BoB Investigation Procedural Guidelines – Green Climate Fund (GCF) Funded Projects
- Introduction
Misconduct, encompassing behaviors such as harassment, discrimination, bullying, or financial impropriety, undermines professional integrity and erodes collegial trust. It creates a dysfunctional work environment, adversely affecting employee morale, organizational productivity, and individual job satisfaction, while also posing risks to the mental and physical well-being of staff members. Therefore, it is the responsibility of all employees within Bank of Bhutan Limited (BoB) to report any instances of actual or suspected misconduct.
The Bank maintains a comprehensive Code of Conduct that prescribes the ethical standards and behavioral expectations for all personnel. Adherence to this Code is mandatory and non-negotiable.
The implementation of a robust whistleblowing culture is a priority for the Bank to maintain a transparent mechanism for reporting to facilitate early detection and mitigation of misconduct, ensuring compliance with regulatory standards. This requires the sustained and collective commitment of all employees to uphold and reinforce these principles.
The reports of any suspected or actual misconduct shall be submitted to the Head of Green Banking Section through designated channels, which include electronic mail, the official grievance portal on BoB website, or any other medium prescribed by the Bank.
2. Objective
The identification and remediation of misconduct is integral to the Bank’s operational resilience and reputational standing. The principal objectives are to:
2.1 Preservation of Workplace Dignity: To foster a professional, safe, and respectful environment conducive to employee development and well-being.
2.2 Regulatory Compliance: To ensure strict adherence to The Labour and Employment Act of Bhutan, The Financial Services Act of Bhutan, The Companies Act of Bhutan, the RMA Rules and Regulations, and other applicable legal frameworks, thereby mitigating the risk of regulatory non-compliance.
2.3 Upholding Ethical Standards: To demonstrate the Bank’s commitment to integrity and accountability, which are the cornerstones of public confidence in the financial sector.
2.4 Reputational Safeguard: To protect the Bank’s reputation and maintain the trust of depositors, borrowers, and other stakeholders.
2.5 Encouraging Ethical Reporting: To assure employees that reports of wrongdoing are taken seriously and that whistleblowers are protected from retaliation, thereby fostering a culture of collective responsibility.
3. Identification of Misconducts
The Bank in order to detect potential misconduct shall employ the following approaches but not limited to:
3.1 Formal Incident Reports;
3.2 Whistleblowing Mechanisms;
3.3 Official Grievance Portal on BoB website;
3.4 Customer Complaints and Grievance Redressal;
3.5 Media Monitoring;
3.6 Internal Audit Observations;
3.7 External Audit Reports;
3.8 RMA Onsite Reports;
3.9 Scheduled and Surprise Branch Inspections;
3.10 Management Reviews and Performance Audits by Royal Audit Authority (RAA), Internal Audit and Statutory Audits;
3.11 Scheduled and Surprise Performance Investigation by Anti-Corruption Commission (ACC); and
3.12 Informal Communications and Employee Feedback Mechanisms.
4. Preliminary Assessment and Handling of Reports
4.1 Upon receipt of a report, the Head of Green Banking Section shall initiate an immediate and impartial preliminary assessment to determine the prima facie validity of the allegations.
4.2 All parties shall be afforded a fair opportunity to present their perspectives in accordance with the principles of natural justice.
4.3 Should the preliminary assessment substantiate the occurrence of misconduct, the Bank shall implement proportionate disciplinary measures in accordance with Bank of Bhutan Service Rules and Regulation (BoBSR) and the Whistleblower and Protection Policy. These may range from but not limited to formal counseling and written censure to suspension or termination of employment, with or without consequential benefits, commensurate with the gravity of the offense.
4.4 The Bank maintains a strict policy prohibiting retaliation against whistleblowers as outlined in the Whistleblower and Protection Policy.
5. Establishment of a Prima Facie Case
5.1 For significant or complex allegations, the CEO shall refer the matter to the Internal Audit, Risk and Legal Division for an in-depth review. The objective of this phase is to establish a comprehensive prima facie case.
5.2 The designated division shall conduct a preliminary inquiry and submit a detailed report to the CEO. Based on this report, the CEO shall determine the subsequent course of action, which may involve either:
5.2.1 Administrative Closure: Closing the matter with the imposition of commensurate disciplinary action for minor violations; or
5.2.2 Formal Investigation: Constituting an Investigation Team to conduct a formal and exhaustive probe into serious allegations, including but not limited to fraud, embezzlement, harassment, or gross violations of the Code of Conduct.
6. Constitution of an Investigation Team
6.1 Where deemed necessary by the CEO, a dedicated and independent Investigation Team shall be constituted on an ad-hoc basis. The team shall ideally comprise a minimum of three members, drawn from diverse functional areas such as Internal Audit, Legal, and Operations, to ensure a multidisciplinary perspective. For matters of less complexity, the CEO may appoint a single, senior-level investigator.
6.2 The Investigation Team shall operate with absolute independence and impartiality, free from any actual or perceived conflicts of interest.
6.3 The following factors shall guide the constitution of the Investigation Team:
6.3.1 Identification of Expertise: The Investigation Team shall assess the nature of the allegation to determine the requisite technical and professional competencies
6.3.2 Investigation Team Member Selection: Members shall be selected based on their integrity, professional experience, and subject-matter knowledge, subject to the final approval of the CEO.
6.3.3 Independence: It is important that selected members have no personal or professional conflict of interest to the parties involved or the subject matter of the investigation.
6.3.4 Reporting Protocol: The Investigation Team reporting line to the CEO shall be clearly defined to ensure transparent communication.
6.3.5 Resource Provision: The Bank shall provide the Team with unfettered access to all necessary documentation, digital systems (including the Core Banking System), and administrative support.
