Financial Crime World

Compliance Unit’s Key Responsibilities in Specialized Financial Institutions

Bangkok, [Date] - In this article, we will explore the crucial role played by the Compliance Unit in ensuring the compliance of Specialized Financial Institutions (SFI) with relevant laws and regulations.

Key Responsibilities

As per the guidelines issued by the Bank of Thailand, the Compliance Unit is responsible for providing recommendations and advice on financial products and services, as well as reviewing the compliance of various units within the SFI. The key responsibilities of the Compliance Unit include:

  • Providing Recommendations and Advice: Providing recommendations and advice on relevant laws and regulations to senior executives and personnel in various departments.
  • Participating in Deliberations: Participating in the deliberation of or giving advice on the issuance of financial products and services, as well as new work systems.
  • Reviewing Compliance: Examining or reviewing the compliance of various units within the SFI.
  • Preparing Annual Reports: Preparing and presenting the Annual Compliance Report.
  • Reporting Significant Issues: Promptly reporting any significant compliance-related issues or problems to the board of directors or the Compliance Committee.

Qualifications of Personnel

The guidelines also specify the qualifications required for personnel in the Compliance Unit. These include:

  • Broad Knowledge and Skills: Possessing a broad range of knowledge and skills, particularly in finance, accounting, information technology, business management, and law.
  • Knowledge of Relevant Laws: Having knowledge and understanding of relevant laws and regulations, and being able to analyze their impact on SFI operations.
  • Eagerness to Learn: Being eager to acquire and enhance knowledge and skills related to compliance duties.
  • Communication Skills: Possessing skills in communication, decision-making, and problem-solving related to violation of or non-compliance with relevant laws and regulations.

Reporting Requirements

The guidelines also outline the reporting requirements for SFIs. These include:

  • Submission to Bank of Thailand: Submitting reports to the Bank of Thailand’s Specialized Financial Institutions Supervision and Examination Department via the supervision and examination data submission system (SPVDA system) or by letter.
  • Annual Compliance Report: Preparing and submitting an Annual Compliance Report within 7 days from the date it was approved by the board of directors.
  • Prompt Reporting: Promptly reporting any significant compliance-related issues or problems to the Bank of Thailand.

Fraud Reporting

The guidelines also specify the requirements for fraud reporting. These include:

  • Fraud Reports: Submitting a fraud report whenever a case features in the press, concerns a customer dispute that cannot be resolved quickly, or results in damages exceeding the loss threshold set by each SFI.
  • Investigation and Reporting: Investigating fraud cases and reporting them to the Bank of Thailand’s Specialized Financial Institutions Supervision and Examination Department.

Use of Business Facilitators

The guidelines also allow SFIs to use services provided by business facilitators for their compliance function work, subject to the Bank of Thailand’s Notification Re: Regulations on SFI’s use of services provided by a business facilitator.

In conclusion, the Compliance Unit plays a vital role in ensuring the compliance of SFIs with relevant laws and regulations. The guidelines outlined above provide clarity on the key responsibilities, qualifications required for personnel, reporting requirements, fraud reporting, and the use of business facilitators.