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Compliance - En gränsöverskridande undersökning i finansmarknadsrätt, bankrätt, värdepappersmarknadsrätt och straffrätt

Käll, Pierre Johan LU (2015) JURM02 20161
Department of Law
Abstract
Financial markets have a central role in a well-working society and a bank has a central role on a well-functioned financial market. The characteristic of a bank’s business contributes to the financial ecosystem and promotes stability on the financial market. The society is undeniably becoming more and more globalised. This, combined with a constant technical development, has continuously led to the development of financial instruments and markets. This results in great opportunities but also great risks for financial markets. One of these risks is the compliance risk, which is a type of operational risk. The compliance risk may be understood as:

”The expression ’compliance risk’ is defined […] as the risk of legal or regulatory... (More)
Financial markets have a central role in a well-working society and a bank has a central role on a well-functioned financial market. The characteristic of a bank’s business contributes to the financial ecosystem and promotes stability on the financial market. The society is undeniably becoming more and more globalised. This, combined with a constant technical development, has continuously led to the development of financial instruments and markets. This results in great opportunities but also great risks for financial markets. One of these risks is the compliance risk, which is a type of operational risk. The compliance risk may be understood as:

”The expression ’compliance risk’ is defined […] as the risk of legal or regulatory sanctions, material financial loss, or loss to reputation a bank may suffer as a result of its failure to comply with laws, regulations, rules, related self-regulatory organisation standards, and codes of conduct applicable to its banking activities (together, ’compliance laws, rules and standards’)”. (The Basel Committee in Compliance and the compliance function, s. 7, 3 §).

Throughout the years, financial markets around the world have been affected by numerous disturbances causing instability on financial markets. This has led to devastating consequences for the financial markets, its actors, as well as for the society as a whole. However, on the other hand, the occurrence of financial crises, does also create opportunities for necessary changes. For example, the Basel Committee was established by the end of the 1970s and upholds financial stability at financial markets, the Financial Action Task Force was established in the late 1980s and promotes the work to prevent money laundering and terrorist financing. These intergovernmental institutions are today providing guidance within each sector.

Recent examples on such financial crises are the large bank crises in Sweden at the beginning of the 1990s and the global financial crisis which inter alia led to the collapse of Lehman Brothers in 2008. These crises have resulted in an intense work with developing new regulations for financial markets. Since 2008, efforts at the international level have mainly focused on developing a common ambition of a more integrated legislation from the European Union. New intergovernmental institutions have been established and existing ones have been provided a larger influence. The ambition is that the intergovernmental efforts will result in the prevention of financial crises as well as prevention of money laundering and terrorist financing.

The effort to prevent money laundering and terrorist financing has also contributed to a more internationalised legislative work. The Fourth Money Laundering Directive has been adopted and it is expected to be implemented into Swedish legislation within the near future. The Directive was designed to reduce the risk of financial markets being affected by money laundering and terrorist financing, to develop the risk based approach and to initiate more detailed legislation regarding simplified customer due diligence.

Against the backdrop of this international legislative work for financial markets and the prevention of money laundering and terrorist financing, the term compliance has been developed. Today, it is necessary for a bank to have a well-working compliance function.

The Banking and Financing Business Act (2004:297) was established as a reaction to the large bank crises in Sweden. The implementation of this Act resulted in an increased authority of Finansinspektionen concerning supervision. Based on this, it is today Finansinspektionen which at a national level is the inspection authority for the financial market, and which establishes the prerequisites and expectations of how a compliance function is to be structured within a bank. This has been issued through Finansinspektionen’s general guidelines (FFFS 2005:1) regarding governance and control of financial undertakings. A bank should apply these general guidelines to be able to satisfy the rules regarding risk management in Chapter 6, Section 2 of the Banking and Financing Business Act (2004:297).

There are different opinions regarding Finansinspektionen’s supervision work as such and there are different opinions on whether the directions and the practical guidelines are inadequate or not. Hence, responsibility is given to practitioners to spend an increasing level of resources to structure their own compliance function since the banks are exposed to numerous risks. These compliance risks, if realised, will result in high costs and possibly large losses. However, if these risks, are transformed into opportunities, the bank sector will benefit from positive synergy effects and enhanced market credibility. If all practitioners apply this ambition in a reliable, reassuring and preventive way, the financial industry as a whole will benefit from the enhanced credibility. Viewed from a more long-term perspective, criminological purposes may even be fulfilled.

