They also embrace the concept of risk-based compliance management. They expect compliance management to be tailored to the bank, be it large or small, offering standard or specialty financial services, simple or complex products lines, and adjusted as appropriate for the customer base as that issued for the Bank
Secrecy Act, also establishes their expectations that a bank's program be risk based. Who are they?
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A. B. C. D.C
The group being referred to in the question is bank regulatory agencies.
Bank regulatory agencies, such as the Federal Reserve, OCC, and FDIC in the United States, have the responsibility of overseeing the safety and soundness of banks and financial institutions. As part of this responsibility, they establish and enforce regulations related to various aspects of banking, including compliance management.
In recent years, there has been a shift towards risk-based compliance management, which is the concept of tailoring a bank's compliance program to its specific risk profile. This approach recognizes that different banks have different risk profiles based on their size, product offerings, customer base, and other factors, and that a one-size-fits-all approach to compliance may not be effective.
Bank regulatory agencies have embraced this concept and expect banks to implement compliance programs that are tailored to their specific risk profile. For example, a bank that offers complex financial products to high-net-worth individuals may have a different risk profile and therefore require a different compliance program than a small community bank that primarily offers basic deposit accounts.
In addition to their expectations around risk-based compliance management, bank regulatory agencies also establish requirements related to specific areas of compliance, such as the Bank Secrecy Act, which is aimed at preventing money laundering and terrorist financing. The agencies expect banks to implement effective programs to comply with these requirements and will examine banks to ensure they are doing so.
Overall, bank regulatory agencies play a crucial role in ensuring that banks operate in a safe and sound manner and comply with applicable laws and regulations. The agencies' expectations around risk-based compliance management reflect a recognition that a one-size-fits-all approach to compliance may not be effective and that banks must tailor their compliance programs to their specific risk profiles.