The Role of a Compliance Manager in Banking

The traditional role of the compliance function in banking of checking and monitoring operational activities is moving away from a “policing” approach more towards an advisory role.
However, a bank's senior leadership must implement adequate and functional risk controls in operating activities to prevent losses and ensure that employees abide by laws of the land when performing tasks. Today, the compliance manager is often involved in executing compliance controls over daily business transactions as well as providing ongoing compliance oversight. He needs to be both proactive and reactive - helping to ensure that new business is compliant as well as monitoring existing business.

Compliance job roles are required in all divisions of banking at all senior levels: investment, retail, corporate and business banking, credit and loans. There are three main types of risk which must be managed:
Compliance risk: the risk of direct financial loss from failure to meet laws, regulations, internal standards and policies and the expectations of key stakeholders.
Reputational risk: damage that can occur when business behaviour is viewed as inappropriate by stakeholders, whether regulators, customers, other market operators, or the public at large.
Regulatory risk: the risk of sanctions for breaching applicable laws and regulations and/or for not meeting regulatory expectations.

Salary packages in banking compliance are generous and the function has a growing future, providing a career path for aspiring compliance directors. At a senior level the responsibilities would include establishing and implementing a compliance framework and function for the Bank as well as monitoring the Bank’s business activities, sales practices, documents and marketing material, and clients’ statements to ensure compliance with local regulatory requirements.
Additionally, the compliance manager must communicate policy and procedure throughout the Bank and investigate and resolve problems in a timely fashion following established guidelines. One of the main objectives is to create awareness of risks to reputation and integrity and the consequences of regulations within business units.
A bank compliance manager usually has a bachelor's degree in a business-related field or regulatory management. A senior banking compliance manager typically holds a master's degree in business management.

On a personal level, a compliance manager must have good interpersonal skills and the ability to work in collaboration with team members and business partners, such as customers and suppliers. Part of his/her role is to achieve a level of cooperation and understanding internally so that the Bank is exposed minimally to the various types of risk. Recent events relating to collusion and price fixing have highlighted the role of compliance in the financial services industry.

Jobs for Graduates in Africa

Despite some media reports to the contrary, there are many openings for graduates in Africa.  If you have a degree from a recognized and accredited university, you are on your way to securing a position in line with your achievements.  It is important to prepare your CV professionally in line with best practice to ensure that your talents, skills and experience are showcased to your advantage. Highlight your particular area of expertise and accentuate your achievements with examples. 

The industry sectors that are always looking for graduates are oil-and-gas, finance and banking, telecommunications and mining.  In addition, industries such as retail clothing and textiles, fast moving consumer goods (FMCG) and warehousing, distribution and logistics are all becoming increasingly sophisticated in their operations and look for people with the right training and some experience.  People with specific I.T. and analytical skills attract a premium.  Employers can be the global giants or regional companies operating across 5 – 20 countries that are expanding into either new markets or new lines of business.  Look out for opportunities in food and beverages; wholesaling, distribution and marketing in countries that have a growing population, a stable political environment and an educated workforce.  Egypt, Kenya, Nigeria and Johannesburg are regional hubs where the major companies establish themselves to support other countries in North, East, West and Southern Africa respectively.           

The functional areas of engineering, construction, finance and I.T. are constantly looking for professionals in these areas. Especially sought after are people with solid qualifications in civil, mechanical and electrical engineering, telecommunications and computer connectivity as well as chartered and certified accountants.  There are always expat opportunities outside the main centers as well in the rural areas where oil exploration and mining is taking place. Graduates are required in all functions at all levels of experience,  working on one of the large projects in an established organization adds power to your CV and develops your experience further. Your future income levels will be enhanced by wider experience in other industries or related functions. There are lots of jobs for graduates in Africa.