The compliance function may be structured in different ways depending on several conditions, which this thesis aims to examine. Due to a lack of national guidance and guidelines, practitioners may apply international conditions to succeed with building a solid structure of the compliance function. An important document to consider is the Compliance and the compliance function by The Basel Committee, which contains best practice for banks. An additional approach to learn how the compliance function shall be structured is to consider exemplifying practice nationally and internationally. These practices indicate when and in what manner compliance risks are realised and may be conversely interpreted as an illustration of expectations on a bank. A fundamental pre-requisite to succeed with the work is to allocate sufficient amount of resources to handle this constant growing opportunity. (Less)
Abstract (Swedish)
Finansmarknaden intar en central roll i ett väl fungerande samhälle och banken intar en central roll för en väl fungerande finansmarknad. Bankverksamhetens olika karaktärsdrag bidrar till att det finansiella ekosystemet fungerar vilket innebär att den finansiella stabiliteten på finansmarknaden främjas. Samhällsutvecklingen är ofrånkomligen inriktad mot en globalisering. Detta i kombination med den tekniska utvecklingen möjliggör att finansmarknaden kontinuerligt är föremål för att nya finansiella marknader och finansiella instrument skapas och vidareutvecklas. För en bank innebär detta stora möjligheter samtidigt som det även innebär stora risker. En sådan typ av risker är compliancerisker vilka är en förgrening av operativa risker.... (More)
Finansmarknaden intar en central roll i ett väl fungerande samhälle och banken intar en central roll för en väl fungerande finansmarknad. Bankverksamhetens olika karaktärsdrag bidrar till att det finansiella ekosystemet fungerar vilket innebär att den finansiella stabiliteten på finansmarknaden främjas. Samhällsutvecklingen är ofrånkomligen inriktad mot en globalisering. Detta i kombination med den tekniska utvecklingen möjliggör att finansmarknaden kontinuerligt är föremål för att nya finansiella marknader och finansiella instrument skapas och vidareutvecklas. För en bank innebär detta stora möjligheter samtidigt som det även innebär stora risker. En sådan typ av risker är compliancerisker vilka är en förgrening av operativa risker. Compliancerisker kan inbegripa följande:

”The expression ’compliance risk’ is defined […] as the risk of legal or regulatory sanctions, material financial loss, or loss to reputation a bank may suffer as a result of its failure to comply with laws, regulations, rules, related self-regulatory organisation standards, and codes of conduct applicable to its banking activities (together, ’compliance laws, rules and standards’)”. (Baselkommittén i Compliance and the compliance function, s. 7, 3 §).

Genom åren har finansmarknader runtomkring i världen varit föremål för åtskilliga störningar vilket inneburit att finansmarknaden rubbats. Detta har resulterat i förödande konsekvenser för finansmarknadens aktörer samt för samhället i stort. Mot bakgrund av att finanskriser inträffar skapas även möjligheten till förändring. Baselkommittén etablerades i slutet av 1970-talet och verkar för finansiell stabilitet på finansmarknaden. Financial Action Task Force etablerades i slutet av 1980-talet och verkar för att främja arbetet mot penningtvätt och finansiering av terrorism. Dessa mellanstatliga institutioner är idag vägledande inom respektive område.

I modern tid kan den stora bankkrisen i Sverige i början av 1990-talet samt den globala finanskrisen vilken utbröt med Lehman Brothers konkurs hösten 2008 även nämnas. Dessa kriser har inneburit ett intensivt lagstiftningsarbete för finansmarknaden. Ansatsen på det internationella planet har sedan den globala finanskrisen år 2008 varit inriktad på att utveckla en gemensam strävan av en mer integrerad gemenskapsrättslig lagstiftning. Nya mellanstatliga institutioner har etablerats och befintliga har fått större inflytande. Förhoppningen är att det gemenskapsrättsliga arbetet innebär ett förebyggande av finanskriser samt att penningtvätt och finansiering av terrorism sker.

Kampen mot penningtvätt och finansiering av terrorism har även internationaliserat lagstiftningsarbetet. Det fjärde penningtvättsdirektivet har antagits och förväntas implementeras i svensk lagstiftning inom en snar framtid. Direktivet är inriktat på att reducera risken för att finansmarknaden blir föremål för penningtvätt och finansiering av terrorism, utveckla det riskbaserade förhållningssättet samt införa noggrannare regler vid förenklad kundkontroll.

Mot bakgrund av det internationella lagstiftningsarbetet för finansmarknaden samt för penningtvätt och finansiering av terrorism har denna utveckling inneburit att compliancebegreppet utvecklats. Det är idag en förutsättning att en bankverksamhet har en väl fungerande compliancefunktion.

Lag (2004:297) om bank- och finansieringsrörelse växte fram mot bakgrund av den stora bankkrisen i Sverige. Genom att lagen trädde i kraft fick framförallt Finansinspektionen utökade befogenheter avseende tillsynsarbetet. Mot bakgrund av detta är det på nationell nivå Finansinspektionen som är tillsynsmyndighet för finansmarknaden, vilka anger förutsättningarna och förväntningarna på vilket sätt en compliancefunktion bör struktureras i en bankverksamhet. Detta har utfärdats genom Finansinspektionens allmänna råd (FFFS 2005:1) om styrning och kontroll av finansiella företag. En bank bör tillämpa dessa råd för att kunna uppfylla reglerna om riskhantering i 6 kap. 2 § i lag (2004:297) om bank- och finansieringsrörelse.

