Pitsyk K. Organizational foundations of the legal category «compliance» in the banking system of Ukraine

DOI: 10.33098/2078-6670.2023.15.27.1.214-222

Purpose. The purpose of the article is to analyze the organizational foundations of the legal category «compliance» in the banking system of Ukraine. Methodology. The methodology includes a comprehensive analysis and a synthesis of available scientific and theoretical information. It is includes the formulation of relevant conclusions and recommendations. Such methods of scientific knowledge were used: terminological, functional, systemic-structural, logical-normative. Results: compliance is by the bank with legislative acts, market standards, as well as internal standards, procedures and documents of the bank. Compliance is a tool of the internal control system and an element of the bank’s corporate governance process. Scientific novelty. In the process of research is established that compliance-control is the foundation on which the security of business, its economic activity, the trust of customers and counterparties, business reputation and the success of doing business in the relevant market are based. In turn, compliance control, which is usually identified with the concept of compliance, should be understood as a complex system of supervision to ensure that the bank acts in accordance with its own rules (internal regulations), current legislation, principles of business ethics, in order to protect against compliance risks and the risk of violation functioning of the bank as a whole. The implementation of a qualitatively new approach to the management of functional risks through compliance control is expedient from the point of view of efficiency and profitability, since the introduction of complex management systems will avoid duplication of functions and ensure the full implementation of the tasks set to minimize the manifestation of risks, significantly reducing the bank’s operational costs.

Practical significance. The results of the research can be used in legislation and law-enforcement activities.

Key words: business relations, compliance, banking.

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