Auditors Urged to Snitch on Lenders

The Central Bank wants auditors to report "serious" misconduct by lenders, one of its officials said Thursday.

The regulator has drafted amendments to the law on auditing to "encourage" auditors to report situations that "seriously threaten the stability" of a bank, Alexei Simanovsky, head of the Central Bank's regulation and oversight department, told reporters.

That could include cases where a bank's balance sheet does not reflect the real situation at the lender, he said. The amendments do not include mechanisms to force auditors to give such information to the Central Bank, he said.

Failure to report banks' misconduct would hurt an auditor's reputation, Simanovsky said.

The amendments must be approved by the Finance Ministry, State Duma, Federation Council and be signed into law by the president to come into effect.