Eastern Caribbean Central Bank 2024-2025 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2024 - 2025

Organisational Effectiveness and Development

Table II - ECCB Risk Maturity Model

Compliance The Compliance function is a key component of the Bank’s second line of defense. At a minimum, the compliance function will seek to ensure that the operations of the Bank incorporate: 1. An alignment and adherence to the applicable policies, laws and regulations (internal and external) in keeping with regional and international best practices; 2. A Risk-Based Approach in line with the approved risk appetite to identify, assess and mitigate compliance risks; 3. Continuous and up-to-date training and awareness across the bank aiming to build and foster a strong culture of compliance; and

4. Development and documentation of adequate procedures in alignment with the Compliance Management Framework Policy. During the financial year, the Bank advanced the implementation of the ECCB Compliance Management System, which includes the development and implementation of a Policy Management function. The Bank utilises an electronic system to register, track, monitor and manage all policies and contracts. This will also include compliance to contract renewal, performance assessment and review periods to prevent non-compliance to contract terms and conditions.

61