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Bank Sohar’s Policies and Procedures: A Model for Effective Governance

In a move to ensure transparency and integrity in its operations, Bank Sohar has put in place robust policies and procedures to prevent money laundering and terrorist financing. The bank’s commitment to adhering to international standards and best practices has earned it recognition as a model for effective governance.

Credit Approvals Committee: Oversight and Governance

The Credit Approvals Committee plays a crucial role in overseeing the credit performance of the bank, ensuring that lending decisions are made with caution and prudence. The committee’s responsibilities also include providing guidance on credit policy matters, including risk assessment and management.

Risk Management Committee: Ensuring Robust Risk Framework

The Risk Management Committee is responsible for assisting the Directors in discharging their oversight and governance duties in the risk performance sector. The committee ensures that a robust risk framework is in place, guiding the bank’s decision-making processes and ensuring compliance with regulatory requirements.

Head Office Project Committee: Governance and Oversight

The Head Office Project Committee functions as an Audit Committee for headquarters projects, overseeing aspects such as risk management, project scope, budget, resource allocation, procurement strategies, and issue resolution. The committee ensures that all projects are implemented in line with the bank’s policies and procedures.

Embedding Practices within the Organization

Bank Sohar’s training center plays a vital role in embedding anti-money laundering (AML) practices within the organization. Employees undergo a series of training sessions, including online orientation, classroom-based training, and additional courses at the College of Banking and Financial Studies. The bank has also established a well-structured learning center with senior trainers who design and document new training materials.

Identification, Reporting, and Enforcement

Employees are encouraged to report any issues or malpractices that fail to comply with regulatory and AML frameworks to their immediate line managers. The Internal Audit and Compliance department takes up these reports and presents them to the Board of Directors. External auditors, internal auditors, and compliance officers work together to ensure that the bank’s policies and procedures are effective in preventing money laundering and terrorist financing.

Conclusion

Bank Sohar’s commitment to adhering to international standards and best practices has earned it recognition as a model for effective governance. The bank’s robust policies and procedures demonstrate its dedication to transparency, integrity, and customer trust. As the financial sector continues to evolve, Bank Sohar’s efforts will serve as an inspiration to others in the industry.

References

  • Al Balushi, A.R., pers.comm., 28 April 2014
  • Bank Sohar 2014, Website. April 2014
  • Baity, William. “Banking on Secrecy – The Price for Unfettered Secrecy and Confidentiality in the Face of International Organised Crime and Economic Crime”. Journal of Financial Crime. Vol. 8, No.1.