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Compliance Procedures for Financial Institutions in Réunion Take Center Stage

As financial institutions in Réunion navigate the complex landscape of regulatory requirements, effective compliance procedures are more crucial than ever. With changes to national administrations and evolving regulations, it’s essential for credit unions and other financial institutions to have a robust compliance program in place.

Setting the Tone at the Top

The tone for an institution’s compliance culture is set by senior-level management and the board of directors. By ensuring that compliance efforts are mentioned in all job descriptions and annual employee reviews, implementing an effective compliance management system, and appointing a qualified compliance officer, institutions can establish a strong foundation for their compliance program.

Key Components:

  • Mentioning compliance efforts in job descriptions and annual employee reviews
  • Implementing an effective compliance management system
  • Appointing a qualified compliance officer

Building a Strong Compliance Team

The size and composition of a compliance team should directly correlate to the complexity and risk profile of the institution. Viewing compliance teams as profit protectors rather than cost centers can help mitigate reputational risk and ensure that regulatory requirements are met.

Key Strategies:

  • Diversifying experience within the compliance team
  • Hiring staff from different asset-size classes or types of financial-service organizations
  • Encouraging staff to earn certifications, such as Certified Regulatory Compliance Manager or Credit Union Compliance Expert

Implementing an Effective Training Program

A robust training program is essential for any compliance program. Institutions should require, customize, and make ongoing training available to all employees, covering applicable compliance policies, procedures, and regulations.

Key Components:

  • Requiring regular training sessions
  • Customizing training content to meet the needs of each employee
  • Making ongoing training available to all employees

Additional Resources

For institutions seeking further information on building a regulatory compliance program, the following documents are available:

  • Office of the Comptroller of the Currency Handbook on Compliance Management System
  • Federal Deposit Insurance Corporation Compliance Examination Handbook—Compliance Management System
  • Bureau of Consumer Financial Protection Examination Procedures—Compliance Management Review
  • Federal Reserve Community Bank Risk-Focused Consumer Compliance Supervision Program

Get Expert Advice

For more information or questions on building a compliance program, contact your Moss Adams professional.