COMPLIANCE POLICY OF UKRAINIAN BANKS AT THE PRESENT STAGE

Abstract

The article is devoted to topical issues of compliance development in Ukrainian banks. International corporations and banks were the first to implement compliance programs in Ukraine. In times of war, compliance helps protect against reputational and financial risks associated with cooperation with Russian and sanctioned banks and companies, detect suspicious transactions of bank clients, prevent and reduce the number of offenses and preserve one's own reputation. Banking compliance is important because it maintains the integrity of the banking system, prevents financial crimes and supports economic stability. The purpose of the article is to analyze the research of legislative and regulatory regulation, the compliance policy of the bank, the benefits of compliance and the determination of the consequences of non-compliance. The article defines approaches to the legislative and regulatory regulation of "compliance" and the organization of compliance in banks at the level of three lines of protection. Compliance policies were analyzed and systematized in accordance with the recommendation of the Basel Committee on Banking Supervision: «Compliance and compliance function in banks». The practice of the largest domestic banks regarding the implementation of the main compliance policies, in particular, the Code of Corporate Ethics, the Know Your Customer policy, the Policy against the legalization of income obtained illegally and the financing of terrorism, and the Anti-Fraud Policy were studied. It was determined that based on the declared general principles, each banking institution builds its own compliance model, taking into account the organizational structure of the bank itself, the specifics of its activity, size and consumers of banking services. The advantages of implementing compliance for banks are outlined, because effective compliance allows for proper control of compliance with the requirements of regulatory documents, standards and other mandatory requirements, management of reputational risk, situations of conflict of interests, etc., thereby protecting the interests of depositors, clients, counterparties, owners ( shareholders), the bank and its employees