This Section applies in its entirety to all locally incorporated banks, including those within a banking group, and to holding companies whose subsidiaries are predominantly banks. While Module LR requires that all banks including branches must have an internal auditor as a controlled function in the Kingdom, only Paragraphs HC-6.5.7 to HC-6.5.23, HC-6.5.28 to HC-6.5.42 and HC-6.5.69 to HC-6.5.70 would be directly applicable to branches of foreign bank licensees in Bahrain in terms of the internal audit function located here. Branches should ensure that equivalent arrangements are in place at the parent level for other requirements in this Section and these arrangements provide for an effective internal audit function over activities conducted under the Bahrain license.