Key Areas of Compliance in a Bank (Essay Sample)

By







Key Area of Compliance in a Bank
The key area of compliance in various banks might vary due to the variation in laws, regulations,and policies of different jurisdictions. It emerges to be a critical factor for banks to control the ML/FT risk element effectively to ensure that they operate with profits margins in the market. The supervisor who tends to evaluate the performance of such institutions will assess the compliance program. Once they are evaluated, it promotes adequacy and effectiveness. On the same note, it helps in establishing how well banks meet regulatory requirements (Organisation for economic co-operation and development, 2010). In a broader dimension, it is required that all banks should have a written AML/CFT compliance program that should be approved by the management board. The program should consist of policies, procedure, and processes that must call for frequent view by the relevant authority. An appropriate and functioning AML/CFT programs rely on certain conditions that it should meet.
It is prudent to meet with the bank compliance officer on a regular basis to ensure that the entire team meets that integration of AML/CFT compliance issues into the bank overall compliance apparatus. The maintenance of integrity within financial institutions depends on the role of t...