Finland’s Banks Get Tough on Compliance: New Procedures Adopted

Overview

The Bank of Finland has recently updated its compliance procedures, introducing new rules to ensure that banks operate within the law and maintain high standards of governance. The changes aim to strengthen oversight and accountability.

Key Changes

Regular Meetings

• The Board will meet regularly on Tuesdays or Wednesdays at 9 am.
• A schedule will be made semi-annually in advance.
• Members of the Board and assigned experts will attend the meetings.

Agenda and Decision-Making Process

• The Chairman of the Board will adopt an agenda for each meeting, including a plan for discussion and decision-making on key issues.
• The agenda will specify:
  • Issue to be discussed
  • Presenter
  • Relevant document material

Decision-making will follow this order:

1. The member responsible for the administrative field presents the issue.
2. Discussion and questions are answered.
3. The Chairman states the decision of the Board.
4. If differences of opinion arise, the issue is decided on by vote.

Communication and Implementation

• Senior secretarial staff will communicate Board decisions to the Bank’s departments.
• Each department must ensure that issues falling within their field of responsibility are communicated more thoroughly.
• The secretarial staff will monitor implementation and take necessary measures.

Record Keeping

• All decisions made by the Board will be recorded in the minutes of the meeting, serving as a register of decisions.
• Minutes will be signed by the Chairman or chairman and secretary after being approved by the subsequent Board meeting.

The new procedures are expected to enhance transparency and accountability within Finland’s banking sector, ensuring that banks operate with integrity and adhere to high standards of governance.