The procedure for implementing the compliance system in the bank

Abstract

In today's conditions of globalization and increased competition in the financial sector, the introduction of a compliance system in the bank is becoming an extremely urgent task. As banking institutions are leading participants in the financial system, their stability is important for the economy of the state. The activities of banking institutions are aimed at preventing financial crimes, such as money laundering and terrorist financing, through compliance, which consists in checking customers, monitoring financial transactions and identifying suspicious transactions, preventing crises and financial failures. With the growing requirements of regulatory authorities, as well as taking into account potential financial risks and threats from unscrupulous customers or criminal groups, banks need to improve their risk management system and ensure compliance of all operations with legislation and standards. This creates the need to develop and implement an effective compliance system that ensures compliance with all legal and ethical norms in the bank's financial activities. In this context, the study and analysis of the process of implementation of the compliance system becomes an important task that requires careful research and determination of the optimal course of action to achieve successful results in ensuring internal control and compliance in the bank. The compliance system, or internal control, is defined as a set of procedures, policies, and standards that are aimed at ensuring the fulfillment of all internal and legal requirements in the bank, as well as at identifying, evaluating, and managing various risks associated with the bank's activities. In this scientific study, we will consider the process of implementing a compliance system in a bank in the context of regulatory requirements and international standards, as well as investigate the practical aspects of its implementation, including the structure of the compliance team, monitoring and reporting tools, as well as the impact of the compliance system on the bank's business strategy and reputation. Our study will emphasize the importance of properly organizing the process of implementing the compliance system to ensure customer trust and maintain the bank's stability in the modern financial environment.