Jordanian Banks Strive for Compliance Perfection as Banking Regulations Tighten
The Bank of Jordan has taken significant steps to ensure compliance with increasingly strict banking regulations, establishing an independent Compliance Department that reports directly to the Compliance Committee, a sub-committee of the Board of Directors.
Mandate and Objectives
The department’s mandate includes:
- Monitoring and managing compliance risks across all business areas
- Regulatory compliance
- Anti-money laundering and terrorist financing
- Financial crimes
- Customer complaints handling
- Achieving this goal, the department has been equipped with:
- A team of qualified and trained professionals
- Advanced automated systems
Compliance Policy and Risk-Based Assessment
The bank’s compliance policy is developed at the group level, reviewed periodically by the board of directors, and disseminated to all employees. An automated risk-based assessment (RBA) system is also in place, which enables the department to identify and manage compliance risks more effectively.
Monitoring Program and Reporting
To provide the board with reasonable assurance that major compliance risks are being managed effectively, the department has developed a comprehensive monitoring program. This program includes:
- Regular updates on changes to instructions and regulations
- Sharing of information with the business sector, executive departments, and the board of directors in a timely manner
Promoting a Culture of Compliance
The Compliance Department is also committed to promoting a culture of compliance within the bank, providing guidance and clarification on laws and regulations, as well as conducting continuous training programs for employees. To achieve this goal, the department works closely with other control functions, including:
- Internal audit
- Risk management departments
- Aligned with the bank’s enterprise management framework
Global Compliance Presence
In addition, the Compliance Department has appointed a senior compliance officer in each external jurisdiction to oversee compliance programs and ensure that they meet the requirements of local regulatory authorities. These officers report directly to the executive manager of the Compliance Department and submit periodic reports to the department, which are then presented to the Compliance Committee and Board of Directors.
Commitment to Compliance
The Bank of Jordan’s commitment to compliance is a critical step in maintaining its reputation as a leading financial institution in the region. By investing in robust compliance systems and processes, the bank is able to minimize risk and ensure that it remains in line with evolving regulatory requirements.