Banking compliance refers to banks following the rules and regulations that have been laid out by the government. These laws are drafted for the purpose of safe banking within the country and abroad along with the protection of customer banking rights.
Basically, compliance with bank regulations means protecting the depositors from any risks that are likely to occur. Though the financial damage of a bank may be overwhelming, but it shouldn’t be able to compromise on the facilities that are being provided to the customers.
Laundering of money and bank failures are something that a bank must avoid at all costs. Consumer and business partner confidentiality is also another important aspect of banking compliance. If a bank is unable to protect its consumers and partners in trade, not only will the bank plunge in failure itself, but it will also cause harm to the related investors. Bad compliance can also lead to unwanted business press publicity that would permanently damage the bank’s reputation leading to investors backing off.
Therefore, in order for banks to remain protected from hazards, a bank compliance officer is needed to keep things at pace. Following are the tasks assigned to a compliance officer in banks:
A bank compliance officer is obligated to leading the bank’s employees in a safer direction when it comes to auditing, accounting, and managing financial transactions. The officer is also responsible for working in cooperation with management seniors present within the bank.
Being in-charge of compliance means that the officer has to keep a strict eye on the developments taking place in the business world. The officer can then inform the workers of his bank about the changed policies of law affecting the banking personnel. Monitoring also includes the task of distributing relevant reading material containing the changes that have taken place within the bank and the financial world. This reading material is distributed either on a weekly, monthly or quarterly basis.
A compliance officer is also responsible for keeping regular tabs on the devices and information software being used in the bank. This would include a review of all hardware like the proper functioning of desktops, copy machines, printers, and even the coffee machines.
The officer is also responsible for making sure that customer service is provided without any disruptions. The quality of service is also scrutinized to ensure that customers do not have any need for filing complaints.