Banken for en verden i endring The bank for a ... - BNP Paribas

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Banken for en verden i endring The bank for a ... - BNP Paribas

• the Compliance

> …Updating procedures…

• A new Group directive on the procedures

The Compliance function, in its capacity as pro- for authorising non-recurring directives, new

vider of compliance control and advice, is mainly products and new activities details the extent

responsible for ensuring general compliance to which local compliance teams may inter-

procedures and assisting Group entities with vene as regards managing risks that may harm

problems of all kinds that they may encounter the Group’s reputation, or the unsuitability of

is this area. In 2006, several major policies were products to customers’ needs. The tools for

updated at Group level, notably:

detecting and managing non-compliance risk

situations are playing an increasingly central

• A directive on reputation risk management, role, in particular the ethics alert mechanism,

which sets out the best ways for the Group operational in France and certain international

to protect its reputation among its customers, sites. In accordance with the requirements of

counterparties, regulators, and all parties impli- banking and finance regulations and pursuant

cated in upholding the Group’s reputation;

to data protection and banking secrecy laws,

this mechanism ensures the confidentiality of

• A directive on conflict of interest management, transactions. It only deals with compliance-

which concerns protecting clients’ interests, related issues, i.e., anything that may harm

the Group’s reputation, and the strengthen- the Bank, either in terms of its reputation or its

ing of regulatory requirements, in particular compliance with laws and procedures, market

in light of the European Markets in Financial integrity, and respect for the primacy of cus-

Instruments Directive (MiFID), which will come

into force in late 2007;

tomers’ interests.

> … and managing the financial security

mechanism

Within the Compliance function, the financial

security teams coordinate the prevention of

money laundering, the fight against corruption

and terrorism financing, and the application of

financial embargoes, a source of significant obligations

for financial intermediaries. They deal

with the reporting of suspicions on the French

market and set standards in specialist domains

such as “Know Your Customer” (KYC), with

regard to the prevention of money laundering.

The duty of care principle is a legal obligation

for financial institutions, which extends to all

their core businesses. A circular distributed

in 2006 enhances the mechanism regarding

“Know Your Customer” and acceptance of third

parties, third parties covering non-group asset

managers, referral agents, etc. It also describes

the use of IT tools aimed at identifying clients

that may pose a risk and strengthening transaction

monitoring.

34 GUIDING PRINCIPLES

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