The world we live in is undeniably an '๐๐ซ๐ ๐จ๐ ๐๐จ๐ฆ๐ฉ๐ฅ๐ข๐๐ง๐๐', which requires discipline and responsibility to identify, assess, and mitigate compliance risks in order to provide transparency and accountability to commercial banks.
From history to the present, ๐๐จ๐ฆ๐ฉ๐ฅ๐ข๐๐ง๐๐ is of the utmost importance forfinancial institutions to build beyond confidential relationships with their customers.
Money goes beyond a mere symbol of power; it becomes an instrument of political control. Banks, as gatekeepers of financial flows , are required by compliance regulations to track and ensure where money goes.
The Importance of compliance goes beyond regulations in the Banking Industry:
It covers a wide range of areas, including:
โ Anti money laundering and counter-terrorism financing
โ Conflict of interest management
โ Market abuse prevention
โ Regulatory framework adherence
โ Staff training
โ Compliance risk identification and assessment
โ Regulatory issue resolution
โ Customer relationship building
โ Compliance plan creation
โ Senior management guidance
โ Reputation risk management
โ Investigation procedures
โ Bank performance monitoring
โ Policy and procedure establishment
โ Regulatory communication
Four key stages are crucial for building a robust risk compliance framework:
๐๐ข๐ฌ๐ค ๐๐๐๐ง๐ญ๐ข๐๐ข๐๐๐ญ๐ข๐จ๐ง: Detecting potential compliance risks.
๐๐ข๐ฌ๐ค ๐๐๐๐ฌ๐ฎ๐ซ๐๐ฆ๐๐ง๐ญ: Assessing the severity of each risk.
๐๐ข๐ฌ๐ค ๐๐จ๐ง๐ข๐ญ๐จ๐ซ๐ข๐ง๐ : Continuously tracking compliance risks.
๐๐ข๐ฌ๐ค ๐๐จ๐ง๐ญ๐ซ๐จ๐ฅ ๐๐ง๐ ๐๐ข๐ญ๐ข๐ ๐๐ญ๐ข๐จ๐ง: Implementing actions to minimise risks.
๐๐๐๐ฅ ๐ฅ๐ข๐๐ ๐๐ฑ๐๐ฆ๐ฉ๐ฅ๐: The financial giant Morgan Stanley admitted to a fraudulent scheme involving some large stock trades and agreed to pay $249 million to resolve investigations by federal prosecutors and securities regulators.
๐๐๐๐ข๐ญ๐ข๐จ๐ง๐๐ฅ ๐ฉ๐จ๐ข๐ง๐ญ๐ฌ:
- Ensuring the accuracy and transparency of all financial institution statements is of the utmost importance.
- Build transparency and data security while building relationships with clients, especially regarding confidentiality matters.
- Comply with regulatory requirements and industry standards.
- Holding people accountable for their action