Principle (9) Matters Related to External Operations
| No: 42005223 | Date(g): 15/9/2020 | Date(h): 28/1/1442 | Status: In-Force |
Translated Document
Effective from 2020-09-15 - Sep 14 2020
To view other versions open the versions tab on the right
Compliance with Regulations and Instructions in the Host Country
| 93- | Banks that choose to conduct banking activities in certain countries must adhere to the regulations, instructions, and laws applicable in those countries. The branches or offices, as well as the structure and responsibilities of the compliance function, must be aligned with the regulatory requirements and local instructions of those countries. | |
| Higher Standards as a Basis When Regulatory Requirements Differ | ||
| 94- | When engaging in banking operations in specific countries, whether through branches or subsidiaries, it is important to recognize that regulatory requirements and instructions may vary from one country to another. These differences might depend on the type of business the bank is conducting or the form of its presence in those countries. Therefore, particular emphasis should be placed on the requirements outlined in Paragraph (2/6) of Section Two of the Anti-Money Laundering and Counter-Terrorism Financing Guide. | |
| Compliance Officers in Host Countries | ||
| 95- | Banks that choose to operate in specific countries must comply with all local regulations and instructions applicable in those countries. For example, banks operating as subsidiaries must meet the regulatory and instructional requirements for companies in the host countries. Banks operating as foreign branches must fulfill the requirements specified for foreign bank branches. The bank must ensure that compliance responsibilities in host countries are carried out by employees with local knowledge and expertise, in addition to oversight by the Chief Compliance Officer in collaboration with other risk and control units in the home country. | |
| Risk Assessment for Overseas Activities | ||
| 96- | Each bank must have implemented and updated procedures to identify and assess potential or increasing risks to its reputation associated with the products and activities offered in host countries by subsidiaries or branches that are not permitted or practiced in the home country. | |