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.