Annual Report 2019
78
CENTRAL BANK OF ARMENIA
CENTRAL BANK COMPLIANCE
FUNCTION
U
Inderlining the importance of compliance of its operations
with domestic requirements and the best international
experience and standards, the Central Bank developed and
comprehensively regulated the process of centralized implementation
of the compliance function5 in 2019. In particular, the working group
set up during the reporting period carried out extensive studies of the
international experience on the introduction of the compliance
function in central banks. The following statutes governing the field
have been developed and approved as a result of the study.
The compliance policy
The guide for internal procedures on implementing
compliance
The compliance service's charter.
According to these statutes, the Central Bank's Compliance
Service (the Compliance Service) is responsible for enforcing the
compliance as a separate and independent function from other
subdivisions. The Compliance Service includes the Compliance Officer
and the Central Bank's relevant compliance staff.
The purpose of the Compliance Service is to ensure that the
Central Bank operations comply with both domestic and international
requirements for combating ML/TF, identify and assess reputation,
fraud, corruption and such other risks that result from non-compliance
with these requirements, and take action to suppress or reduce them.
The competencies of the Compliance Service include the following
Central Bank operations:
5. Until 2019, the compliance function was carried out by the Central Bank's departments
concerned, each doing its part of job.
6. The experience of De Nederlandsche Bank, the US Federal Reserve Bank, the Central Bank of
Lebanon, and the principles of the Basel Committee on Banking Supervision on the
implementation of the Compliance Function, as well as the Wolfsberg Group documents,
were studied.
7. In 2019 appointments were made for replenishment of the staff of the Compliance Service.
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