Compliance control of credit institutions encompasses the policies, systems, and procedures established to ensure that financial institutions adhere to applicable laws, regulations, and ethical standards. It serves to mitigate risks including money laundering, fraud, and legal penalties, whilst maintaining the overall stability of the institution.
Reporting institutions must set up a compliance monitoring system. This system is responsible for monitoring the risk of non-compliance.
The organization of the compliance system meets the following conditions:
The compliance control department is independent of the operational business units and reports directly to the executive body,
It is responsible for coordinating compliance risk management within the group,
To avoid any potential conflict of interest, the compliance officer must not hold any other position within the group.
Certain tasks relating to the responsibilities of the compliance officer may be delegated to departments. In this case, the compliance officer assumes a coordinating role between the entities responsible for carrying out the tasks arising from his responsibilities.
The persons in charge of compliance must have a high level of competence in the field of banking and financial activities and an in-depth knowledge of the rules and standards in force.
Key Areas of Focus
- Anti-Money Laundering (AML) & Know Your Customer (KYC): Detecting illicit activities and ensuring the authenticity of customer transactions within the financial activity framework.
- Capital Adequacy & Liquidity: Meeting the regional standard.
- Digital Resilience: Ensuring the protection institutions from cyber and IT risks.
- Reporting: Ensuring accurate data submissions to regulators like COBAC and MINFI.