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Compliance Alert Global Website for Compliance Professionals Launched

Compliance Alert Global Website for Compliance Professionals Launched

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Published by nakib.ba9946
Compliance Alert aim is to assist financial and non-financial institutions to remain in compliance by managing their compliance risks, which can be defined as the reputation risk, legal, regulatory, financial loss, or any loss that these financial and non-financial institutions may suffer as a result of their failure to comply with all applicable laws, regulations, codes of conduct and standards of good practice. As a professional body we provide a full range of services, largely to companies and securities compliance professionals, including:
In-house Compliance Training / Public Training
Market updates / events / Publications
Social Networking / Newsletters
Continuing professional developments
Compliance Alert aim is to assist financial and non-financial institutions to remain in compliance by managing their compliance risks, which can be defined as the reputation risk, legal, regulatory, financial loss, or any loss that these financial and non-financial institutions may suffer as a result of their failure to comply with all applicable laws, regulations, codes of conduct and standards of good practice. As a professional body we provide a full range of services, largely to companies and securities compliance professionals, including:
In-house Compliance Training / Public Training
Market updates / events / Publications
Social Networking / Newsletters
Continuing professional developments

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Published by: nakib.ba9946 on Oct 02, 2008
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06/16/2009

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Compliance Alert Global Website for Compliance Professionals Launched
 
- /newswire/ -
Beirut, Lebanon, 05/01/2007 -Lebanon witnessed thelaunch of Compliance Alert Global website for Compliance Professionals, the 1stportal in the Mena region. Compliance Alert is a professional association withmembers from the financial services industry
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April 1st, 2007 witnessed the launch of the Compliance Alert, 1st portal addressed to theMENA region.Compliance alert means a risk-alert different to every banking or financial organization.From a bank's perspective, risk management should focus resources on the most importantregulatory requirements in a cost-effective manner. We believe that compliance risk can bebroken down into two types of risk, product risk and regulation risk, which are discussedbelow.Product RiskProduct risk refers to characteristics of a bank that are likely to affect the probability andimpact of noncompliance. These characteristics are related to such factors as the bank’s size,management expertise, and business orientation. To more effectively manage compliance,you may wish to consider the product risks applicable within your institution. For yourinformation, the four product risk factors used by Federal Reserve examiners are listed anddiscussed below.Product MaterialityThe materiality of a product is a factor of its importance relative to other products offered bythe bank. The number or amount of commitments or sales may express materiality in termsof the assets or total deposits of the bank, or, in the case of off-balance-sheet products.Product StabilityProduct stability is measured by the product’s age and complexity relative to other productsoffered by the bank. New and high-growth products would be expected to contain higher risk.On the other hand, a high degree of automation may mitigate other factors.Product ManagementIssues considered in this risk factor include the experience of management with new productofferings in general and with this product in particular. The quality and effectiveness of training and internal controls, the thoroughness of the internal and external audit functions,and the absence of past adverse findings should be considered when evaluating this factor.Bank/Branch Size (Market Share) – In general, large banks/branches affect a greater numberof consumers and bring a more complex array of products to the markets they serve. Assuch, large banks/branches have a higher level of risk than small ones. Market share qualifiesthis risk factor when the dominance of a bank or the absence of financial service alternativesproduces a reliance on the bank by area consumers disproportionate to the bank’s size. Thereverse may also be true of large wholesale or special purpose banks.Regulation RiskRegulation risk refers to the potential consequences to the general public and the bank of noncompliance with the regulation. Factors under this risk category include financial harm toconsumers; legal, reputation, and financial harm to a bank; new laws, regulations, oramendments thereof; historical industry compliance; and the burden of corrective action,including potential civil and financial liability. The risk inherent in the consumer protectionlaws and regulations fluctuates in relation to changes in legislation, or market and publicpolicy considerations. In establishing or evaluating a compliance program, you may first wishto consider the regulation risks that accompany your products.StructureThe structure of a bank’s compliance program depends on many factors, includingmanagement’s philosophy, the past compliance performance of the institution, and the tenure
 
and knowledge of bank employees. A less structured program may be adequate for a smallorganization with noncomplex products and a history of strong compliance. However, as aninstitution grows, adds branches, and increases its product offerings, a more structuredprogram is typically appropriate. A structured program includes written policies andprocedures that provide ongoing guidance to staff, particularly when management or staff turnover occurs. You should consider the following areas as you evaluate the appropriatenessof the structure of your bank’s compliance program.Written Policies – Formal written policies that outline compliance responsibility help ensurethat all employees are aware of their role in achieving compliance. Depending on the depth of these policies, key compliance personnel may use them to ensure that specific goals are metand tasks are completed.Policy Implementation – The most thorough and encompassing written policies and plans willhave no effect on compliance performance without effective implementation. Consideridentifying areas of responsibility in the written policies and developing a mechanism for theregular reporting of policy implementation and compliance.Compliance Goal-Setting – During the bank’s annual planning process, management shouldalso consider compliance goals. Appropriate strategies for meeting these goals should bedetermined and sufficient resources allocated during the budgeting process.Resources - Management must assess, and provide for, the level of resources necessary toachieve or maintain the targeted level of compliance performance. Compliance resourcesinclude compliance personnel, line personnel, senior management involvement, staff training,and outside compliance publications.Board and Senior Management - The institution’s board of directors should maintain anappropriate level of knowledge of bank compliance efforts and performance. Their oversightmay be accomplished through regular briefings on such topics as audit and review activities,problem resolution, training efforts, and staff turnover. Additionally, participation incompliance committee activities provides board members and senior management with moredirect involvement in the bank’s compliance efforts. When a bank experiences compliancedifficulties, board and senior management attention is often found lacking.Compliance Officer – Whether full- or part-time, the bank’s designated compliance officershould be someone with sufficient time to devote to monitoring and directing the bank’scompliance activities. The compliance officer and any assigned assistants should be of sufficient competency and have the requisite knowledge and authority. It is critical that thecompliance officer has the authority to require and enforce correction of compliance problems.In addition, proper reporting lines are important to prevent conflicts of interest. Ideally, thecompliance officer should report directly to the directorate, its compliance committee, or thebank’s chief executive officer.Compliance Committee – Many institutions with successful compliance programs haveestablished compliance committees that meet regularly and consist of personnel from variouslevels and departments. Senior management’s presence and/or support of such activitiesshould be evident.MembersCompliance Alert, is a newsletter covering current issues and developments related toprevention money laundering and terrorism financing.About Compliance AlertCompliance Alert "CA" is a professional association with members from the financial servicesindustry. Through its programs, website and publications, CA's fosters improved relations,information sharing and understanding between the MENA region, Europe and North Americaand private financial sectors.CA's mission is to develop a professional networking for individuals and institutions in aexpanding anti-money laundering (AML) field. The association provides resources for financialinstitutions and related businesses that help train, identify and locate practitioners whospecialize in money laundering control policies, procedures & regulations, and to promote the

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