Det råder dock delade meningar om Finansinspektionens tillsynsarbete och det finns olika uppfattningar om att vägledningen och de praktiska riktlinjerna är otillräckliga. Det åvilar därför stort ansvar på de praktiska verksamhetsutövarna att på eget bevåg avsätta alltmer resurser för att strukturera upp sin compliancefunktion eftersom bankverksamheten står inför åtskilliga risker. Om complianceriskerna realiseras uppstår kostnader för banken vilka kan leda till stora förluster, men om riskerna däremot omvandlas till möjligheter kan detta innebära positiva synergieffekter. Dessa kan inbegripa en god ryktesspridning för banken på marknaden. Om samtliga praktiska verksamhetsutövare på ett tillförlitligt, förtroendeingivande och förebyggande sätt tillämpar denna strävan bidrar detta till en större trovärdighet för marknaden i sin helhet. I förlängningen förefaller detta även innebära att förebyggande kriminologiska ändamål uppnås.

Compliancefunktionen kan struktureras på olika sätt och på vilket sätt detta sker i det konkreta fallet beror på åtskilliga omständigheter vilket uppsatsen behandlar. Mot bakgrund av bristen på nationell vägledning och riktlinjer, kan den praktiska verksamhetsutövaren för att lyckas strukturera compliancefunktionen tillämpa internationella åtaganden. Ett centralt dokument att beakta är Baselkommitténs Compliance and the compliance function, vilket beskriver best practice för banker. Ett annat sätt att få vetskap om på vilket sätt compliancefunktionen bör struktureras är att beakta exemplifierande praxis nationellt och internationellt. Dessa praxis anger när och på vilket sätt compliancerisker realiseras i det konkreta fallet och kan motsatsvis tolkas vad som förutsätts och förväntas av en bankverksamhet. En grundläggande förutsättning för att lyckas med arbetet är att avsätta tillräckligt med resurser för att hantera denna alltmer tilltagande växande möjlighet. (Less)
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author
Käll, Pierre Johan LU
supervisor
organization
alternative title
Compliance - A comparative study of financial markets law, banking law, securities markets law and criminal law
course
JURM02 20161
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
Komparativ rätt, Intern styrning och kontroll, Compliancerisk, Självreglering, Compliancefunktion, Regelefterlevnad, Compliance, Finansmarknadsrätt, Finansrätt, Finansmarknad, Finanskris, Finansinspektionen, FFFS 2005:1, Bankrätt, Baselkommittén, Kapitaltäckningsreglerna, Systemrisk, Sveriges riksbank, RIX, Den stora bankkrisen i Sverige, Den globala finanskrisen, FI Dnr-1784, Värdepappersmarknadsrätt, Straffrätt, Penningtvättsdirektiv, Penningtvättslagen, EU, Globalisering, Mellanstatlig institution, Compliance Function, Compliance Risk, Comparative Law, Fiscal Law, Financial Market, Financial Crisis, Lehman Brothers, Financial Services Action Plan (FSAP), Banking Law, The Basel Committee, European Banking Authority (EBA), Criminal Law, Money Laundering Directive, Financial Action Task Force (FATF), Anti-Money Laundering (AML), Customer Due Diligence (CDD), Countering the Financing of Terrorism (CFT), Know Your Customer (KYC), Politically Exposed Persons (PEPs), Globalisation, Intergovernmental Institutions, The London Whale Case
language
Swedish
id
8523005
date added to LUP
2016-02-15 11:19:09
date last changed
2016-05-27 09:10:31
@misc{8523005,
  abstract     = {Financial markets have a central role in a well-working society and a bank has a central role on a well-functioned financial market. The characteristic of a bank’s business contributes to the financial ecosystem and promotes stability on the financial market. The society is undeniably becoming more and more globalised. This, combined with a constant technical development, has continuously led to the development of financial instruments and markets. This results in great opportunities but also great risks for financial markets. One of these risks is the compliance risk, which is a type of operational risk. The compliance risk may be understood as:

”The expression ’compliance risk’ is defined […] as the risk of legal or regulatory sanctions, material financial loss, or loss to reputation a bank may suffer as a result of its failure to comply with laws, regulations, rules, related self-regulatory organisation standards, and codes of conduct applicable to its banking activities (together, ’compliance laws, rules and standards’)”. (The Basel Committee in Compliance and the compliance function, s. 7, 3 §).

