Banking Compliance Regulations You Should Know About

Today, only about 40% of small businesses are profitable. If you fall under this percentage and are a bank, then you want to make sure that you’re in compliance.

What are banking compliance regulations and how do they affect you? First, it depends on the country and area. Read on to explore all about the different regulations that you should know about to keep your business in compliance.

Bank Compliance Responsibilities

Bank compliance jobs are responsible for making sure that the institution remains compliant. This is in order to protect its reputation and integrity.

This includes:

  • Avoiding activities that aren’t in the bank’s ethics policy
  • Preventing tax evasion
  • Analyze and identify risk areas
  • Prevent money laundering
  • Protection against fines from the government

They also standardize processes, disclose ethical conduct, and share the compliance policy with all employees within the institution. This can include offering resolutions, addressing risks, and managing different problems that might occur.

Manage Residual Risks

In order to manage residual risks, you’ll want to practice risk avoidance. Risk avoidance is where you avoid the use of the risk.

Another option is to transfer the risk to another location such as an insurance company. Risk mitigation is a common practice by many banks for maintaining banking compliance.

Managed Banking

In the United States, they expect to have a notice in advance in regards to financial records. This will impact financial service firms.

This can include information that might impact information related to security, terms of access, and effective consumer control over access. Keep in mind that this will vary from country to country.


In regards to cybersecurity, banks have to notify the Office of the Comptroller of the Currency if a cyber threat has occurred. It must be within a day’s time.

This notification can be oral or written. You can even send it through the internet as well. When you experience a security incident, this will require a 3rd party bank service provider to let 2 individuals at each bank know.

Fair Credit Reporting

All information must keep integrity and accuracy when it’s sent to credit bureaus. Common violations include gaps within the change management processes. Without the proper training, it leaves your bank at a disadvantage for maintaining or creating these different procedures or policies.

Regulation Z

The government has reasonable procedures and policies when it comes to different topics. First, you need to make sure that you stay in compliance, but also be proactive. You can be proactive by having written policies on how you follow the rules.

What You Should Know About Banking Compliance Regulations

After exploring this guide on banking compliance regulations, you should have a better idea of what to expect. Take your time sifting through the different regulations and requirements in order to make sure that you’re up to-to-date.

Would you like to read more informative content? Check out our other articles on our site today!