Compliance House

Banking & Compliance

For banks, too, this is a modern era in which a lot is changing. In many areas, such as the behavioural risk, the law on secrecy, the risk of money laundering and, for example, the risk of subcontractors, regulations are being made more stringent or new rules are being drawn up. They cover a wide range, from capital requirements to remuneration, and from governance to contingency plans. In addition, as a result of the financial crisis, banks are faced with increased government supervision. During the crisis, the banks have suffered a lot of criticism and are expected to adapt. This is why every banking organisation needs a compliance management system to ensure that the bank is aware of the requirements and complies with them. Nowadays, all banks differ a lot in the way they work, but they have one thing in common: compliance with laws and regulations is very important.

The potential risk of non-compliance has become one of the main concerns for the managers of all financial institutions. After all, if banks are faced with legal action for non-compliance, the consequences can be considerably high, ranging from fines and temporary suspension to permanent closure. Moreover, non-compliance with laws and regulations has a major impact on the bank’s brand reputation and can lead to a decline in the number of clients. These clients are considered by financial institutions as a measure of their reputation and therefore it is very important for the bank to maintain its integrity and reputation.

Curious about how your company is doing in the context of compliance and what Compliance House can do for you? Please contact our specialists

Supervision

Nowadays it is important to distinguish between internal and external supervision. In the case of external supervision; within the financial markets one often thinks of the regulators such as De Nederlandsche Bank (DNB) and Autorities Financial Markets (AFM). DNB and AFM operate in the interests of the proper functioning of the financial markets and the protection of investors who operate in those markets. Nowadays there are many more types of regulators, including the ACM, CBP, MTB and ESMA. The Financial Supervision Act (Wft) shows that these supervisors can be compared with the internal ‘supervisor’ and the supervisory board.

Compliance management

To prevent the consequences of non-compliance, a robust compliance mechanism is needed. Compliance management is an integral part of a bank’s activities. Some of the tasks of a bank’s compliance management that help the bank comply with its legal and regulatory requirements include:

Customer monitoring activities

Banks must monitor their customers’ transactions to ensure that they comply with the law and do not engage in illegal activities. Illegal customer actions can include money laundering, tax evasion or even financing terrorism. Therefore, banks should closely monitor such illegal activities and report them in time to limit their liability.

Interdepartmental communication

It is necessary for all banking departments to be kept informed of any changes to the rules or guidelines of the supervisors. Communication is also crucial because regulators sometimes require additional documentation from the bank and the relevant departments must be informed of the requirements and time needed to prepare these documents.

Compliance Officer

The central figure in charge of compliance at the internal level is usually the Compliance Officer. The Compliance Officer is an officer appointed in particular in financial institutions to ensure compliance with laws and regulations. The function is focused on monitoring transactions, ensuring the integrity of the organizations and aims to reduce the risk of unlawful acts. A Compliance Officer ensures that the conduct of companies, including its personnel, complies with the requirements set by the legislator. The Regulation on Organisation and Control (ROB) requires financial institutions on behalf of the Supervision of Credit Institutions Act (Wet toezicht kredietwezen) to employ a Compliance Officer in order to guarantee the integrity of the financial institution.

Responsibilities

The Compliance House team ensures that you, as a bank, are compliant with all laws and regulations in the field of financial law. Our compliance experts delve into your organisation, examine which laws and regulations apply to your organisation and then draw up a plan to ensure that you comply with these rules on all fronts. In addition, the Compliance House specialists can also act as compliance managers for you. Not only is it necessary to ensure that you comply with the applicable rules, it is also important that you keep up with rapidly changing legislation and regulations.

Het team van Compliance House zorgt ervoor dat u als bank compliant bent met alle wet- en regelgeving op het gebied van het financiële recht. Onze deskundigen op het gebied van compliance verdiepen zich in uw organisatie, onderzoeken welke wet- en regelgeving op uw organisatie van toepassing is en stellen vervolgens een plan op om ervoor te zorgen dat u op alle fronten aan deze regels voldoet. Daarnaast kunnen de specialisten van Compliance House ook als compliance-manager voor u optreden. Het is namelijk niet alleen nodig om ervoor te zorgen dat u voldoet aan de geldende regels, het is ook van belang dat u de snel veranderende wet- en regelgeving blijft bijhouden.