The second, third and fourth principles define the responsibilities of senior management for compliance. The fifth principle defines the control of the independence of the compliance function in banks. The seventh principle sets out the responsibilities and tasks of the compliance department and its work programme.
Protecting this reputation in every activity must always be a dominant feature of the bank's management and employees. The term "Compliance's role" means a description of each of the bank's employees who are responsible for compliance.
بابلا
يأناثلا
مازتللاCHAPTER 2 – COMPLIANCE PRINCIPLES
Effective Compliance Policy
Delegating Responsibilities and tasks
The bank's senior management is responsible for supporting all compliance policies by leading by example, communicating compliance policies, ensuring compliance and reporting to the board on the bank's compliance risk management position.
Accountability and Penalties
Control and Reporting
The bank's senior management is responsible for supporting all compliance policies by leading by example, communicating compliance policies, ensuring compliance and reporting to the board on the management position for the bank's compliance risks. the supervision of compliance in the bank and. related compliance risks at least once a year to assist board members in making decisions based on correct information about whether the bank is managing its compliance risk effectively.
Coordination and Consistency with other Departments
Efficient Selection of Compliance Officer and Staff
It is the responsibility of senior management to select an efficient compliance officer and employees and provide them with appropriate training. The methods by which the Principles are to be implemented depend on a number of factors, such as the size of the bank, the nature, complexity, geographic scope of its activities and the legal framework and guidelines under which it operates.
Independence
- Independence Concept
- Elements of the Independence Concept
- Formal Organizational Status
- Organizational Structure of Compliance Department
- Qualifications
- Personal Characteristics (1) Integrity and honesty
- Resources and effectiveness of accomplishing tasks
- Responsibility for Providing resources and their impact
- Measurement of risks
- Assessment of Risks
- Identification and Measurement of Risks as a basis for the Program
- High risks cases and emerging developments The Board of Directors or its committee entrusted
- Periodic reports
- Annual Report
- Annual Report and SAMA
- Data base of compliance department
- Documentation
Whatever the difference, the organization and functions of the compliance department must be consistent with the strategy and structure of the bank's risk management. The Compliance Director must be appointed by the Board of the local bank or the Chief Officer of the branch in the case of the branches of GCC and foreign banks in Kingdom. The nature of the reporting line or other working relationships between other compliance personnel exercising compliance responsibilities and the Compliance Director will depend on how the bank has chosen to organize its compliance department.
Whichever method the bank chooses, the reporting line of the director of the compliance department should look like this:. 5.4.7 Direct or indirect organizational reporting .. line from the compliance officer leading to the chairman of the board of directors or his deputy. The compliance officer may be a senior officer of senior management, which is the ideal situation, or he may not be.
This should take into account the size of the bank and the volume of its activities. ةةنجللا يف قحلم اذه .ليلدلا The board of the local bank and the heads of the. The interests of the Bank's Compliance Department require that it have all the resources necessary to effectively carry out its responsibilities.
The bank's Compliance Department is responsible for supporting senior management in effectively managing the compliance risks facing the bank. Educating and training all bank employees on compliance rules relevant to their individual responsibilities in the bank is also a fundamental part of senior management's responsibility in inculcating compliance culture. The availability of such resources is an important indication of the bank's active compliance application through the compliance rules.
If the bank has a new product committee, a representative of the compliance function's staff participates in this committee. The preparation of the report must be in accordance with the bank's compliance risks and activities.
The internal audit department should of course keep the Compliance Director informed of the audit results regarding compliance. For more clarification regarding the role of the compliance department and the internal audit department as two separate entities, both departments are engaged in controlling the bank's activities. The compliance department is responsible for identifying and clarifying laws, instructions, policies and procedures to be applied in the bank, ensuring that they are incorporated in.
The role of the internal audit service is to carry out field and documentary audits in all units and departments in the bank based on a sample check or comprehensive coverage and constantly monitor the bank's internal audit systems and compliance with policies and procedures that the compliance department previously activated and helped to prepare within policies and procedures in accordance with.
