The Importance of Compliance and Overview of Legal Environment for Banks

On Nov. 29 afternoon, the seventh Citi-Fudan University Banking Course started in Room 204, Starr Building as usual. The Head of Compliance of Citi China Ms. Lili Qin and the Legal Consul Ms. Lily Wu were invited to give today’s lecture.

In the first part Ms. Lili Qin did a speech of The Importance of Compliance.

The main idea of this part includes 3 aspects: Compliance Risk and Management, Anti-Money Laundering and Compliance Laws, Regulations and Policies. First of all, Mr. Qin introduced the definition of compliance risk. She mentioned Basel Paper and from this point, led us into board and senior management’s responsibility and different Principles. The business, control functions and internal audit are the three levels of defense of compliance risk management. There are also some professional management tools mentioned by Ms. Qin. Anti-Money Laundering caused the interests of all students. The process is to identify illicit activity, then placement and layering process, at last is the integration. These four steps consist the procedure of anti-money laundering activity for bank. There are five key elements of AML: Customer due diligence, suspicious transaction identification and monitoring, AML reporting, AML training and AML review or audit. After that, Ms. Qin introduced our regulators and key regulatory ratios, new regulatory supervisory standard of banking industry. At the end we came to know the compliance polices of Citi from Ms. Qin. It is detailed to gift policy, employee trading policy, outside directorship and business affiliates, Chinese wall and escalation. Through the professional introduction we have a better understanding of banking.

Similar topic but different point of view, the head of Consul Ms. Wu brought us the speech of overview of legal environments for banks.

At the first beginning, Ms. Wu generally introduced Chinese financial legal system. And then combined with the business scope of Citi, Ms. Wu explained the significance of formulating relevant financial regulations. Finally she rolled out two real cases, which made us have rational understanding of contract, rights and obligations, customer’s rights to know, default, compensatory damages for　breach of contract, arbitration and litigation. Through this lecture, we begin to construct the concept how financial institutions to use the laws and regulations to ensure business terms operate orderly, under the real business environment.

The lecture lasted for three hours and completed successfully. Many attendees also showed their great interests and professional qualities in financial industry.

Written by: 周闽 2011 Asia MBA
Nov.29^th, 2011