Compliance basically is adherence to set laws and regulations. This can be effectively achieved through:
- The process of identifying and analysing the rules governing the operations of the bank to create a robust rule book for the bank.
- Designing and implementing adequate controls in order to conduct business in accordance with the rule book.
- Monitoring the effectiveness of the controls put in place
The Role of Banks in the fight against Money Laundering.
Banks play a very important and crucial role in the fight against money laundering. They are the front runners in this important aspect of the reform agenda of our country.
The fight against money laundering gained steam after the September 11th events in America and Nigeria was a late entrant into the fight which resulted in us being adjudged by the financial action task force a united nations ad-hoc group based in Paris as one of the non cooperative countries and territories with resultant disastrous consequences especially for the banking sector and the nation at large.
The importance of joining this fight wholeheartedly cannot be underestimated because we cannot afford to wallow in isolation from the international community and be treated as a pariah nation in this ever increasing globalizing world.
The banking sector has been most affected by us being on the NCCT list because it affects the efficiency of their operations such as overseas banking correspondence and also financially for they are charged premium before other countries of the world deal with us for we are regarded by virtue of being on that list as a financially dangerous place to transact with.
From the foregoing one can easily deduce apart from cleaning our image, it is to the banks utmost advantage if we are de-listed for they stand to benefit the most and ironically the responsibility of achieving this mostly falls squarely on their shoulders.
This can only be achieved by them gaining the trust and actively engaging and cooperating with other stakeholders to move this great nation forward.
Roles and Responsibilities
- To minimize/eliminate compliance risk, the bank staff must:
Familiarize themselves with the regulatory requirements applicable to their business.
- Comply with both the letter and the spirit of all relevant laws,codes,rules,regulations and standards of good practice in all areas we conduct business.
- Ensure that any irregularities, which arise,are promptly resolved to minimize damage, loss as well as protect the bank's reputation.
- Ensure that all suspicious transactions are monitored and duly reported to the Head Office Compliance Department for further action.