Stricter regulation good, but impacts on business

AS the volume of new regulation increases and regulators become stricter, effectively managing Standard Bank Namibia’s ability to remain compliant places pressure on their systems, processes and people, and increases the amount of time spent on compliance activities.

However, regulatory change can also provide the opportunity to improve their services and be the first to market new and innovative products and services and risk mitigation strategies, which could potentially translate into competitive advantages.

These are some of the issues contained in Standard Bank Namibia’s 2016 Sustainability Report, which was launched in Windhoek this week.

A sustainability report is a report published by a company or organisation about the economic, environmental and social impacts caused by its everyday activities. It also presents the organisation’s values and governance model, and demonstrates the link between its strategy and its commitment to a sustainable global economy.

According to the report for the year ended 31 December 2015, no significant fines or sanctions were incurred by Standard Bank in 2015 due to noncompliance.

During the year, the bank continued to strengthen compliance awareness in the bank through training interventions and as at December 2015, 86% of Standard bank’s workforce had completed their compliance training.

“Facetoface training is provided to nonclerical employees, some of whom do not have access to the online training platform. In addition to training, we conduct general compliance awareness programmes for employees,” reads the report which was launched by the bank’s chief executive officer, Vetumbuavi Mungunda.

Several new regulatory enactments were introduced during the reporting year, requiring investment in three infrastructure projects which will help them to make better compliance decisions.

“Continuous and constructive engagement is a key focus area for managing regulatory change, not only to understand policy imperatives that drive regulatory changes, but to proactively communicate potential challenges in implementing the processes required for compliance,” the report said.

Proactive engagements with regulators also facilitate solutions which benefit all Standard Bank’s stakeholders, particularly where regulatory change impacts on the bank’s daytoday business procedures, and therefore client experience.

The report further states that the bank’s memberships in industry associations provide the opportunity to interact on a range of issues, enabling it to contribute its views on emerging regulatory matters through industrywide submissions to regulators.

The bank’s compliance unit manages the bank’s relationship with its primary regulators, the Bank of Namibia and the Financial Intelligence Centre.

“All communication with regulators and regulatory supervisors takes place within a disciplined framework, and by designated employees.”

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