Report of the legal administrative body regarding the evaluation of the compliance function

NBB_2018_05 – 08 February 2018 Communication – P. 1/2 14 Berlaimont Boulevard – BE-1000 Brussels tel. +32 2 221 37 40 – fax +32 2 221 31 04 company number: 0203.201.340 Brussels RPM www.bnb.be

Communication
Brussels, 08 February 2018
Reference: NBB_2018_05 your contact:
Kurt Van Raemdonck tel. +32 2 221 53 39 – fax +32 2 221 31 04 kurt.vanraemdonck@nbb.be

Report of the legal administrative body regarding the evaluation of the compliance function

Scope
Credit institutions, brokerage firms, insurance undertakings and reinsurance undertakings

Summary/Objective
This communication draws the attention of institutions to the new obligation to transmit annually the report of the legal administrative body regarding the evaluation of the compliance function and defines the procedures for this transmission.

Madam, Sir,

The Law of 5 December 2017 containing various financial provisions has adapted the sectoral laws to clarify the responsibilities of the legal administrative body regarding compliance and to strengthen the control exercised over the compliance function.

In addition to defining and supervising the integrity policy, the legal administrative body is now required to transmit annually to the supervisory authority a report regarding the evaluation of the proper functioning of the compliance function 1. In this way, the legal administrative body accounts for its responsibilities regarding compliance: it ensures in particular that compliance risks are sufficiently detected and controlled.

Institutions are invited to submit this report to the Bank by the same date as that applicable to the transmission of the activity report of the compliance function. To this end, a line is added to the secure communication platform eCorporate.

A copy of this is sent to the commissioner(s), approved auditor(s) of your institution.

Please accept, Madam, Sir, the expression of my distinguished consideration.

Jan Smets

1 Article 36, paragraph 2, second paragraph, of the Law of 25 April 2014 regarding the status and control of credit institutions and brokerage firms, and Article 55, paragraph 2, second paragraph, of the Law of 13 March 2016 regarding the status and control of insurance or reinsurance undertakings.

Communication – P. 2/2 NBB_2018_05 – 08 February 2018 Governor