• The effective articulation of risk-based compliance in banks

      Haynes, Andrew (Palgrave Macmillan, 2005)
      The concept of compliance has developed over recent years. Gone are the days when satisfactory compliance in a bank consisted of making sure that a set of rules provided by a regulator had been met and each could be 'ticked off' and that appropriate returns had been sent in. Now the accepted approach is one of ascertaining the risks facing the institution and adopting appropriate measures to manage them. Regulatory guidelines are a tool to this end. A good example of this are the FSA rules in relation to financial regulation which, through their aims, their content, their guidance notes and their structure, clearly determine exactly this approach. However, while dealing with compliance in this way forces the bank to engage in a more careful and precise analysis of the risks facing it, problems can arise. The aim of this paper is to analyse how a bank can best succeed while approaching compliance as a risk-based issue. This is done while bearing in mind the various internal departments and external agencies that can impact on, or be impacted on by the procedures adopted. The paper considers the role of the regulator, compliance risk analysis itself and the relationship between the compliance department, other departments and external agents. It then goes on to consider the factors affecting risk, how compliance systems can best be built and shaped and how they can best be enforced. Finally, it considers the key issues that can be synthesised from this.
    • The Wolfsberg Principles - self imposed codes of practice.

      Haynes, Andrew (Sweet & Maxwell Ltd., 2005)
      Comments on the Wolfsberg Principles on the suppression of terrorist financing. Discusses client acceptance, client identification, due diligence, the acceptance of numbered or alternate name accounts, risks associated with offshore jurisdictions, responsibility for oversight, situations requiring extra due diligence, the updating of client files, the identification of suspicious or unusual activities, monitoring programmes, the requirement for written control policies, reporting, training records, the role of financial institutions in the fight against terrorism, the importance of adherence to existing know your customer policies, high risk sectors and cooperation.