ءزجلا
إد )
ربأع
يه )
Banks must ensure that agreements and arrangements by which some compliance activities are outsourced do not conflict with duties and do not impede effective supervision by regulatory authorities. Regardless of those tasks that the bank may outsource, the responsibility for pursuing compliance rests primarily with the bank's board of directors and senior management. The transfer of any compliance activity will be subject to the Contracting Rules issued by SAMA, including obtaining its no-objection prior to the contracting out process.
In this regard, joint committees (the Basel Committee on Banking Supervision, the International Securities Commission and the International Association of Insurance Supervisors) have developed high-level principles for the outsourcing of certain compliance activities to specialist firms.
ثلاثلا
ليلدل
جماأنربو
مازتللا
كنبلاب
PROPOSED FRAMEWORK FOR COMPLIANCE MANUAL AND PROGRAM At
- Banking Guidelines, Regulations and Circulars
- KYC “Know Your Customer”
- SAMA’s Bank Account Opening and General Rules of their Operation
- Documenting the following “KYC”
- Insider Information
- Incorrect Information
- General Compliance Policy
- Required resources to manage the compliance program
- Compliance employees’ responsibilities The responsibilities of the compliance employees and
- Compliance control
- Communication and training methods Methods shall be described for communicating
The need for clarity should be described. and separation of functional roles and . responsibilities of every officer and employee of the bank. Correspondence accounts and the nature of correspondence business, its location, control over it and its procedures towards customers. Approval by the bank's senior management to establish or continue a relationship for high-risk accounts.
The compliance department's relationship with each of them is defined according to the compliance risks. Description of the need to manage and manage conflicts of interest and to constantly protect the interests of clients and the relationship in managing conflicts of interest. A description of the policies and procedures for handling customer complaints, communications from regulatory authorities and legal process documents received.
A description of policies and procedures governing personal investments, monitoring and control of personal relationships, prohibited activities and whether the employee has a job other than the bank. Such employee's outside businesses will be approved by the compliance officer with the approval of senior management. A description of the nature, scope and intensity of the work of the external auditors and the extent to which their work and reports can be relied upon to perform compliance functions.
A description of the nature, scope and density of internal auditors' work and the extent to which their work and reports on the performance of compliance functions. A description of the compliance standards, policies and procedures followed by the branches and affiliates outside the Kingdom should be provided in accordance with the requirements of principle 9. A description of the general compliance policy approved by the board and applied to all staff of the bank.
لملا
- Committee Head
- Responsibilities of the Committee
- Performance and management capacity reporting
- ةسايس
- ةقياثو
- جماأنرب
- ليلإد
- ةعجارمب
- ةعجارمب
- ةعجارمب
- إدادعإب
- ريرقتلا
Given the different organization of the Compliance Department, it is recommended that it be a member of: a member of senior management, the Compliance Officer and the Anti-Money Laundering. It is generally recommended that committee members have adequate knowledge of compliance rules and be familiar with issued rules and regulations, target setting and technical reports. سلجملا The board of directors or senior management shall, . appoints, pursuant to the authorization of the chairman of the board of directors, the members of the compliance committee for a period of three years.
In case the bank thinks that it should include one of the board members, then the mandate of the elected board member should also be related to his mandate of membership in the board of administration. إداقعانا اهتسلج The head of the committee is approved by .. the board of directors or the body delegated by .. ıلولا the chairman of the board, before its first meeting. meeting In addition to the committee members, any bank staff member from the risk department, internal audit or legal department or any other department may be invited to the meetings if necessary.
The purpose of the formation of this committee is to . monitor the compliance risks in the bank, to ensure that the bank's management understands the compliance risks to which the bank may be exposed and to have appropriate policies and procedures in place to manage such risks. This is to ensure that, where changes would arise in ethical standards and practices, laws and regulations affecting business activities and products, the impact of these on the companies and the actions required by the company to protect employees train and ensure that compliance is reflected in the bank's compliance policy. Such a report contains all relevant information about the current compliance status of the bank.
The minutes of the meeting will be distributed within 5 working days (as a maximum period) after the meeting and approval of the minutes will be obtained through regular circulation. The results of the committee meetings will be submitted to the audit committee and the board of directors in report form if any decisions have been made. The report will include the results of the meeting with a list of decisions requested if the committee feels they should make those decisions and should attach any appendices to support their recommendations, otherwise only a summary of the minutes of the meeting will be presented.
