Regulatory Alerts2018-06-17
Supervision of Overseas Branches
The Supervisor of Banks issued directives requiring banking corporations to implement comprehensive group-level oversight and risk management frameworks for their overseas branches. The regulations mandate that Boards of Directors and Senior Management establish clear strategies, ensure adequate staffing and resources, and maintain independent central units to aggregate and analyze branch performance and risks. Specific requirements include rigorous compliance with anti-money laundering standards, regular external audits of high-risk areas, and the closure of branches that cannot be managed effectively within the group's risk appetite.
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