How to Get a Career in Banking Compliance: A Comprehensive Guide

Introduction to Banking Compliance

Banking compliance is a critical aspect of the financial industry, ensuring that all operations adhere to regulatory requirements and ethical standards. This field is increasingly important as the financial world becomes more complex and regulated. This guide will help you navigate the process of entering a career in banking compliance, including education, experience, and certification requirements.

Part 1: Building a Strong Foundation

1. Getting an Education and Experience

To become a bank compliance officer, you need a minimum of an undergraduate degree, although no specific major is required. Common fields include accounting, business administration, and finance. Key courses should cover:

Mathematics Accounting Finance Business Administration Statistics Economics

Internships: Engaging in internships at banks or financial institutions can provide practical skills and knowledge, enhancing your resume. Contact professors, the school's career center, and industry-specific organizations to explore internship opportunities. Consider local community banks and credit unions, as compliance roles are prevalent there.

Job Places: Banks, credit unions, retail banks, private investment banks, and international banks are all potential employers for compliance officers. Start your job search after obtaining a degree.

Skills and Experience: Begin as an assistant in the compliance department to gain hands-on experience. Identify key regulatory areas and focus on communication skills, as relaying complex regulations and identifying non-compliance is crucial.

Continuing Education: The legal and regulatory landscape in banking is constantly evolving. Complete the required 80 hours of compliance training approved by the Institute of Certified Bankers (ICB). Options include courses from the American Bankers Association (ABA) or the American Institute of Banking (AIB).

Part 2: Ensuring Compliance

2. Stay Informed about Regulations

Banks must stay current with all banking regulations. Use resources like the ABA Compliance Email Bulletin, continuing education courses, and individual research to stay informed. Compliance officers must have a broad understanding of banking regulations and develop area-specific expertise relevant to the bank's operations.

3. Help Banks Develop Best Practices

After understanding the regulations, compliance officers help employees implement them effectively. This involves working with managers to create best practices and training staff on these practices. For example, if a new regulation on anti-money laundering is passed, compliance officers help the bank determine and implement new procedures.

Review Records and Practices: Ensure transparency by enforcing good record-keeping and information sharing. Review records related to fair lending, anti-money laundering, investments, and other areas to confirm that all regulations are followed.

4. Report Problems and Abuse

A key responsibility of compliance officers is recognizing when regulations are not being followed and reporting any issues to regulatory bodies. Work with managers to correct problems identified and be prepared to report fraud, embezzlement, and other violations.

Part 3: Success as a Compliance Officer

1. Get Certified

While there is no mandatory certification, obtaining one enhances job prospects. The Certified Regulatory Compliance Manager (CRCM) is a sought-after credential. Required steps include three years of banking experience and 80 hours of approved compliance training. Apply through certifying agencies like the ABA, NAFCU, Center for Financial Training (CFT), IABFM, or Association of Certified Fraud Examiners (ACFE).

2. Practice Ethics and Accountability

Observe the highest ethical standards and be accountable for your actions. This includes monitoring activities, exposing suspicious activity, ensuring compliance with regulatory standards, helping determine best practices, and answering inquiries from regulatory bodies.

3. Join a Professional Organization

Join professional organizations like the American Bankers Association (ABA) or AIB to network, access job opportunities, and participate in conferences. Active involvement in these organizations can enhance your career prospects.

4. Maintain Certification

Continuing education is crucial to stay current. Certified compliance officers must take 60 hours of compliance-related courses every three years. Typical courses include topics like credit card regulations, Fair Credit Reporting Act, digital compliance, privacy, and more.

5. Consider Advanced Degrees

While a bachelor's degree is sufficient, some seek advanced degrees in areas like business ethics, compliance, leadership, quantitative methods, finance management, human resources, or law to enhance their career opportunities.

Conclusion

Becoming a bank compliance officer requires a combination of education, experience, and continuous learning. By following the steps outlined in this guide, you can prepare yourself for a rewarding career in an increasingly regulated financial sector.