RBI gives banks three more months to appoint Chief Compliance Officer – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/money-and-banking/rbi-gives-banks-three-more-months-to-appoint-chief-compliance-officer/article33732320.ece

The Reserve Bank of India (RBI) has given banks three more months to appoint Chief Compliance Officer (CCO) as per the guidelines it issued in September 2020.

“In view of the difficulties expressed by banks, they may follow the indicated processes for selection of CCO in the above circular within a period of nine months from the date of the circular – September 11, 2020 – and are free to reappoint the current incumbent as the CCO if she/he meets the requirements,” the RBI said in the frequently asked questions (FAQs) on the circular.

The circular, which was issued to bring uniformity in approach followed by banks to appoint a designated CCO selected through a suitable process with an appropriate ‘fit and proper’ evaluation/ selection criteria to manage compliance risk effectively, had originally given Banks six months for compliance.

Age limit

On the “not more than 55 years” eligibility criteria for appointment as CCO, the central bank said if a person identified for CCO role is more than 55 years but she/ he has been continuously associated with the compliance function prior to completing the age of 55 years, the person would be eligible for such appointment.

Referring to the prescription that the CCO shall have an overall experience of at least 15 years in the banking or financial services out of which minimum 5 years shall be in the Audit / Finance / Compliance / Legal / Risk Management functions., the RBI said: “…if a regional/ zonal/ business head had the requisite responsibility/ experience on the control functions of the business lines for 5 years or more, she/ he shall be eligible for the post of CCO under this condition.”

The RBI reiterated that compliance is a shared responsibility of the business units and the compliance function. Therefore, adherence to applicable statutory provisions and regulations must be the responsibility of each staff member of the bank and it is the work of the compliance function to ensure the same.

There should also be appropriate mechanisms for co-operation among departments and with the Chief Compliance Officer, it added.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s