Resigning Compliance Head Blames Weak Centralized Compliance Function for AML Failures
The Group Head of Compliance for a large international bank charged with failing to prevent money laundering blamed a weak centralized compliance structure for neglecting to implement adequate anti-money laundering procedures. The resigning official said that the group compliance function did not keep pace with the bank’s rapid growth through acquisition, leaving too much autonomy to local affiliates and compliance personnel who did not report in to the corporate compliance group. He said that Group Compliance’s mandate was to advise, recommend and report but lacked the authority, resources, support, and infrastructure to ensure that the affiliates followed policies and procedures. The new structure will properly resource the corporate compliance group and will require all compliance officers to report to a centralized function as well as separate the compliance function from the legal function.