The new directive aims to determine the frameworks of the trilateral meetings of the CB with the banks and the auditors as well as the confidential, bilateral meetings of the supervisory authority with the auditors in the absence of the banks. It also describes the cases that the auditors must inform the CB on the possible violations of their customers.

During the trilateral meetings, the CB has the power to ask by the auditors all the data of the annual bank accounts, the accompanying auditors’ report, the management letter, the audit procedures and any other issues affecting the operation or the economic robustness of the bank.

"The chartered auditor is expected to participate actively and constructively in the trilateral meetings and to discuss with the CB all information on the bank’s economic condition, including information – if necessary – on the customers”, the directive says.

The regulation of the bilateral meetings is exceptionally interesting too. The CB called the auditors to inform it within a day on anything that they are aware of in relation to possible violations of the law or regulations or impacts on the bank’s operation.

According to the new directives, the auditor is obliged to "exercise his/her professional judgment” before he/she decides whether an issue must be handled by the CB. Among the issues of the agenda is also the case when the auditor finds out problems on the capital, the liquidity, the insufficient provisions and the problematic accounting systems or systems of internal audit.

The auditors must inform the CB immediately when they find out that the bank is administrated by one person or does not meet the minimum equity required by the CB.

Even if there are doubts on the correctness of the decisions of the bank’s Management by the auditor, this might be a reason for bilateral deliberations, especially if the auditor believes that they will affect the bank’s economic condition or if they raise supervisory concerns.

The meetings with the CB must be attended by the competent partner as well as the managerial staff involved in the control.

Any violation of the law is a penal offence and it is punished with an up to 2 years imprisonment or a fine of up to €85 thousand or both. If the violation continues, the fine is €1700 per day. The CB may find responsible for violation all those who allowed the commitment of the offence knowingly.