COMPLIANCE FUNCTION PRINCIPLES IN THE FINANCIAL BANKING INSTITUTIONS

Abstract

This article refers to the principles formulated by the Basel Committee on the organization and role of the compliance function within ban-king financial institutions. Also, the provisions of the national financial legislation and the manner in which the proposals of the Basel Committee were reflected in the local regulatory framework are analysed. The compliance with the Basel III standards is the main challenge for the national banking system, and the main normative acts for implementing the standards show that the National Bank of Moldova has adopted all the principles imposed by the Basel Committee, regarding the compliance function. Some provisions of the legislative acts issued by the NBM are even a word-by-word account of the Basel principles.

Keywords

• basel iii
• internal control
• compliance function
• legislative framework
• risk management