A report released in April 2005 by BASIL (Bank for International Settlements), titled "Compliance and the Compliance Function in Banks," contained the following statement in its introductory chapter:
- Compliance starts at the top. It will be most effective in a corporate culture that emphasizes standards of honesty and integrity and in which the board of directors and senior management lead by example. It concerns everyone within the bank and should be viewed as an integral part of the bank's business activities...Failure to consider the impact of its actions on its shareholders, customers, employees, and the markets may result in significant adverse publicity and reputational damage, even if no law has been broken.
The Typical Profile of a Bank Compliance Job
The compliance function is usually split into teams handling specific responsibilities. In the financial sector, these specialized compliance functions include addressing money-laundering regulations, developing compliance policies and procedures, compliance training for employees, compliance supervision, product compliance, offering compliance advice, and interacting with banking and securities regulators. Virtually every organizational document scheduled for release to the public needs prior review by a compliance specialist. In many cases, the advice of outside counsel and attorneys is also sought by compliance divisions. A full-time bank compliance officer will usually handle such responsibilities as:
- leading a small, specialized team of employees
- monitoring and reporting regulatory news and developments
- preparing and distributing regulatory news bulletins
- analyzing new rules and regulations to assess their impact on the organization
- providing counsel regarding compliance with securities and banking laws
- drafting memoranda and supervisory materials to address business and policy issues that require legal or regulatory compliance
- reviewing and monitoring compliance issues pertaining to political and other contributions as well as gifts to government officials
- interacting with other organizational departments while addressing legal matters, human resources issues, and policy development
A full-time bank compliance officer should have:
- at least five years' legal or compliance experience, preferably in the finance sector, enforcement, rulemaking, or regulatory compliance
- previous bank regulatory experience or experience in consumer finance
- a legal degree, preferably a Juris Doctor
- a proven track record demonstrating leadership skills and experience
- excellent managerial skills
- relationship-building skills
- excellent interpersonal and communication skills
- demonstrated professional integrity, maturity, and judgment
- exceptional skill in writing and drafting documents
- multitasking capabilities
- the ability to handle a heavy workload and meet deadlines
