Compliance : At the Heart of Financial Services Industry

Compliance risk is becoming one of the key risks associated with finance business. The continuous development of financial products, technological advancement, blurred boundaries of financial services and the rapidly evolving regulatory frameworks have emphasized the importance to have a robust compliance function in place in financial institutions. Cases of non-compliance and reputation risks faced by some domestic financial institutions in the recent past compel us to revisit compliance frameworks available in the financial system of Sri Lanka. This article will accordingly shed light on key elements of an effective compliance function for financial institutions