CAMS · Question #977
According to guidelines issued by Basel Committee on Banking Supervision relating to corporate governance principles for banks, what is the role of the board of directors in addressing an…
The correct answer is B. The board of directors should establish a compliance function and approve the bank's policies for. The Basel Committee on Banking Supervision (BCBS) requires that the board of directors establish and oversee the compliance function and approve the bank's AML/CTF compliance policies and procedures, including processes for identifying, assessing, monitoring, and reporting…
Question
According to guidelines issued by Basel Committee on Banking Supervision relating to corporate governance principles for banks, what is the role of the board of directors in addressing an institution's AML oversight and governance?
Options
- AThe board of directors should be responsible for overseeing the management of the bank's
- BThe board of directors should establish a compliance function and approve the bank's policies for
- CThe compliance function must have sufficient authority, stature, independence, and resources to
- DThe compliance function should report directly to the CEO concerning the bank's compliance with
How the community answered
(28 responses)- A7% (2)
- B86% (24)
- C4% (1)
- D4% (1)
Explanation
The Basel Committee on Banking Supervision (BCBS) requires that the board of directors establish and oversee the compliance function and approve the bank's AML/CTF compliance policies and procedures, including processes for identifying, assessing, monitoring, and reporting compliance risks. "The board of directors should establish a compliance function and approve compliance policies and processes for identifying, assessing, monitoring, and reporting compliance risks throughout the organization."
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