THE ROLE OF COMPLIANCE OFFICER IN THE COMMERCIAL BANKS
Abstract
This paper analyzes the role of the compliance officer in the banking operations in order to minimize the legal risk in the commercial banks.
These paper consists of fourth (4) parts, that are:
- Introduction;
- Similarities and differences between the legal risk and the compliance function;
- The role of the compliance officer in the commercial banks; and
- Conclusion.
In the first part: “Introduction”, we define and explain the subject of our research.
In the second part: “Similarities and differences between the legal risk and the compliance function”, we analyze the legal risk and the effective management of this risk, and also we define and explain the compliance risk, in order to see the similarities and differences between the legal risk and the compliance function in the commercial banks.
In the third part: “The role of the compliance officer in the commercial banks”, we analyze in detail the role of the compliance officer and the compliance function through which this role is manifested in daily banking operations.
Finally, the fourth part of this paper is the “Conclusion”, in which we are giving our basic conclusions that arise from our paper.
We think that the role of the compliance officer in managing the legal risk in the commercial banks in the future should include: implementing the policies, structures, processes and culture that are directly aimed at building effective management of potential opportunities for minimizing the legal risk. In the Republic of Macedonia, the future compliance of the commercial banks with the current legislation should provide protection and elimination of all consequences that may arise as a result of non-compliance and improper application of the regulation.
