JAIBP Stage III cheat sheet

Banking Laws, Regulations and Ethics

• Banking regulation is built on licensing, capital adequacy, prudential limits, and conduct rules; the regulator's supervisory tools include on-site inspection, off-site returns, and enforcement action.

• Anti-money laundering framework: customer due diligence, ongoing monitoring, suspicious transaction reporting to the financial intelligence unit, record retention, and a designated compliance officer.

• Confidentiality of customer information is a core duty; disclosure is permitted only where law requires it, the customer consents, or a regulator's statutory power compels it, and each disclosure is logged.

• Conflicts of interest are managed by disclosure, recusal, and information barriers; staff must not use inside knowledge of a client's affairs for personal or related-party benefit.

• Fit and proper criteria for directors and senior management cover integrity, competence, financial soundness, and absence of disqualification; material changes require regulatory notification or approval.

• Complaint handling requires a documented escalation path, acknowledgement within the regulator's timeline, and final resolution within the prescribed maximum period, with records available for inspection.

• Related-party transactions must be on arm's-length terms, disclosed, and approved under the board's policy; exposure limits to connected parties are capped as a percentage of capital.

• Whistleblowing channels must allow confidential reporting of misconduct, protect the reporter from retaliation, and route serious cases to the audit committee or board rather than line management.