Section 35E: Submission of Report

1) Banks and financial institutions, insurance, casinos, institutions dealing in securities, institutions dealing in commercial real estate, co-operative institutions dealing with the main business of savings and loans or the indicative institutions established by the Government of Nepal by publishing a notice in the Nepal Gazette to ensure the suitability and effectiveness of the work to be carried out in accordance with this Act. The auditor shall submit a compliance report to the regulatory body every year after conducting an inspection on the subject as follows:

(a) The necessary policy, institutional, technical and control structures and their suitability,

(b) Risk assessment in accordance with the institutional scope, the establishment of a risk-based system and its effectiveness,

(c) Implementation of the annual plan of action, reporting system and monitoring,

(d) Identification and correction of weaknesses in risk assessment, policy, institutional, technical, control, implementation structure and effectiveness,

(e) Relating to other matters as may be determined by the regulatory body.

2) The audit pursuant to sub-section (1) shall be completed within six months of the end of the financial year and report thereon.

3) If the regulatory body is not satisfied with the report pursuant to sub-section (2) or finds it necessary to conduct a detailed inspection of any indicator institution, the concerned indicator institution may, at any time, inspect or cause to be inspected any indicator institution to bear the expenses.