COMPLIANCE MANAGEMENT IN THE BANKING SECTOR: LEGAL ASPECTS

Compliance management in the banking sector is a key element of ensuring the stability and reliability of financial institutions in the face of a constantly growing regulatory burden and changing legal norms. It encompasses a system of measures aimed at ensuring that banks comply with the requirements of legislation, regulators and international standards, which is critical to minimizing legal, financial and reputational risks.The growing number of regulations, such as anti-money laundering (AML) and counter-terrorist financing (CFT) rules, puts banks under pressure to integrate compliance management into all aspects of their operations. This requires the implementation of a clear system of internal controls, continuous monitoring of operations and transparency of financial flows. In addition, having an effective compliance system helps to avoid sanctions and financial losses that may be caused by non-compliance with regulatory requirements. The function of the compliance officer, who is responsible for developing and implementing compliance policies, is of particular importance. They are also involved in staff training to ensure that all bank employees understand the importance of compliance. In the context of globalization and the expansion of banking activities in international markets, banks must comply not only with national but also international regulations, such as FATCA or FATF rules. It is also worth noting that the development of new technologies and the digitalization of the banking sector creates new challenges, in particular in the area of cybersecurity. Compliance management in today's environment also covers the protection of customer data and the security of banks' information systems.