6.3.6 Timeline: The Investigation Team shall establish a realistic timeline for completion, taking into account the complexity and scope of the inquiry.
7. Investigation Methodology
To ensure fair and transparent procedural process, the Investigation Team shall adhere to the following:
7.1 Review of Preliminary Findings: The Team shall commence by reviewing the prima facie case and all materials compiled by the Internal Audit, Risk or Compliance Division.
7.2 Identification of Stakeholders: All relevant parties, including but not limited to employees, customers, guarantors, and vendors, shall be identified.
7.3 Development of an Investigation Plan: A detailed plan outlining the scope, methodology, evidence requirements, and timeline shall be formulated.
7.4 Maintenance of Confidentiality: The Team shall exercise the utmost discretion because unauthorized disclosure can compromise the investigation and prejudice the rights of all parties.
7.5 Application of Investigative Techniques: The Team shall employ a combination of appropriate methods, including but not limited to:
7.5.1 Document Examination: Scrutiny of loan files, financial ledgers, correspondence, and policy documents.
7.5.2 Witness Interviews: Conducting formal, documented interviews with complainants, witnesses, and the subject(s) of the investigation.
7.5.3 Data Analytics: Analyzing transactional data from the Core Banking System to identify irregularities, or patterns indicative of fraud.
7.5.4 Review of Anonymous Reports: Examining information received through whistleblowing channels.
7.5.5 CCTV Footage Review: Analyzing surveillance recordings where relevant.
7.5.6 Audit Trail Analysis: Reviewing findings from internal and external audit reports.
7.5.7 Coordination with External Agencies: In cases involving suspected criminal activity, and with the prior approval of the CEO, the Team may coordinate with the Royal Bhutan Police or the Anti-Corruption Commission (ACC).
7.6 All investigative activities shall be conducted in strict compliance with the Laws of Bhutan, including but not limited to the Penal Code, the Civil and Criminal Procedure Code, and The Labour and Employment Act of Bhutan, with due regard for the rights and privacy of all individuals.
8. Reporting and Documentation
8.1 The Investigation Team shall provide regular, confidential progress reports to the CEO.
8.2 Upon conclusion of the investigation, the Investigation Team shall prepare a comprehensive Final Investigation Report. This document shall serve as the official record and should include the following sections:
8.2.1 Executive Summary: A concise synopsis of the case, key findings, and principal recommendations.
8.2.2 Introduction: Contextual background and the formal terms of reference for the investigation.
8.2.3 Methodology: A description of the investigative processes and techniques employed.
8.2.4 Findings: A detailed, objective presentation of the evidence gathered.
8.2.5 Analysis: A critical evaluation of the findings in the context of the Bank’s policies, the Code of Conduct, and relevant Laws of the country.
8.2.6 Conclusions: A clear and definitive statement regarding the substantiation of the alleged misconduct.
8.2.7 Recommendations: Specific, actionable, and proportionate measures for disciplinary action, policy revision, or process improvement.
8.2.8 Appendices: Supporting documentation, including interview transcripts, evidence logs, and relevant correspondence.
8.2.9 The duly signed final report shall be formally submitted to the CEO.
9. Review and Adjudication
9.1 Upon receipt of the Final Investigation Report, the Investigation Team and the CEO shall conduct a thorough review to assess its completeness, impartiality, and evidentiary foundation.
9.2 The Investigation Team shall consult with the Legal Division and the Human Resources Division to ensure that any proposed actions are consistent with The Labour and Employment Act of Bhutan, RMA regulations, and the Bank’s internal policies and procedures.
9.3 Following this review, the CEO shall make a final decision to:
9.3.1 Dismiss the Case: Close the matter should the allegations be found to be unsubstantiated.
9.3.2 Authorize Disciplinary Action: Direct the implementation of disciplinary measures as recommended and in accordance with the Bank of Bhutan Service Rules and Regulation (BoBSR).
9.3.3 Refer for External Prosecution: Refer the matter to the Royal Bhutan Police, the Anti-Corruption Commission (ACC), or the Office of the Attorney General for legal prosecution where the misconduct involves criminal offenses such as embezzlement, fraud, or corruption.
10. Disciplinary and Remedial Measures
The CEO shall authorize appropriate action based on the findings of the Investigation Team and subsequent legal advice. The nature and severity of the measure shall be commensurate with the gravity of the misconduct.
10.1 For Employees:
10.1.1 Written Censure: A formal letter of warning to be retained in the employee’s official record.
10.1.2 Transfer or Reassignment: Relocation to a different branch, Division, or functional role.
10.1.3 Suspension: Temporary removal from duties, with or without pay, in accordance with the provisions of The Labour and Employment Act of Bhutan and BoBSR.
10.1.4 Demotion: Reduction in rank, responsibility, and corresponding remuneration.
10.1.5 Dismissal: Termination of employment, which may affect the entitlement to gratuity or other terminal benefits as stipulated in the BoBSR and the Labour Act.
10.1.6 Financial Recovery: Initiation of proceedings to recover any financial losses incurred by the Bank as a direct result of the employees’ actions.
10.2 For External Parties (e.g., Borrowers, Vendors):
10.2.1 Suspension of Business Relations: Temporary suspension of all business transactions with the party.
10.2.2 Termination of Contract: Permanent suspension of the contractual relationship.
10.2.3 Blacklisting: The party shall be formally blacklisted from future business with the Bank. Where applicable, the matter will be reported to the Royal Monetary Authority.
10.2.4 Legal Proceedings: Initiation of civil or criminal legal action, including filing a First Information Report (FIR) with the Royal Bhutan Police or lodging a complaint with the relevant regulatory or prosecutorial authority.