Understanding Of The Three Principles Of Banking Exhibition Industry

The three principle of banking exhibition industry is mainly from "understanding your customers" (KYC).

And "understanding your business" and "due diligence" are actually for "understanding your customers".

So the main thing in the world is to "know your customers" and mention less about the three principles.

The principle of "understanding your customers" was put forward after the "9 / 11" incident, according to the international anti money laundering requirements.

After 2001, this principle has become the legal requirements of the United States, Britain, India and other countries.

In China, the principle of anti money laundering law passed in 2006 has not yet clearly put forward this principle. However, in the third article of the general rule, financial institutions should "take preventive and monitoring measures in accordance with the law, establish and improve the system of customer identification, customer identity information and paction records preservation system, large paction and suspicious paction reporting system".

This is interlinked with international practice: countries generally have detailed systems and requirements for identification of customers, and there are quantitative definitions and specific reporting systems and procedures for what pactions are large and suspicious, and stipulate that the information system of financial institutions should also meet the requirements of anti money laundering.

China is no exception. All kinds of regulations, guidelines and operation rules formulated by the anti money laundering law have all these regulatory requirements.

From the practice of the industry, banks usually implement the requirements of KYC and the regulatory requirements of materialization as the four major measures they can execute, namely, the policy of customers, the identification procedures of customers, paction supervision and risk management.

Besides,

The Regulatory Commission also attaches great importance to the importance of the KYC principle in the business of banks, emphasizing that the KYC principle should be applied not only to the field of anti money laundering, but also to a wider range of prudent risk management.

Therefore, as a principle, KYC can be implemented by concrete measures.

At present, the principle of KYC is extended to

There are debates on principle regulation and rule regulation in practice.

In the supervision of international banks, there are generally VS regulation and VS supervision.

The reason is simple: principles are not matched with rules, and principles cannot be implemented on the ground.

When it comes to regulatory principles, it is usually mentioned in Britain.

Britain has adopted the "Shuangfeng supervision" mode of prudent supervision and behavior supervision.

Under this mode, the financial Prudential Supervision Bureau (PRA) under the Bank of England is responsible for the maintenance.

Steady operation and stability of the financial system; and the financial behavior authority (FCA) is committed to achieving the goal of improving financial efficiency, ensuring the honest operation of the financial industry and protecting the rights and interests of financial consumers.

The regulatory framework of financial behavior supervision bureau can be divided into three categories: High Level Standards, PrudentialStandards and Business Standards, among which 11 principles (Principles forBusinesses) are put forward in high level standards.

However, in the regulatory Manual issued by the financial Prudential Supervision Bureau in June 2014, it claimed that the 11 principles were replaced by the 8 basic rules (theFundamental Rules) according to the social proposal. It also indicated that compared with the 11 principles, the 8 rules could clearly reflect the expectations of PRA and reflect the basic regulatory rules of PRA more accurately.

In fact, the core of the problem is not 11 principles or 8 rules, but the financial supervision in the UK has never been given several principles, and the supervision of these principles is based on continuous prudential supervision on the basis of risk management, including the market access standard, the establishment of supervision index system, the formulation of bank internal control rules, the training and appointment of bank compliance management officials and so on, while the principle is only an integral part of the whole system.

Those who expect the regulatory authorities to give only a few principles and rely on the "creative" implementation of institutions such as banks can achieve the aspirations of good governance, which is impossible in reality.