Financial Crime World

Compliance Policy Document

Introduction

The following policy outlines roles and responsibilities related to compliance within our bank or financial institution. This document aims to ensure that we maintain a strong compliance culture, adhere to regulatory requirements, and identify potential risks to minimize non-compliance incidents.

Roles and Responsibilities

Nodal Compliance Officer (Head of Department)

  • Responsible for disseminating guidelines on new products/processes to operational units.
  • Monitors the implementation of new products/processes in operational units.
  • Ensures strict adherence to guidelines and regulations.

Zonal Compliance Officers (ZCOs)

  • Implements compliance functions in branches/offices under their jurisdiction.
  • Reviews the effectiveness of compliance functions.
  • Appoints Compliance Officers for branches/offices under their jurisdiction.
  • Collects periodic reporting from branches/offices under their jurisdiction.
  • Submits quarterly Compliance Certificates to the HO Compliance Department.

Compliance Officer (Training)

  • Implements compliance functions introduced by the Compliance Department.
  • Reviews the effectiveness of compliance functions.
  • Assists top management in managing compliance risk.
  • Ensures appropriate remedial action is taken for breaches/non-compliance.

Compliance Officer (RRB)

  • Implements compliance functions introduced/circulated by HO Priority Sector & Lead Bank.
  • Reviews the effectiveness of compliance functions.
  • Ensures proper compliance structure.
  • Reports non-compliance to the Compliance Department.

Key Points

  • New products/processes must be discussed in the ORMC/CRMC meeting for Risk Assessment.
  • A Compliance Certificate is required for new products/processes introduced, ensuring strict adherence to guidelines and regulations.
  • Close monitoring of new products/processes for the first six months after introduction to ensure compliance with indicative parameters.
  • Immediate reporting to the Chief Compliance Officer on any non-compliance/advisory/stricture passed by regulatory/statutory bodies.
  • Quarterly submission of Compliance Certificates to HO Compliance Department.

Conclusion

This policy aims to maintain a strong compliance culture, adhere to regulatory requirements, and identify potential risks to minimize non-compliance incidents. It is essential that all roles and responsibilities are understood and executed effectively to ensure the institution’s continued success.