Principle (4) Responsibility for Establishing and Developing the Compliance Unit
No: 42005223
Date(g): 15/9/2020 | Date(h): 28/1/1442
Status: In-Force
Effective from 2020-09-15 - Sep 14 2020 To view other versions open the versions tab on the right
The senior management is responsible, under the compliance policy approved by the board, for establishing and developing a permanent and effective compliance unit within the bank, as follows:
Establishing, Supporting, and Developing the Compliance Unit
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As a fundamental requirement of compliance, senior management in local banks, according to the compliance policy approved by the board, must establish, support, and develop an independent, permanent, and effective compliance unit with sufficient powers and responsibilities to oversee compliance. This includes having an independent compliance unit or head of compliance at the senior management level reporting directly to the top executive for foreign bank branches. The role of the compliance unit should be clearly communicated to all employees, encouraging them to consult the unit on compliance matters.
Reliance on the Compliance Unit
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Senior management must take necessary measures to ensure that the bank relies on a permanent and effective compliance unit, which performs its duties in accordance with the "Principles of the Compliance Unit" mentioned later.
Coordination and Integration with Other Business Units
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Achieving compliance requires senior management to foster a climate of trust and integration between the compliance unit and other business units, and to take the necessary measures and coordination to facilitate this relationship.
Appointment of the Head of Compliance and Compliance Unit Staff
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The selection and nomination of the head of compliance and the staff of the compliance unit must adhere to the appointment requirements for leadership positions issued by the central bank and any other relevant guidelines issued by the central bank. The responsibility for selecting compliance unit staff lies with the head of compliance in accordance with the bank’s internal employment and appointment requirements.
