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In addition to the decision-making bodies, the corporate governance of the ECB encompasses a number of external and internal control layers.
External:
Internal:
The Statute of the ESCB provides for two layers:
The external auditors audit the annual accounts of the ECB (Article 27.1 of the Statute of the ESCB). The European Court of Auditors examines the operational efficiency of the management of the ECB (Article 27.2).
Good Practices for the selection and mandate of External Auditors according to Article 27.1 of the ESCB/ECB Statute, as approved by the Governing Council of the ECB, 23 October 2008, en
The audit reports of the external auditors are published as part of the ECB Annual Report (see direct link "Annual Report" on the top right-hand side).
For the reports of the European Court of Auditors and the ECB’s reply, see:
The Directorate Internal Audit functions under the direct responsibility of the Executive Board. The mandate of the Directorate Internal Audit is defined in the ECB Audit Charter approved by the Executive Board (last amended 31 July 2007) ( pdf 23.9 kB, en).
The Charter is established on the basis of professional standards which apply internationally, in particular those of the Institute of Internal Auditors (IIA).
The internal control structure of the ECB is based on a functional approach. Each organisational unit (Division, Directorate or Directorate General) is responsible for its own internal control and efficiency. To ensure this, the business units implement a set of operational control procedures within their area of responsibility.
For example, a set of rules and procedures – known as a Chinese wall – is in place to prevent inside information, for instance, originating from the areas responsible for monetary policy implementation, from reaching the areas responsible for the management of the ECB's foreign reserves and own funds portfolio.
In addition to these controls, certain organisational units advise and make proposals to the Executive Board on specific control issues on a horizontal basis.
The Code of Conduct of the ECB gives guidance to, and sets benchmarks for, the staff of the ECB and the members of the Executive Board. All of them are expected to maintain high standards of professional ethics in the performance of their duties at the ECB as well as in their relations with NCBs, public authorities, market participants, media representatives and the public in general.
The members of the Governing Council also adhere to a Code of Conduct, which reflects their responsibility to safeguard the integrity and reputation of the Eurosystem and to maintain the effectiveness of its operations.
For details, see:
The Executive Board has also adopted a set of internal controls preventing the abuse of sensitive financial market information (insider trading rules).
The staff of the ECB and the members of the Executive Board are prohibited from taking advantage, whether directly or indirectly, of inside information to which they have access in conducting private financial activities at their own risk and for their own account, or at the risk and for the account of a third party.
A compliance procedure imposes specific obligations on those staff members with regular access to inside information.
The Executive Board has appointed an Ethics Adviser to provide guidance on all aspects of professional conduct and professional secrecy. The Ethics Adviser also ensures a consistent interpretation of the insider trading rules.
The budgetary authority of the ECB is vested in the Governing Council. It adopts the budget of the ECB, acting on a proposal put forward by the Executive Board. In addition, the Budget Committee assists the Governing Council in matters related to the ECB's budget.
In accordance with Regulation (EC) No. 45/2001 of the European Parliament and of the Council, the Executive Board appointed a data protection officer with effect from 1 January 2002.
back to topIn 1999 the European Parliament and the EU Council adopted Regulation (EC) No. 1073/1999 concerning investigations carried out by the European Anti-Fraud Office (“OLAF Regulation”) in order to step up the fight against fraud, corruption and other illegal activities detrimental to the Communities’ financial interests. It mainly provides for the internal investigation by OLAF of suspected fraud within Community institutions, bodies, offices and agencies.
ECB Decision on the rules applying to OLAF investigations - The Governing Council of the European Central Bank adopted on 3 June 2004 a Decision (ECB/2004/11) concerning the terms and conditions for European Anti-Fraud Office investigations of the European Central Bank, in relation to the prevention of fraud, corruption and any other illegal activities detrimental to the European Communities’ financial interests and amending the Conditions of Employment for Staff of the European Central Bank. This Decision entered into force on 1 July 2004.
While the Governing Council had accepted the need for strong measures to prevent fraud, it was of the view that the ECB’s independent position and statutory tasks precluded the application of the OLAF Regulation to the ECB. Instead, it adopted a separate ECB Decision of 7 October 1999 on fraud prevention (ECB/1999/5). This provided for the establishment of a comprehensive anti-fraud scheme under the ultimate control of an independent Anti-Fraud Committee.
The European Commission, supported by the Kingdom of the Netherlands, the European Parliament and the EU Council, challenged this stance (Case C-11/00). On 10 July 2003 the European Court of Justice ruled on the submissions of these parties and annulled Decision ECB/1999/5.
The Court ruling unambiguously placed the ECB “within the framework of the Community”. At the same time it stated that the legislator had wanted to ensure that the ECB could independently carry out the tasks conferred on it. However, the Court ruled that this independence does not have the consequence of separating the ECB entirely from the Community and exempting it from every rule of Community law. This is in line with the approach taken by the ECB. The application of the OLAF Regulation should not impair the independent performance of the ECB’s tasks.
During its period of existence, the Anti-Fraud Committee of the European Central Bank established the following annual activity reports:
The Internal Auditors Committee is responsible for audit missions under a mandate from the Governing Council. The ESCB audit policy ( pdf 23 kB, en was established by the Governing Council in order to ensure audit coverage for joint projects and joint operational systems at the ESCB level. These audits are co-ordinated within the Internal Auditors Committee.
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