Banks?Internal Control System, the case of Albania

Albania, an EU candidate country, is approaching the EU Directives and Basel Principles via legislation and regulation framework. Related to banks internal control systems, structure and responsibilities, Albania has a new regulation On Internal Control System, dated on 02.09.2015. This regulation, has given requirements for setting up an effective internal control system and supporting arrangements by the three lines of defence model, a strong internal control system, including an independent and effective internal audit functions, as part of sound corporate governance, the banks management to take appropriate and timely corrective action in response to internal control weaknesses, the internal audit to provide vital assurance to banks board of directors and supervisory authorities with whom should be an enhanced two-way communication for discussing the risk areas identified, measures received, etc.