HC-6.4.19
The independence and effectiveness of the function must be based on the following related elements:
(a) The compliance function must have a formal status with sufficient authority within the bank;
(b) There must be a group compliance officer or head of compliance with overall responsibility for co-ordinating the management of the bank's compliance risk;
(c) Compliance function staff, and in particular, the head of compliance, must not be placed in a position where there is a possible conflict of interest between their compliance responsibilities and any other responsibilities they have;
(d) Compliance function staff must have access to the information and personnel necessary to carry out their responsibilities; and
(e) The compliance function must directly report to the board or a designated board committee in the case of Bahraini Islamic bank licensees ) and administratively to the CEO; and
(f) In the case of branches of foreign bank licensees , the reporting must be to the Group Compliance Officer or Regional Compliance Officer and may report administratively to the CEO/GM.
Added: January 2019