In April 2005, the Basel Committee on Banking Supervision (the Committee) published a document entitled Compliance and the compliance function in banks (the Compliance Paper). The Compliance Paper sought to provide high-level principles on banks' management of compliance risks.
As a follow-up to the Compliance Paper, the Committee asked its Accounting Task Force (ATF) to assess how the compliance principles have been implemented, as well as to review recent compliance-related incidents and challenges facing the banking industry.
The Committee has now published a paper entitled Implementation of the compliance principles. The paper sets out a summary of the assessment made by the Committee’s ATF based on a survey in which 21 jurisdictions participated.
The results of the survey show that in a substantial majority of respondent jurisdictions, banks manage and supervise the compliance function as an important risk management control function. The survey also showed that the compliance principles in the Compliance Paper remain relevant, and are reflected in current supervisory frameworks. The publication of the results of the survey is intended to assist jurisdictions that are still working to improve their compliance frameworks by providing them with a range of practices, as well as to inform them about the solutions developed to address the main issues faced by jurisdictions who have implemented the compliance principles.
View Implementation of the compliance principles, 26 August 2008