As of October 1, a new, enhanced surveillance framework for the bankswith the aim of more effective management hazard related to money laundering, lending and liabilities of board members. The new arrangements are all banks and are in line with the European Banking Authority guidelines and replace the current regulatory framework implemented for almost a decade.
The new regime enhances the operation of the Risk Control and Management Committees, making them mandatory for all banks. The Bank of Greece, in cooperation with the Hellenic Bank Association, has formed this stricter framework of internal governance, in order to further shield the Greek banking system.
In particular, rules are established to prevent and prevent cases of conflict of interest relating to the members of the Board of Directors of Banks and their staff. Among other things, the new stricter rules aim to identify such risks in lending and carrying out other transactions (leasing, real estate, guarantees) to board members and other persons linked to them.
As noted, in the new framework, banks through the Internal Audit and Risk Management Committees should ensure that decisions concerning the granting loans or the conclusion of other transactions with members of the Board of Directors or with persons linked to themare obtained in objective terms without unjustified influence, as in all other cases of their daily operation in accordance with prudent management rules.
In fact, these members of the Board of Directors who receive credits or the persons linked to them should not participate in the decision -making process for these credits.
In particular Additional security valves for accounts related to credit lines (overdrafts, etc.) to the members of the BoD. In cases where credit to a member of the Board of Directors exceeds 200,000 euros, the credit institution is required to provide specific information to the Bank of Greece which will concern not only the amount of credit but also the amount of outstanding bank credit to the same person
New Supervisory Rules also provide for the establishment of a procedure for reporting infringements by bank staff. These reports will be made either through the operation of a regulatory compliance, the internal inspection, or through a special independent reference line (whistleblowing) required to form the credit institution. And this, provided that the protection of personal data, both of the employee who mentions the infringement and the person who is allegedly responsible for the infringement is responsible.
The Risk Management Committee will operate extraordinary and in any case every quarter. The purpose is to identify financial and non -risk. Among other things, these are credit risks, market risks, liquidity, concentration, technology, reputation, legal nature, money laundering, terrorism financing and other criminal activities, social, environmental and strategic.