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Compliance Officer Role and Responsibilities in Kenya: A Crucial Position in Banking

In Kenya, the Compliance Officer plays a vital role in ensuring that financial institutions adhere to external and internal regulations, laws, rules, policies, and procedures. The position is critical in controlling and managing risks related to money laundering, financing of terrorism, and compliance with financial embargoes/sanctions.

Key Responsibilities

The Compliance Officer is responsible for monitoring the bank’s compliance with various regulatory requirements, including submitting reports to regulators within required timelines. They must ensure that the bank implements Central Bank prudential guidelines, Basel Rules, Banking Act, IFRS, and other relevant statutes in banking.

  • Key Tasks
    • Ensuring compliance with due diligence and Know Your Customer (KYC) requirements
    • Monitoring the implementation of CBK prudential guidelines
    • Submitting reports to regulators within required timelines
    • Coordinating the implementation of FATCA, Unclaimed Assets, and other emerging regulations
    • Reviewing new process flows, products, projects, policies, and procedures for adequacy of compliance risk management
    • Periodically reviewing the compliance risk management policy and other related policies

Correspondent Banking Compliance

The Compliance Officer is also responsible for ensuring compliance with internal and external requirements on correspondent banking KYC. This includes conducting annual reviews of KYC documentation with correspondent banks and facilitating responses to AML and KYC queries.

Screening and Monitoring

The Compliance Officer must ensure daily monitoring, screening, and blacklisting of alerts as appropriate. This involves reviewing and treating alerts triggered by various screening and monitoring systems, managing the various blacklists, identifying and reporting suspicious transactions/activities.

Training and Development

The Compliance Officer is expected to participate in research on compliance-related matters and carry out training and awareness actions related to compliance areas for bank staff.

Key Performance Indicators

Some key performance indicators for the Compliance Officer include:

  • 100% compliance with statutory and regulatory guidelines
  • Nil fines/nil penalties due to lapses in compliance
  • New/amendments to relevant laws and regulations communicated to business units within one week of issuance
  • 100% compliance with regulatory requirements (CBK, FRC, BIFD, FATCA, Group, and Unclaimed Assets Act)
  • 100% review, closure, or escalation of alerts generated by various systems

Minimum Requirements

To be considered for this role, candidates should have a minimum of three years’ banking experience in compliance or risk department with a good understanding of bank policies, procedures, and external regulations. A university degree in Business or related field is required, along with certifications in ACAMS, CPA, CFE, or relevant profession.

Competencies

The ideal candidate should possess:

  • Excellent communication skills (verbal and written)
  • Presentation skills
  • Analytical skills
  • Knowledgeable about local and regional regulations, banking business, good research and investigative ability, and compliance topics
  • A team player with results-oriented and initiative-taking abilities