Section 173
Internal audit
of Labuan Financial Services and Securities Act 2010
Every bank licensee and insurance licensee shall conduct an internal audit of its books and operations as the Authority may specify from time to time and shall submit to the Authority a report of such internal audit which shall include a report on the said licensee’s accounting system and controls.
(2)
An internal auditor appointed by a bank licensee or an insurance licensee to carry out an internal audit of its books and operations under subsection (1) shall for the purposes of this
Part be deemed to be an officer of the bank licensee or the insurance licensee respectively and shall, at all times, be subject to section 178.
Act 704
(3)
An internal audit may be carried out by any person except an external auditor of the bank licensee or insurance licensee, as the case may be, under section 174.
(4)
An internal auditor shall immediately report to the Authority if, in the course of his duties as an internal auditor of a bank licensee or insurance licensee, he is satisfied that—
(a)
there has been a contravention of the provisions of this
Act or that an offence under any written laws has been committed by the bank licensee or insurance licensee or any of its officers or employees; or
(b)
any irregularity which jeopardizes the interests of the creditors of the bank licensee or the insurance licensee, or, in the case of the insurance licensee, the interests of the policy owners, or any other serious irregularity, has occurred.
(5)
Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding five years or to both.