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  • Responsibilities of the Senior Management

    • HC-6.4.9

      Senior management is responsible for effective management of bank's compliance risk.

      Added: January 2019

    • HC-6.4.10

      Senior management is responsible for establishing the operating framework and the processes to support a permanent and an effective compliance function. It is responsible for establishing and communicating a written compliance policy through all levels of the organisation for ensuring that it is adhered to in practice. It is responsible also for approving the bank's compliance procedures for identifying, assessing, monitoring, reporting and advising on compliance risk.

      Amended: January 2020
      Added: January 2019

    • HC-6.4.11

      The compliance policy must be approved by the Board/the designated board committee and must address the following:

      (a) The role and responsibilities of the compliance function;
      (b) Measures to ensure its independence;
      (c) Its relationship with other risk management functions within the bank and with the internal audit function;
      (d) In cases where compliance responsibilities are carried out by staff in different departments, how these responsibilities are to be allocated among the departments;
      (e) Its right to obtain access to information necessary to carry out its responsibilities, and the corresponding duty of bank staff to cooperate in supplying this information;
      (f) Its right to conduct investigations of possible breaches of the relevant laws and regulations and the compliance policy and to appoint outside experts to perform this task if appropriate; and
      (g) Its right to be able freely to express and disclose its findings to the board of directors or to the designated board committee, e.g. the audit committee or the governance committee of the board.
      (h) The basic principles to be followed by management and staff describing the main processes by which compliance risks are to be identified and managed through all levels of the organization.
      Added: January 2019

    • HC-6.4.12

      The Board and the designated Board committee must ensure that all compliance findings and recommendations are resolved within six months for high risk/critical issues and 9 months for any other issues from the issue date of the subject compliance report unless otherwise agreed with the CBB taking into consideration time required for specific issues that may require substantive changes to technology, systems and/or processes.

      Added: January 2019

    • HC-6.4.13

      Senior management must assess the training needs of staff taking into account the existing skills and competencies, the nature of changes to laws and regulations in developing a training plan for compliance across all levels throughout the organisation. Training must be provided by competent and skilled personnel, whether available internally or externally. Training that is provided must reflect the seniority, role and responsibilities of the individuals for whom it is intended.

      Added: January 2019