What Is Compliance Assurance?

A bank's compliance culture is a definition of how a bank manages such risks based on compliance risks stipulated in the Basel Accord.

Compliance Culture

The compliance culture is to ensure that all members of a unit and a team can consciously comply with laws and regulations, and establish the concept of compliance within the unit and the team, advocate a culture of compliance, strengthen compliance management, and create A compliant atmosphere creates a good soft environment.

The significance of compliance operations in the context of compliance culture.

First, fostering a compliance culture and strengthening compliance operations are inevitable requirements for financial companies. The nature of the financial enterprise's own work, the particularity of its products and financial services determine its high risk and strong standardization.

How to cultivate a compliance culture and strengthen compliance operations

First, all employees establish the business philosophy of compliance management and compliance culture.

We must make all employees realize that compliance management and compliance culture construction is a big thing in business management. It is not the supervisors who want me to do it, but we should do it ourselves, and we must do it consciously. Because compliance has a positive correlation with the core elements of bank operations, such as cost control, risk control, and return on capital, compliance can create value for banks, and an effective compliance culture will eliminate compliance risks intangibly. Compliance management and the construction of a compliance culture are the need to standardize operational behaviors, curb violations and disciplinary problems, prevent cases from occurring, comprehensively prevent risks, and improve the level of business management; the urgent need to improve the system management system and prevent risks from the source; Scientific development concept is an important guarantee for realizing the new round of development goals of rural credit cooperatives. The concept and awareness of compliance must be infiltrated into the blood of the employees of the whole society, into every position and every business operation link, so that all employees can comply with laws, rules and standards when carrying out business management work, and strive to cultivate employees' Compliance awareness, promoting compliance concepts such as "compliance for everyone", "proactive compliance", "compliance creates value" throughout the bank, advocating honest, trustworthy, and upright moral values or codes of conduct and conduct company culture.

Second, establish and improve the compliance management organization mechanism.

We must fully understand the importance of establishing a compliance department, work hard to overcome difficulties such as small numbers of people, heavy tasks, and tight schedules, set up an independent and strong compliance department, and attach great importance to the construction of the compliance department. Compliance professionals must have strong professional qualities as well as strong personal qualities. Those who have a high degree of professionalism, corresponding technical qualifications and business capabilities should be enriched into the compliance management team and cultivated. And created a high-quality professional team. The compliance management organization mechanism must implement a top-level responsibility system, implement the responsibility system at various levels, clarify the pivotal position of the compliance department in the society, and define the relationship between the compliance department and the business department: the first line of effective self-compliance control by the business department Line of defense, the compliance department's second line of defense to implement professional compliance management before and during the event; the compliance department, as the main channel for the bank's internal management and external regulatory rules, decomposes regulatory rules, risk tips, and regulatory opinions to Each business department or other back-office support department, each business department actively seeks the support and assistance of the compliance department, proactively provides compliance risk information or risk points, and cooperates with the risk monitoring and evaluation of the compliance department; The legal opinions help business departments manage compliance risks, provide compliance support for banking and product innovation, and minimize legal risks brought by business innovation.

Third, develop a good system with strong execution.

For a long time, there has been a lack of a unified, complete, comprehensive, and scientific compliance risk management regulation system and operating rules. Many systems have rough, generalized, and obscured problems, lack of operability, and the implementation of the system has "replaced by trust." Management, replacing systems with habits, and replacing discipline with emotions ". Compliance management calls for scientific and reasonable and complete rules and regulations and operating procedures. It is necessary to strengthen the enforcement of rules and regulations in order to reverse the long-term unclear responsibilities and difficult implementation of responsibilities. In terms of identification, quantification, evaluation, resolution, etc., it is necessary to make timely and necessary and scientific and reasonable improvements to the past rules and regulations and operating methods. The rules and regulations should not be static for many years. When formulating rules and regulations, it must be targeted. To be concrete and to be operable. In the formulation of business rules and operating procedures, the requirements for internal system combing, integration, and revision must be clearly defined. The new system must have the necessary compliance estimates and address the institutional basis for compliance risk management at the source. It is necessary to change the way in which the rules and regulations of administrative agencies have been used. It is no longer possible to provide general operating standards for business operations. In accordance with the sound practices of financial enterprises, business policies, manuals and operating procedures that can be used by personnel in various positions must be formulated. The rules and regulations must cover all customers, products and services, and must cover the conduct and ethics of all employees. Through continuous revision and improvement at the system level, everything has formed clear and compliant work standards, and strict compliance discipline constraints are everywhere, making it a conscious behavior of employees across the bank.

Fourth, strengthen compliance training for employees.

