On July 7, 2025, the Georgia Department of Banking and Finance finalized Rule 80-1-14-.02, which is immediately effective for all commercial banks in Georgia. This rule clarified previous guidance and implemented additional responsibilities surrounding the internal audit process.

Under the final rule, qualification to serve as the internal audit liaison has been expanded to include any employee of the institution, or any independent Director of the institution. Previous guidance required this individual to be an officer of the institution.

Additionally, the final rules requires outside reports to be provided directly to one of the parties listed below:

•          All independent Directors of the Board,
•          All independent Directors of the Audit Committee,
•          An independent Director serving as the Chair of the Board of Directors,
•          An independent Director serving as the Chair of the Audit Committee.

The Department has also issued communications allowing for multiple methods of report distribution. Reports may be provided to one of the above-named individuals via the following methods:

•          Mail directly to the independent Director serving as the Chair of the Board of Directors or Audit Committee,
•          Electronic mail directly to the independent Director serving as the Chair of the Board of Directors or Audit Committee,
•          Electronic mail to all independent Directors of the Board of Directors or Audit Committee,
•          Delivery via an online portal accessible by the responsible individuals.

These measures serve to formally implement guidance to maintain the integrity of the report distribution process. If you have additional questions, please contact our office to speak with a financial institution specialist.