The Central Bank of Sri Lanka (CBSL) is actively overseeing the ongoing situation concerning National Development Bank PLC (NDB) in light of a recent internal fraud revelation.
CBSL has announced that, in collaboration with NDB, plans are being finalized to engage a prominent international firm specializing in forensic audits. This firm will include experts from abroad to conduct a thorough investigation into the incident. The audit will not only focus on the fraud itself but will also evaluate any shortcomings in compliance with regulatory standards regarding control, oversight, and governance during the period when the fraudulent activities occurred. The forensic audit is anticipated to begin soon, and CBSL will receive updates on its progress, including interim findings and the final report. CBSL will engage directly with the auditors as deemed necessary throughout the audit process.
Simultaneously, CBSL has instructed NDB to implement immediate and effective measures to enhance its internal controls and governance frameworks, particularly targeting previously identified weaknesses. Additionally, NDB is required to arrange for an independent external review to evaluate the sufficiency and efficacy of its policies, procedures, systems, and internal controls.
NDB is currently compliant with all regulatory standards concerning capital and liquidity. CBSL is maintaining close and ongoing communication with NDB’s Board and management, as well as other pertinent stakeholders. The central bank is prepared to take further actions if necessary to protect depositors’ interests and ensure the overall stability of the financial system. There is currently no indication that any other regulated financial institution has incurred losses related to the incident at NDB, and the public is urged to disregard any misleading claims made in various discussions.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