Senior managers, compliance managers and others are the three levels in the construction of a compliance culture. As a grass-roots unit of the Associated Press, it should organize the development of continuous and effective compliance risk training and education programs, and incorporate the literal requirements and laws of the laws, rules and standards, compliance policies, compliance awareness, and compliance duties applicable to banks. In essence, it runs through business policies, conduct manuals, and operating procedures. In accordance with the principle of full participation, conduct education and training for compliance managers and other personnel. Training should focus on systemic, targeted, professional, practical and diversity. Compliance managers must strengthen the training of new laws and regulations and adhere to the professional sentiment of "seeking truth from facts, being objective, fair, honest, and honest" to ensure that employees have the professionalism they deserve; they are responsible for providing other employees with relevant information on the implementation of operations. Training on laws, regulations, and industry standards, including compliance training and testing for new entrants; corresponding training and education should be carried out to keep pace with changes in applicable laws, rules and standards; and both positive and negative aspects should be strengthened Education, vigorously publicize the advanced model of observing the law and abiding by the law, fulfilling its duties, being diligent and honest, and promoting integrity. At the same time, analyze typical cases, openly deal with typical cases and those responsible for violations of laws and regulations, and warn employees. Through multi-level compliance training, a climate of compliance culture is gradually formed in the whole jurisdiction to ensure that relevant internal and external regulations are implemented.

Fifth, strengthen inspection and supervision of compliance operations.

From the perspective of sustainable development, banks' compliance operations must achieve an effective combination of internal control and external supervision. On the one hand, we will strengthen information disclosure, increase transparency, and use social forces to supervise business operations. On the other hand, we will strengthen on-site inspections and off-site supervision to further promote self-regulation. When performing inspection and self-discipline supervision functions, the division of responsibilities of each department should be clear, and close cooperation should be formed to form a joint force. The supervisory department is responsible for leading the organization of the inspection and handling of violations of discipline and rules and case clues; the business department is responsible for the operational risk inspection of operating agencies, the special inspection of credit corporate customer business, the personal loan operation risk special governance activities, and the various businesses responsible for this department The implementation of rectification measures, strengthening the system to sort out and improve; the personnel department is responsible for checking the communication and rotation of important posts, implementing the "compulsory vacation" system; the security department is responsible for investigating and handling cases such as fraud, theft, robbery, and carrying out gun management, Special inspections of management systems such as escorts, warehouse keeping, and video surveillance of business institutions. It is necessary to carry out targeted rectification of key businesses, key links and key departments. The first is to govern key businesses. Theft of units and individuals' deposits by means of false car loans, false housing mortgage loans, false mortgage loans, false mortgage loans, illegal bill handling, use of false information to collect and misappropriate credit funds, and manufacturing false seals of fake procedures, using the system The management of issues such as theft of funds in current and interbank accounts, and other loopholes in the management of new business such as intermediaries. The second is to manage key links. We will give priority to key links such as authorized credit, teller security certification cards, management of important blank vouchers, vaults and tail boxes, inquiry reconciliation, rotation and vacation of important posts, video inspections, and management of firearms and ammunition. The third is to govern key sectors. Focus on the governance of credit management, corporate business, personal business, financial accounting, security, legal affairs, personnel and other departments.

Sixth, establish an effective incentive and restraint mechanism for compliance operations.

In the past, due to inadequate attention to compliance risk management, the incentive and restraint mechanisms were relatively inadequate, with less incentives and lighter punishment measures. In general, as long as there are no losses or cases, the offenders are often only educated and rectified within a time limit, and rarely severely punished. For those who cause losses or cause cases, the punishment is not severe enough, and the disciplinary effect is limited. Compliance culture requires that banks have a clear accountability and accountability system, as well as corresponding incentive and restraint mechanisms, to form an atmosphere of accountability that all employees take for granted for their occupations and positions, fully reflecting the bank's advocacy for co-operation. Values of regulations and penalties. First, it is necessary to establish and implement a regular assessment mechanism for compliance operations and a reporting system for major violations. For major and unexpected compliance incidents that should be reported unreported or late, misrepresented, concealed, or underreported, according to relevant circumstances, The degree of adverse effects shall be dealt with seriously in accordance with relevant regulations of the state or the Associated Press. If the responsible person takes the initiative to report violations or reduce potential risks, punishment may be mitigated or exempted as appropriate. The second is to establish compliance accountability and implement compliance responsibilities. Those who have done a good job in compliance or who have reported or resisted violations shall be protected, praised or rewarded; the violations shall be strengthened, the cost of violations shall be increased, and the existence or concealment of violations, causing financial losses and economic cases shall be strictly enforced Investigate the responsibilities of managers at all levels. The third is to establish a re-supervision system for inspectors, and to find out the problems found by managers at all levels, compliance department personnel, and supervisors in the daily compliance risk management work, the penalties are not punished, and suggestions for rectification are proposed. Those who haven't put it forward shall be held jointly and severally punished.