Regulatory Compliance
Regulatory compliance tests your knowledge of the legal framework and the compliance function: BAFIA 2073, the NRB Act 2058, the Banking Offence and Punishment Act 2064, NRB directives, corporate governance, fit-and-proper criteria, statutory reporting, and supervisory consequences.
Core rules and concepts
- The board approves the compliance policy and receives compliance reports; the compliance function identifies, advises, monitors, and reports. It does not replace internal audit.
- Maintain a compliance calendar for NRB returns, prudential ratios, and licensing conditions. Late or inaccurate filing is itself a breach.
- Keep a breach register with root cause, remediation owner, and deadline. Material breaches go to the board risk committee and, where required, to NRB.
- Fit-and-proper assessment applies to directors and senior management; conflicts of interest must be disclosed and managed.
- Statutory audit and NRB inspection findings require action plans, not just replies.
Worked example
A bank files a monthly NRB return three days late. The compliance officer logs the breach, identifies the cause as an unresolved data feed, and assigns a fix with a deadline. The board risk committee is informed because the return is prudential. NRB may impose a penalty; the bank’s response should show remediation, not blame. Concealing the delay would turn a reporting lapse into a governance failure.
Traps
Equating compliance with internal audit, self-judging materiality to avoid reporting, ignoring vendor and outsourcing compliance, and treating NRB directives as optional guidance.