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Compliance Audit Checklists for Banks in Belgium

A recent study highlights the importance of compliance audit checklists for banks in Belgium. The country’s banking sector has faced increased scrutiny following the implementation of new regulations, including the EU’s MiFID II directive.

Key Compliance Areas for Belgian Banks

Claims and Complaints Handling

• Banks must have a clear process for handling customer complaints, with specific time limits for responding to claims.
• The bank’s policy on conflicts of interest and whistleblowing is also essential.

Risk Management and Best Execution

• Banks must implement policies and procedures to ensure best execution in financial instrument trades.
• Factors such as price, speed, likelihood of execution, and any other relevant consideration must be taken into account.

Client Classification and Assessment

• Banks must classify clients based on their knowledge and experience of financial products, financial situation, and investment objectives.
• Clients must be provided with suitable information on financial products and risks.

Conflicts of Interest Management

• Banks must identify potential conflicts of interest between employees, the bank, or its clients.
• Policies must be in place to prevent harm to client interests.

Whistleblowing and Anti-Corruption

• Banks must establish a whistleblowing system for reporting suspicious events.
• An anti-corruption policy must be maintained.

Compliance Audit Checklist

To ensure compliance with these key areas, banks in Belgium can use the following audit checklist:

I. Claims and Complaints Handling

• Is there a clear process for handling customer complaints?
• Are specific time limits set for responding to claims?
• Is the bank’s policy on conflicts of interest communicated to clients?

II. Risk Management and Best Execution

• Does the bank have policies and procedures in place for best execution?
• Are factors such as price, speed, likelihood of execution, and other relevant considerations considered?
• Are trades executed according to the bank’s best execution policy?

III. Client Classification and Assessment

• Is client classification based on knowledge and experience of financial products, financial situation, and investment objectives?
• Are clients provided with suitable information on financial products and risks?
• Are Key Investor Information Documents (KIID) provided for non-professional clients?

IV. Conflicts of Interest Management

• Are potential conflicts of interest identified between employees, the bank, or its clients?
• Are policies in place to prevent harm to client interests?
• Is the bank’s policy on conflicts of interest communicated to clients and employees?

V. Whistleblowing and Anti-Corruption

• Is a whistleblowing system established for reporting suspicious events?
• Is an anti-corruption policy maintained?
• Are employees trained on whistleblower procedures and anti-corruption policies?