Compliance & Operational Risk
Compliance and Operational Risk is a core part of AIIB culture and is the responsibility of all Bank Personnel.
Role of the Compliance and Operational Risk
The Compliance and Operational Risk team supports a culture based on the Bank’s values and professional conduct. It is responsible for efficient management and oversight of the Bank’s exposure to compliance and operational risk and provides advice to the Chief Risk Officer and Senior Management on how the Bank can effectively manage such risks.
Compliance and Operational Risk Activities
To carry out its mandate, the Compliance and Operational Risk team is responsible for the management of compliance risks to ensure adherence to international standards set by the Financial Action Task Force (FATF), including compliance with:
1) Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT)
2) Countering Proliferation Financing (CPF) in accordance with FATF recommendations and relevant United Nations Security Council Resolutions
3) Economic and trade sanctions
4) Tax Transparency requirements.
In 2023, AIIB joined peer institutions as an Observer to the OECD Global Forum on Tax Transparency, reinforcing its commitment to international best practices.
The Compliance and Operational Risk team also has oversight over operational risk activities across the Bank. The Bank’s operational risk framework provides a structured approach to managing operational risk and seeks to apply consistent standards and techniques for evaluating risks across the Bank.
Organization
Compliance and Operational Risk is a second line of defense function within the Risk Management Department. The Head of Compliance and Operational Risk, under the oversight of the Chief Risk Officer, is responsible for this function and has access to the Risk Committee and Audit and Risk Committee.
