The Role and Effectiveness of Internal Compliance in Finnish Banking : Challenges and Best Practices

Abstract

The main aim of the study is to assess the effectiveness of compliance in Finnish banking: Practices and challenges with focus to identify the challenges and propose the best practices for the enhanced performance. Regulatory compliance in the banking is quite critical for the integrity of financial system, preventing the fraud and protect the consumer. In Finland, the EU regulatory framework and European Union shape the member of European Union and Eurozone, compliance in the banking including the directives like PSD2 and AMLD, which is Anti-money Laundering directive The study may include the qualitative methodology and quantitative that may employee secondary data analysis. The research may involve the systematic review of the relevant academic literature, Document of regulatory with industry report and case studies of Finnish banks. Data will be gathered and collected from the reputable sources that may include academic databases, industry publication and regulatory websites. The case starts with S-Pankki reviewing their need to correct numerous operational shortcomings involving maintaining current customer profiles. As a personal experience, automatic service denials, compliance breaches and missed business opportunities result from outdated financial profiles, that is, student status in the system that has not changed when income has, for example. The problem identified by the core issue is a lack of systematic, periodic customer profile updates.