Reserve Bank of India has released a notice on Compliance Functions in Banks and the Role of Chief Compliance Officer (CCO). According to the compliance system Banks required, to have an effective compliance culture, independent corporate compliance function, and a strong compliance risk management programme at the bank and group level. Such an independent compliance function is required to be headed by a designated Chief Compliance Officer (CCO). Check here the details about Compliance Functions in Banks and the Role of Chief Compliance Officer (CCO):
The duties and responsibilities of the compliance function
The compliance function is to help the bank in managing its compliance risk, which can be defined as the risk of legal or regulatory sanctions, financial loss, or loss to prominence a bank may suffer as a result of its failure to fulfil with all applicable laws, regulations, codes of conduct and standards of good practice (together, “laws, rules and standards”). Compliance risk is sometimes also introduced to as integrity risk because a bank’s prominence is closely connected with its adherence to principles of integrity and fair dealing. Banking supervisors 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.
These shall include at least the following activities:
Role of Chief Compliance Officer (CCO)
A Chief Compliance Officer (CCO) is a corporate official in charge of overseeing and managing compliance issues within the Bank, for example, that a bank is complying with regulatory requirements and that the company and its employees are complying with internal policies and procedures.
Role of the Chief Compliance Officer Includes following:
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