March 24, 2003 News Archive

Governor Olson on Community Banking
Speaking at a community banking conference at the Chicago Fed, Governor Olson stressed, "It is important that community bankers stay closely attuned to current and emerging risk issues, and that they explore further advances in risk-management practice..."

Agencies Issue Updated Policy Statement on the Internal Audit Function and its Outsourcing
On March 17, 2003, the regulatory agencies revised their guidance on the independence of accountants who provide institutions with both internal and external audit services, to reflect the provision of the Sarbanes-Oxley Act of 2002. Section 201 of the Sarbanes-Oxley Act (implemented by the SEC in January 2003) prohibits an accounting firm from acting as the external auditor for a public company during the same period it provides internal audit services.

FinCEN Issues Advisory on Informal Value Transfer Systems
The Financial Crimes Enforcement Network released an advisory (PDF) on Informal Value Transfer Systems or IVTS. The advisory explains the operations of IVTS, describes how financial institutions may be used in the IVTS process, and identifies how the Bank Secrecy Act regulates IVTS operators.

BIS Quarterly Review on International Banking and Financial Market Developments Now Available
The Bank for International Settlements released its March 2003 review on international banking and developments in the debt securities and derivatives markets. The 73-page report (PDF) also features articles on managing official dollar reserves, the euro interest rate swap market, and the relationship between market volatility and derivatives turnover.