The Compliance Framework

Description

The purpose of the compliance function is to assist the bank in managing its compliance risk, which can be defined as the risk of legal or regulatory sanctions, financial loss, or loss to reputation a bank may suffer as a result of its failure to comply with all applicable laws, regulations, codes of conduct and standards of good practice. Compliance risk is sometimes also referred to as integrity risk, because a bank’s reputation is closely connected with its adherence to principles of integrity and fair dealing. Banks must be satisfied that effective compliance policies and procedures are followed and that management takes appropriate corrective action when breaches of laws, rules and standards are identified.

 

Adopting a framework of principles based on the BSBC Compliance and the Compliance Function in Banks and BSP rules and regulations, compliance with the laws, rules and standards that govern banking activities helps to maintain a bank’s reputation with its shareholders, customers, employees and the markets. Our asynchronous seminar incorporates sound practice guidance to assist banks in designing, implementing and operating an effective compliance function. To optimize its usefulness to all banks, the lecture stresses that a single framework of principles for effective compliance risk management does not restrict individual banks to a single organizational or operational approach. However, each bank must be prepared to demonstrate that the approach adopted is effective in dealing with the bank’s unique compliance risk challenges.

 

This session will help the participant to learn more the purpose of the compliance function in the banks in managing its compliance risk, which can be defined as the risk of legal or regulatory sanctions, financial loss, or loss to reputation a bank may suffer as a result of its failure to comply with all applicable laws, regulations, codes of conduct and standards of good practice.

Compliance risk is sometimes also referred to as integrity risk, because a bank’s reputation is closely connected with its adherence to principles of integrity and fair dealing, thus compliance risk management system shall be designed to specifically identify and mitigate risks that may erode the franchise value of the BSFI.

 

There is no quick fix or silver bullet in the Compliance Function.

 

 

 

This webinar is a mix of self-paced module and a live webinar. Access to the recorded presentation will be provided a week before the live session.

 

 

 

Topic Outline for the recorded presentation:

  • Introduction
  • BCBS Compliance Articles
  • Video – Compliance Function in Financial Institutions
  • A Complex Risk Ecosystem
  • Compliance Risk Management
  • Video – The Evolution of the Chief Compliance Officer Profile
  • Compliance Function
  • Compliance Program
  • Video – CCO What Makes Them Successful
  • Chief Compliance Officer
  • Risk Governance Structure
  • Responsibilities of the Board of Directors and Senior Management
  • Cross-border Compliance Issues
  • Outsourcing of Compliance Risk Assessment and Testing
  • Overlap or Similarity of Functions
  • Selling Compliance
  • Something to Ponder On
  • Case Studies

 

Live webinar:

  • Question and Answer Session
  • Additional Discussion:
  • Video – Kurt Eichenwald: Role of Compliance Officer
  • ORM/How to Conduct an Investigation and more….

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