The Industry Compliance and Risk Management in Banking Part. II

By its nature, the private banking business is subject to strong ethical obligations in a restrictive regulatory environment. Private Banks were able to adapt their organizations accordingly by developing a "sector compliance" deployed across their different levels and geographic features. Compliance is also declines in their information system. The tools available to the front office are now configured so as to detect transactions revealed a risk of non-compliance. Still, the legislation varies from one country to another, even within Europe, and in fact complicates the adaptation of the SI in a pooling system.

In this way, private banks have managed to build a culture committed to compliance throughout their organization, regardless of the level of responsibility and activity of its players, with supporting concrete ways (eg dissemination of "best practices "developed in-house or in collaboration with other banks to better support the fight against money laundering, etc.). in addition to the rules dictated by the ethics implicit in the strict sense. Daily collaboration between asset managers and compliance officers or the training focused on the regulation is widely involved in the dissemination of such a culture. All this should help avoid service failures often related to communication problems on compliance.



Thus, the various stakeholders of a private bank involved in the efficiency of the public and particularly to locking the risks of business and reputation. The first stems from the use of instruments with increasingly complex and specific risks (hedge funds, credit derivatives, etc.)..