Mission Statement of Standard Chartered Bank Introduction to BANK Compliance Department by xef79332


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									  Introduction to BANK Compliance Department: An Overview of
                      issues and activities:
Anti Money Laundering and Terrorist Financing

ML/TF prevention, Tax fraud prevention

Market Abuse

Investor protection, Conflicts of interest, Discrimination of customers, Consumer protection

Ethics & Fraud

Internal fraud prevention

Data Protection

Data protection and duty of professional confidentiality

- Establishing policies procedures and guidelines
- Advice
- Training
- Investigations
- Monitoring and reporting
         Compliance Department Goals & Objectives

Our Compliance team mission statement on is focused on serving as a business partner to the
 business units and delivering maximum value to the organization while effectively managing
                                     Compliance risks

                                                            Source: Standard Chartered.; Compliance Director Roundtable research.
          Compliance Department Organizational Overview

  Compliance consists of a variety of complex responsibilities and requires interactions with an array
                               important internal and external partners
                                                           Group Compliance Officer

Secretary & ICT support                                                                                                              Deputy:

 Compliance Officer                Compliance Officer                        Compliance Officer                             Compliance Officer
 Belgium and Functions             Merchant Banking                          Central & Eastern Europe & Russia              European Private Banking
                                   and Shared Services

Group Anti Money Laundering Unit     Group Ethics and Fraud Unit   Group Financial Markets Unit   Group ICT Projects Unit           Data Protection Officer
                          Corporate Legal Entity Structure

Legal entities have a tendency to proliferate and it is important from a cost and controls perspective to
                   keep the legal entity structure at an efficient and manageable level.


                    Belgium                                    CEER                      Russia

         Bank                    Insurance       Bank                      Insurance

                   Asset Mgt                                 Asset Mgt

                   Real Estate                               Real Estate

   •# of active legal entities
   •# of inactive legal entities

                                      Compliance Risk Analysis
Ethics & Fraud
Cheque fraud, Consumer frauds, Counterfeit money, Data-compromise fraud:, Payment card fraud:

AML & TF Risk

 Market abuse
 Insider dealing, market abuse, Investment frauds, Lending fraud:

                         Compliance Risk Policy

In order to minimize surprises, it is critical that the Board and Senior Management are all
                     agreed upon the companies approach to risk:

           - Risk Policy
         - Risk Framework

•   The company’s historical view on Compliance planning has been:
     – risk neutral

•   The company’s posture vis a vis authorities has been:
     – risk neutral

                    Major “Wins” for Compliance Team

     Over the past 12 months the Compliance staff have been working hard and have saved the
     company an estimated xx EUR as well as executing against a number of additional goals

     Division                        Action + Benefit to Company
                                                                                     Staff Involved

AML                  Prevention of ML/TF                                             AML Unit

FM                   Consumer Protection                                             FM Unit

E&F                  Fraud prevention                                                E&F Unit

Data Protection      Data protection                                                 DP Unit


               Compliance Services and Technology Overview

 One of the biggest challenges for the Compliance department is gathering data in a Compliance ready
format for the department to analyze; investments in technology have helped us manage this previously
                                            manual process
    Software                                  Type of services               Inhouse     Co-sourced              Outsourced

    Cliënt registration   PSN-UPD             Cliënt registration   PSN-                 x
    Transaction           Norkom              Transaction           Norkom   x
    Monitoring                                Monitoring
    Reporting software    GRC                 Reporting             GRC

                                                                                   Source: Compliance Director Roundtable research
                  Effective Compliance
Certain parts of the business are more Compliance efficient than other.
   The greatest reduction in the effective Compliance risk came from:

                      Doing the things right
                      Doing the right things

->80/20 rule: 20% of your effective efforts give 80% of your result

                                                                  Source: Compliance Director Roundtable research
       Business Unit Relationships- Communication Strategy
      Communication and support from the business units is critical to Compliance being able to
       source and implement Compliance planning strategies and meet compliance requirements
• Businesses incented on pre-Compliance or                • Biggest Opportunities for Business
  post-Compliance basis                                     Units:
    ─ Include details on current business                       ─ Insert details of most
      unit relationships, projects being                          promising opportunities to
      worked on etc.                                              work with/ realign/ restructure
                                                                  business units

• Compliance department outreach includes:                • Customer satisfaction survey results:
    ─ Insert Details on Training, Meetings,                    ─ Insert details (may want to
      Memos, Intranet Updates, etc.                              include additional details in


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