Cross-border Issues
HC-6.4.40
Conventional bank licensees that conduct business through a branch or subsidiary in other jurisdictions must through the Group Compliance Function:(a) comply with local laws and regulations;(b) have Group Compliance policy and procedures;(c) Conduct annual compliance testing on overseas operations whose total revenue represents 20% or more of the Group's total revenue and on every two years basis for other overseas operations.Added: January 2019HC-6.4.41
Conventional bank licensees must have procedures in place to identify and assess the possible increased reputational risk to the bank if it offers products or carries out activities in certain jurisdictions.Added: January 2019HC-6.4.42
Conventional bank licensees with overseas operations must establish a Group Compliance Function which must oversee the compliance activities on a group-wide basis. The Group Compliance Officer must ensure that compliance reviews and checks are carried out at branches and subsidiaries. As legal and regulatory requirements may differ from jurisdiction to jurisdiction, compliance issues specific to each jurisdiction must be coordinated within the structure of the bank's group-wide compliance policy.Added: January 2019HC-6.4.43
The
senior management with assistance of Group Compliance Officer must ensure that adequate resources, commensurate with the scale and complexity of the operations, are assigned for compliance activities at, the head office, branches and subsidiaries.Added: January 2019HC-6.4.44
The Group Compliance Officer must ensure that adequate reports and information is received from overseas branches and subsidiaries on compliance related issues.
Added: January 2019