Throughout the years, financial markets around the world have been affected by numerous disturbances causing instability on financial markets. This has led to devastating consequences for the financial markets, its actors, as well as for the society as a whole. However, on the other hand, the occurrence of financial crises, does also create opportunities for necessary changes. For example, the Basel Committee was established by the end of the 1970s and upholds financial stability at financial markets, the Financial Action Task Force was established in the late 1980s and promotes the work to prevent money laundering and terrorist financing. These intergovernmental institutions are today providing guidance within each sector.

Recent examples on such financial crises are the large bank crises in Sweden at the beginning of the 1990s and the global financial crisis which inter alia led to the collapse of Lehman Brothers in 2008. These crises have resulted in an intense work with developing new regulations for financial markets. Since 2008, efforts at the international level have mainly focused on developing a common ambition of a more integrated legislation from the European Union. New intergovernmental institutions have been established and existing ones have been provided a larger influence. The ambition is that the intergovernmental efforts will result in the prevention of financial crises as well as prevention of money laundering and terrorist financing.

The effort to prevent money laundering and terrorist financing has also contributed to a more internationalised legislative work. The Fourth Money Laundering Directive has been adopted and it is expected to be implemented into Swedish legislation within the near future. The Directive was designed to reduce the risk of financial markets being affected by money laundering and terrorist financing, to develop the risk based approach and to initiate more detailed legislation regarding simplified customer due diligence.

Against the backdrop of this international legislative work for financial markets and the prevention of money laundering and terrorist financing, the term compliance has been developed. Today, it is necessary for a bank to have a well-working compliance function.

The Banking and Financing Business Act (2004:297) was established as a reaction to the large bank crises in Sweden. The implementation of this Act resulted in an increased authority of Finansinspektionen concerning supervision. Based on this, it is today Finansinspektionen which at a national level is the inspection authority for the financial market, and which establishes the prerequisites and expectations of how a compliance function is to be structured within a bank. This has been issued through Finansinspektionen’s general guidelines (FFFS 2005:1) regarding governance and control of financial undertakings. A bank should apply these general guidelines to be able to satisfy the rules regarding risk management in Chapter 6, Section 2 of the Banking and Financing Business Act (2004:297).

There are different opinions regarding Finansinspektionen’s supervision work as such and there are different opinions on whether the directions and the practical guidelines are inadequate or not. Hence, responsibility is given to practitioners to spend an increasing level of resources to structure their own compliance function since the banks are exposed to numerous risks. These compliance risks, if realised, will result in high costs and possibly large losses. However, if these risks, are transformed into opportunities, the bank sector will benefit from positive synergy effects and enhanced market credibility. If all practitioners apply this ambition in a reliable, reassuring and preventive way, the financial industry as a whole will benefit from the enhanced credibility. Viewed from a more long-term perspective, criminological purposes may even be fulfilled.

The compliance function may be structured in different ways depending on several conditions, which this thesis aims to examine. Due to a lack of national guidance and guidelines, practitioners may apply international conditions to succeed with building a solid structure of the compliance function. An important document to consider is the Compliance and the compliance function by The Basel Committee, which contains best practice for banks. An additional approach to learn how the compliance function shall be structured is to consider exemplifying practice nationally and internationally. These practices indicate when and in what manner compliance risks are realised and may be conversely interpreted as an illustration of expectations on a bank. A fundamental pre-requisite to succeed with the work is to allocate sufficient amount of resources to handle this constant growing opportunity.},
  author       = {Käll, Pierre Johan},
  keyword      = {Komparativ rätt,Intern styrning och kontroll,Compliancerisk,Självreglering,Compliancefunktion,Regelefterlevnad,Compliance,Finansmarknadsrätt,Finansrätt,Finansmarknad,Finanskris,Finansinspektionen,FFFS 2005:1,Bankrätt,Baselkommittén,Kapitaltäckningsreglerna,Systemrisk,Sveriges riksbank,RIX,Den stora bankkrisen i Sverige,Den globala finanskrisen,FI Dnr-1784,Värdepappersmarknadsrätt,Straffrätt,Penningtvättsdirektiv,Penningtvättslagen,EU,Globalisering,Mellanstatlig institution,Compliance Function,Compliance Risk,Comparative Law,Fiscal Law,Financial Market,Financial Crisis,Lehman Brothers,Financial Services Action Plan (FSAP),Banking Law,The Basel Committee,European Banking Authority (EBA),Criminal Law,Money Laundering Directive,Financial Action Task Force (FATF),Anti-Money Laundering (AML),Customer Due Diligence (CDD),Countering the Financing of Terrorism (CFT),Know Your Customer (KYC),Politically Exposed Persons (PEPs),Globalisation,Intergovernmental Institutions,The London Whale Case},
  language     = {swe},
  note         = {Student Paper},
  title        = {Compliance - En gränsöverskridande undersökning i finansmarknadsrätt, bankrätt, värdepappersmarknadsrätt och straffrätt},
  year         = {2015},
}