Is Compliance Training Important?

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Question:

Why is the compliance training important for employees? What would be a good way of explaining to a new employee how we conduct the training?

Answer:

Compliance training is only as important as the existence of the bank itself. Ownership and management must first support the compliance function. Compliance must ensure employees are trained on what has to be done. I prefer to tell them "why" as well. Often they have individual liability for their actions and they should be aware of this. If they are not trained, they, and the bank, are still accountable. If they don't do something because they were unaware, they suffer, as will the bank. If the problem is systemic and significant, the bank itself may suffer severely. The Riggs Bank is an example. Things were not done correctly for an extended period, with a lack of adequate direction on many fronts, and the bank suffered for it. They had a $25MM fine, executives and directors may be selected by the bank's regulator and the bank itself may be sold because it will be so difficult to recover from the risks it "accepted," consciously or not.

Training increases the consciousness and responsibility of all concerned.

First published on BankersOnline.com 9/20/04