the Engagement Partner of the aforesaid firm is repealed or postponed by FRC, the respective bank or finance company will consider the matter "on a real-time basis and stop the engagement of that partner instantly".
To continue the remaining audit formalities, the appointing bank or finance company, in consultation with the Managing/Senior partners of the appointed audit firm, will take necessary action to engage another partner of that firm registered or enlisted with FRC.
"But all other instructions of the earlier circular regarding the matter issued on February 05, 2024 will remain unchanged," reads the latest regulatory firman.
This circular has been issued by the central bank in exercise of its power conferred on it under section-39(1) of the Bank Company Act 1991 (Amended up to 2023) and section-37(1) of the Finance Company Act 2023 to fulfill the purpose of section 31(1) of the Financial Reporting Act 2015.
The instruction will come into force with "immediate effect".
In another circular, the central bank directed banks to report refunded import payments through Online Ticketing Module of OIMS under the Ticket Category titled 'Refund of Import Payments' instead of emails.
Director of BB's foreign exchange policy department (FEPD), which issued the circular, Md. Sarwar Hossain said banks used to report to BB about the refunded import payments through emails. "Now they have to report it through e-ticketing system."
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