Iron Ore Boom in Africa

China has declared its intention to dominate the iron ore mining industry in Africa. This was revealed recently in a speech by the chairman of the China Iron and Steel Association, Wu Xichun.  He said clearly that China wanted to be a big investor in the West African iron ore mines and import half of its iron ore from Chinese-owned mines elsewhere in the world.  China’s own iron ore is low-grade, unlike that of Australia and Brazil.

With construction in China at an all-time high, the country is embarking on a strategy to buy up vast tracts of under-explored and iron ore rich West Africa.  This is a direct challenge to Australia and Brazil’s dominance of the global iron ore market.  BHP Billiton, Vale and Rio Tinto (RTZ) are already embedded in West Africa.  China is intending to open at least 20 mines in the region spanning Liberia, Guinea, Sierra Leone, and the Cameroon by 2015. The economists agree that this could force iron ore prices to decline over the next five years. 

Australian miners are worried about the Chinese expansion program in African iron ore mining. Gabon has significant iron ore reserves in the north-east of the country, although infrastructure such as railways needs to be constructed in order to develop them. All the major global mining companies are undertaking advanced feasibility studies of the Belinga group of iron ore deposits there.  Competition for the Belinga deposits will be fierce. The mining boom is not only helping the majors but also iron ore juniors, thanks to China and India's insatiable demand for steel.

In South Africa, infrastructure has emerged as the key constraining factor to their participation in the African iron-ore boom. The Government has committed to work on a continental framework to extract greater value in the boom times and to expand SA ports and rail networks handling iron ore.     

Mining companies are well aware of the risks common to Africa, contract insecurity being one of the chief concerns, but these are not deterring investment.   "We are seeing a combination of logistical and political difficulties actually reducing and at the same time a slightly higher tolerance for these risks," said Rob Tyler, head of mining for West Africa at Coffey International, an Australian mining consultancy.     With reasonable growth in the iron ore and steel markets predicted for the foreseeable future, opportunities abound for mining companies that have a positive view on Africa. 

Sudan - its new beginnings

In January 2011 the people of Southern Sudan voted overwhelmingly to secede from the north and create a new State. Despite Sudan’s recent unstable and violent past, there seems to be some positive sentiments about future opportunities. Sudan’s population of approximately 39 million people is mostly resident in the North but the poorest people live in the South. The whole country is complex in terms of demographics, language, religion and ethnicity.

With a long, recent history of conflict and civil war, Southern Sudan, with government support must, with help from the international community, overcome its main obstacles to development which is the lack of infrastructure and essential services.

INFRASTRUCTURE

According to the Institute of Economic Affairs, approximately 27 million people in Sudan lack access to electricity, the country as a whole has a 31% electrification rate. Healthcare is basic, with overcrowded facilities lacking skilled staff. Sanitation is poor, as are the roads and power supplies. Russia, China and India are contributing to the uplifting of the infrastructure by investing billions in roads, pipelines, airports and health services as well as financing and support being given by the World Bank and the African Development Bank. The UK, with strong historical ties to Sudan, is investing in roads in rural areas, primary and secondary schools, teacher training centres, health care centres and other facilities to reduce insecurity and increase access to basic services.

OIL AND GAS

In 2009, according to the International Monetary Fund, oil represented over 90 percent of export earnings, playing a major role in the economy. The country's oil and gas reserves are vast. In the oil and gas sector, Sudan's North and South are discussing the possibility of sharing the ownership of oil and gas blocks on both sides of their borders when the country splits in July, said the head of the north's state-oil company, Sudapet. The majority of oil reserves and production in Sudan--about 500,000 barrels a day--are in the south, but the pipelines, refineries, and port of export are all in the north. So the two sides will have come to a new agreement on how to share oil revenues.

Other industry sectors, especially agriculture, food and beverages are expected to grow. SABMiller is investing an additional US$15 million in its operations in Juba, Southern Sudan to increase production capacity for carbonated water and soft drinks. But China is winning the foreign investors game hands down, there are more than 200 Chinese companies active in Sudan, now other countries will follow.