What does compliance mean? What does compliance mean?

Compliance means that the business activities of commercial banks conform to laws, rules and standards. According to the definition of compliance risk by the Basel Committee on Banking Supervision, bank compliance refers to compliance with laws, regulations, regulatory rules or standards.

2. In recent years, the word "legal compliance" has been frequently used in the supervision of commercial banks in China. However, many people's understanding of the concept of "compliance" is superficial, and some people understand "compliance" as the management behavior of banks and their branches must abide by the rules and regulations formulated by the head office of banks; Some simply understand "compliance" as compliance, and non-compliance is violation. Obviously, these understandings are not consistent with the understanding of "compliance" in the international banking industry.

3. The Guidelines for Compliance Risk Management of Commercial Banks also clarify the meaning of compliance as follows: "It means that the business activities of commercial banks comply with laws, rules and standards." Laws, rules and standards related to banking, including anti-money laundering and prevention of terrorist financing activities, and guidelines related to banking, including avoiding or reducing conflicts of interest, privacy, data protection and consumer credit. In addition, according to the different supervision and management modes adopted by the regulatory authorities or the banks themselves, the above-mentioned laws, regulations and standards can also be extended to laws, regulations and standards outside the banking business scope, such as laws, regulations and tax laws on employment.

4. Laws, rules and standards may come from different sources, including laws, rules and standards formulated by regulators, market practices, industry codes formulated by trade associations and internal codes of conduct applicable to bank employees. They include not only those legally binding documents, but also the code of conduct of honesty, integrity and fair trade in a broader sense.