How Banks Can Elevate Their Compliance Management Systems

In the banking world, compliance regulations are constantly evolving. To stay compliant, financial institutions must continuously monitor for new guidance, updates to laws and rules, and enforcement actions that indicate a need for updates or changes to their existing processes and procedures.

While not every rule or ruling applies to a specific bank, financial institutions must actively respond and tailor their offerings to comply with existing and upcoming regulations. That’s where a compliance management system enters the picture.

A compliance management system, or CMS, should cover all the major and minor aspects of compliance management, from ensuring all team members follow policies and procedures to implementing new regulations. Too often, however, banks and other financial institutions overlook critical elements of an effective CMS, including the three lines of defense.

As you reexamine your bank’s CMS, consider these factors and how you can improve it, ensuring you’re ready to handle any future challenges and changes.