Meeting compliance challenges
Since 2022, new economic and geopolitical balances have created an environment marked by growing instability. At the same time, new compliance risks are emerging, such as those related to new payment methods, the popularisation of crypto-assets and more sophisticated forms of abuse and fraud. In the area of financial security, international sanctions regimes are becoming increasingly complex, while European AML/CFT(1) regulations are evolving with the creation of the AMLA(2). The protection of market integrity remains a major issue and a challenge, given the proliferation of communication channels and trading platforms. Expectations in terms of Conduct are increasing in order to ensure ethical and transparent behaviours. In this context, the Compliance function plays an essential role in ensuring the security of BNP Paribas, its clients and its employees, while supporting the Group’s business strategy, and must constantly evolve to adapt to these numerous changes.
“The role of our function is to establish a normative framework and to ensure that our activities are robust and comply strictly with regulations, while optimising the effectiveness of our setup. This requires the implementation of a true compliance by design within the Group, taking into account risks at all levels of the organisation.”
REINFORCING OUR COMPLIANCE SYSTEM WITH RESILIENCE
At BNP Paribas, the Compliance function, as our second line of defence, monitors several non-compliance risks relating to financial security (money laundering and terrorist financing, non-compliance with sanctions regimes, corruption, non-compliance with tax regimes), protection of client interests, market integrity, professional ethics, ESG and Conduct.
Compliance ensures better identification and overall management of these risks, regular reporting to the supervisory bodies, and the implementation of a comprehensive regulatory framework, as well as increased controls and corrective measures, when necessary. Innovation plays a key role in this risk management. The controlled development of artificial intelligence will enable us to improve the effectiveness of our compliance framework.
OVER
US$3.1 trillionin illicit funds(3) flowed through the global financial system in 2023.
Source: NASDAQ Verafin 2023 study.
MAKING COMPLIANCE EVERYONE’S BUSINESS
As the first line of defence in our internal control framework, the compliance culture of the business lines is essential, as compliance with regulations is a prerequisite for all. To disseminate this culture, the Compliance function relies on the solid expertise of its employees and their know-how to adopt the right behaviours, as well as on a continuous dialogue with the business lines, along with educational actions and training programmes. Respecting the rules, reporting non-compliant behaviour and adopting best practices are crucial habits. The Group raises the awareness of its employees and trains them to act in accordance with its Code of Conduct. This Code requires everyone to act with integrity and responsibility, to protect our customers, our colleagues and the Group itself, and to respect each other. The “Speak up” culture, which encourages the reporting of issues, is a key lever in ensuring a safe working environment.
- Anti-Money Laundering and Countering the Financing of Terrorism.
- Anti-Money Laundering and Countering the Financing of Terrorism Authority.
- Including the financing of terrorism, money laundering, the proceeds of trafficking in human beings and in drugs.