Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART XII.1Authorized Foreign Banks (continued)

Auditors (continued)

Examinations and Reports

Marginal note:Examination of annual return

  •  (1) The auditor of an authorized foreign bank shall make any examination that the auditor considers necessary to enable the auditor to report on the annual return.

  • Marginal note:Auditing standards

    (2) The auditor’s examination shall, except as otherwise specified by the Superintendent, be conducted in accordance with the auditing standards referred to in subsection 323(2).

  • Marginal note:Filing

    (3) The auditor’s report shall be filed with the Superintendent within five months after the end of the financial year of the authorized foreign bank.

  • Marginal note:Report to Superintendent and extended examination

    (4) The Superintendent may, in writing, require that an authorized foreign bank’s auditor report to the Superintendent on the extent of the auditor’s procedures in the examination of the authorized foreign bank’s annual return and may, in writing, require that the auditor enlarge or extend the scope of that examination or direct that any other particular procedure be performed in any particular case, and the auditor shall comply with any requirement of the Superintendent and report to the Superintendent on it.

  • Marginal note:Special examination

    (5) The Superintendent may, in writing, require that the auditor of the authorized foreign bank make a particular examination relating to the adequacy of the procedures adopted by the authorized foreign bank in respect of its business in Canada for the safety of its depositors and creditors, or any other examination that, in the Superintendent’s opinion, the public interest may require, and report to the Superintendent on it.

  • Marginal note:Special audit

    (6) The Superintendent may direct that a special audit or report be made if, in the opinion of the Superintendent, it is so required and may appoint for that purpose a firm of accountants qualified under subsection 585(2) to be the auditor.

  • Marginal note:Expenses payable by authorized foreign bank

    (7) The expenses entailed by any examination, audit or report referred to in any of subsections (4) to (6) are payable by the authorized foreign bank on being approved in writing by the Superintendent.

  • 1991, c. 46, s. 592
  • 1999, c. 28, s. 35

Marginal note:Right to information

  •  (1) On the request of the auditor of an authorized foreign bank, the present or former principal officers, directors, officers, employees or representatives of the authorized foreign bank shall, to the extent that they are reasonably able to do so,

    • (a) permit access to any records, assets and security held by the authorized foreign bank, or any entity in which the authorized foreign bank has a substantial investment under Part XII, and

    • (b) provide any information and explanations

    that are, in the opinion of the auditor, necessary to enable the auditor to perform the duties of auditor of the authorized foreign bank.

  • Marginal note:No civil liability

    (2) A person who in good faith makes an oral or written communication under subsection (1) shall not be liable in any civil action arising from having made the communication.

  • 1991, c. 46, s. 593
  • 1999, c. 28, s. 35

Marginal note:Auditor’s report to principal officer

  •  (1) The auditor of an authorized foreign bank shall make a report to the principal officer of the authorized foreign bank in writing on the annual return not later than five months after the end of the financial year in respect of which the annual return is prepared.

  • Marginal note:Auditor’s opinion

    (2) In the report, the auditor shall state whether, in the auditor’s opinion, the annual return presents fairly, in accordance with the accounting principles referred to in subsection 308(4), the financial position of the business in Canada of the authorized foreign bank as at the end of the financial year to which it relates and the results of the operations and changes in the financial position of the business in Canada of the authorized foreign bank for that financial year.

  • Marginal note:Auditor’s remarks

    (3) In the report, the auditor shall include any remarks that the auditor considers necessary when

    • (a) the examination has not been made in accordance with the auditing standards referred to in subsection 592(2);

    • (b) the annual return has not been prepared on a basis consistent with that of the preceding financial year; or

    • (c) the annual return does not present fairly, in accordance with the accounting principles referred to in subsection 308(4), the financial position of the business in Canada of the authorized foreign bank as at the end of the financial year to which it relates or the results of the operations or changes in the financial position of the authorized foreign bank for that financial year.

  • 1991, c. 46, s. 594
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 162

Marginal note:Additional reports to principal officer

  •  (1) It is the duty of the auditor of an authorized foreign bank to report in writing to the principal officer of the authorized foreign bank any transactions or conditions in respect of the business in Canada of the authorized foreign bank that have come to the auditor’s attention affecting the well-being of the authorized foreign bank that in the auditor’s opinion are not satisfactory and require rectification and, without restricting the generality of the foregoing, the auditor shall, as occasion requires, make a report to the principal officer in respect of transactions in respect of the business in Canada of the authorized foreign bank that have come to the auditor’s attention and that in the auditor’s opinion have not been within the powers of the authorized foreign bank.

  • Marginal note:Transmission of report

    (2) The auditor shall, at the time of transmitting the report to the principal officer, provide the Superintendent with a copy of it.

  • 1991, c. 46, s. 595
  • 1999, c. 28, s. 35

Marginal note:Qualified privilege for statements

 Any oral or written statement or report made under this Act by the auditor or a former auditor of an authorized foreign bank has qualified privilege.

  • 1991, c. 46, s. 596
  • 1999, c. 28, s. 35

Records

Marginal note:Records

  •  (1) An authorized foreign bank shall prepare and maintain

    • (a) records containing copies of all orders of the Minister or the Superintendent in relation to the authorized foreign bank;

    • (b) accounting records respecting its business in Canada;

    • (c) with respect to its business in Canada, records showing, for each of its customers, on a daily basis, particulars of the transactions with that customer and the balance owing to or by the authorized foreign bank in respect of that customer;

    • (d) records containing information set out in Schedule III, as that information exists from time to time, in relation to the authorized foreign bank; and

    • (e) records containing the name, address and date of appointment of the authorized foreign bank’s auditor.

  • Marginal note:Place of records

    (2) The records described in subsection (1) shall be kept at the principal office of the authorized foreign bank or at any other place in Canada that its principal officer thinks fit.

  • Marginal note:Notice of place of records

    (3) Where any of the records described in subsection (1) are not kept at the principal office of an authorized foreign bank, the authorized foreign bank shall notify the Superintendent of the place where they are kept.

  • Marginal note:Form of records

    (4) Records required by this Act to be prepared and maintained by an authorized foreign bank

    • (a) may be in a bound or loose-leaf form or in a photographic film form; or

    • (b) may be entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.

  • Marginal note:Conversion of records

    (5) Records kept in one form may be converted to any other form and, notwithstanding section 246, an authorized foreign bank may destroy the record at any time after it has been converted.

  • Marginal note:Access to records

    (6) Creditors in respect of the business in Canada of an authorized foreign bank and their personal representatives may examine a record referred to in any of paragraphs (1)(a), (d) or (e) during the usual business hours of the authorized foreign bank, and may take extracts from it, free of charge, or have copies made of it on payment of a reasonable fee.

  • Marginal note:Electronic access

    (7) An authorized foreign bank may make the information contained in records referred to in subsection (1) available to persons by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing the records in intelligible written form within a reasonable time.

  • 1991, c. 46, s. 597
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 163
 
Date modified: