Credit Union Annual Report 2022 - Flipbook - Page 23
Committee with relevant and timely audits and due
diligence assessments on various aspects of the
Credit Union’s operations. With the demands placed
on their respective areas, the competency and
staffing resources are continually being assessed
and enhanced with training and other support.
Internal Audit
The financial year 2021/2022 has been a challenging
year. The new Internal Audit Manager was hired in
June 2021 and the Internal Audit Department (IAD)
was able to complete 12 audits in the areas of
human resources, anti-money laundering, business
continuity plan, credit risk management, accounts
(finance), new accounts, and several others.
There were three special audit engagements during
the financial year but there were no fraudulent
activities noted. Relevant recommendations were
presented to improve the general internal control
environment of the Credit Union. The Departments
and Senior Management have responded favorably
to the IAU’s recommendations by committing to
implementing the action plans identified.
As is customary, the Internal Audit Unit will continue
to monitor and report on the progress made
towards implementation of the action plans to
address the audit issues noted. Thus, follow-up
audits are scheduled for the financial year
2022/2023. Aside from those, the IAD will also
embark on the review of critical controls involving
information technology, contract and vendor
management, loans operations, member services
and risk and compliance operations.
Risk & Compliance
Anti-money Laundering (“AML”), Counter Financing of
Terrorism (“CFT”) and Counter Proliferation Financing
(“CPF”)
The Risk and Compliance Department continues to
work towards ensuring that the Credit Union
remains compliant with the relevant laws and
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regulations. The Credit Union’s AML Compliance
programme is governed through a 4-pillar
approach, these being policies and procedures, risk
assessment, AML compliance training, and the
compliance audit function.
The Credit Union employed a new CRCO in March
2022. The CRCO was charged with the ongoing
operation and execution of the AML Compliance
Programme for our Credit Union. The CRCO also
assisted with the approval process of the members
of the Credit Union’s Board and Committees with
the Cayman Islands Monetary Authority (CIMA) by
coordinating the regulatory submissions required
for all Board and Committee Members as well as
other Senior Officers of our Credit Union.
AML and Prudential Policies and
Procedures
The Credit Union continues to enhance its policies
and procedures framework through the updates
and creation of additional policies and procedures.
In an effort to ensure the policies and procedures
are up to date and compliant with regulatory
requirements, an external service provider was
engaged to conduct an independent review and
update the existing AML/CFT/CPF policies and
procedures as well as those required for
compliance with the Credit Union's regulatory and
prudential obligations.
AML training
During the 2021/2022 financial year the Risk and
Compliance Department hosted various training
sessions for new and existing staff, on topics such as
updated policies and procedures, source of funds,
suspicious activity reporting and updating due
diligence for existing members.
Risk and
Compliance has also assisted with identifying a new
eLearning platform which will allow the Credit Union
to provide convenient and efficient training for all
staff as well as Credit Union Board and Committee
Members.
Modules include AML/CFT/CPF
compliance and Data Protection, which will allow
the Credit Union to measure and monitor the
effectiveness of its training programme. The
programme will be launched during the 2022/2023
financial year.
Credit Union ANNUAL REPORT 2022
