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Myanmar’s Banking Regulations and Compliance: AYA Bank Leads the Way in Mitigating Risks
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In a bid to safeguard its financial services businesses and protect investors and depositors’ interests, AYA Bank has established a robust compliance department that closely monitors its operations to ensure adherence to regulations and internal controls.
Objectives of the Compliance Team
- Identify and mitigate risks
- Combat financial crime
- Prevent business risks from materializing
To achieve this goal, AYA Bank has implemented a comprehensive approach that encompasses:
- Fundamental principles
- Legal and regulatory compliance
- Financial reporting
This framework serves as a guiding light for the bank’s board, management, and staff, ensuring consistent adherence to compliance standards. The independent compliance function plays a crucial role in the bank’s second line of defense, verifying that AYA Bank operates with integrity and complies with applicable laws, regulations, and internal policies.
Compliance Function
The department conducts periodic reviews to assess its effectiveness, including:
- Evaluations of the bank’s compliance with Central Bank of Myanmar (CBM) regulations
- Outcomes of management investigations into fraudulent acts or instances of non-compliance
- Findings from regulatory agency examinations
- Examinations of significant correspondences with these agencies
Role in Risk Management and Employee Guidance
While risk management is a key focus area for the compliance function, it also serves as a point of contact within the bank for compliance queries from staff members. The department provides guidance to employees on the proper implementation of compliance measures, ensuring that they are equipped to identify and prevent potential risks.
Key Areas of Focus
Some of the key areas of focus for AYA Bank’s compliance function include:
- Preventing bribery
- Money laundering
- Country sanctions violations
- Ensuring fair business practices with consumers
- Addressing ethical issues that may pose reputational risks to the bank
To ensure effective compliance, the bank has implemented a range of measures, including:
- Strict policies
- Procedures
- Guidelines