Paragraph 5: Governance of credit institutions and finance companies

I.- Subject to the provisions of II, the provisions of the articles mentioned in the left-hand column of the following table shall apply in New Caledonia, in the wording indicated in the right-hand column of the same table:

II.-For the application of the articles mentioned in the table above:
1° II of Article L. 511-51 is replaced by the following provisions:
"Where the members of the board of directors, the supervisory board or any other body exercising equivalent supervisory functions do not meet the requirements set out in I, the Autorité de contrôle prudentiel et de résolution shall dismiss the members of that body. The Authority shall verify whether the requirements set out in I are still met when it has reasonable grounds to suspect that a money laundering or terrorist financing operation or attempt, in connection with the entity concerned, is being or has been carried out or that the risk of such an operation or attempt could be increased. ";
2° In Article L. 511-84-1, the references to Commission Delegated Regulation (EU) No 604/2014 of 4 March 2014 supplementing Directive 2013/36/EU of the European Parliament and of the Council are replaced by references to Article L. 712-7 of this Code;
3° In the second paragraph of Article L. 511-86, the words: "Subject to compliance with the provisions of Article 4(V) of amended Finance Act 2011-1416 of 2 November 2011 ," are deleted;
4° In Article L. 511-97, the words: "to the specialised committee referred to inArticle L. 823-19 of the French Commercial Code" are replaced by the words: "to a specialised committee set up by and acting under the responsibility of the decision-making body to monitor issues relating to the preparation and control of accounting and financial information. The committee may only include members of the governing body who hold office in the company. At least one member of the committee must have particular expertise in financial or accounting matters and be independent according to criteria made public by the decision-making body.
"Without prejudice to the powers of the decision-making body, this committee is responsible in particular for monitoring the process for preparing financial information, the effectiveness of internal control and risk management systems, the statutory audit of the annual financial statements and, where applicable, the consolidated financial statements by the statutory auditors, and the independence of the statutory auditors.
"It issues a recommendation on the statutory auditors proposed for appointment by the General Meeting or the body exercising a similar function. It reports regularly to the Board of Directors on the performance of its duties and informs it immediately of any difficulties it encounters. This committee also monitors risk management policy, procedures and systems.