Compliance and AML

The Bank has established an independent Group-wide Compliance, Anti Money Laundering (AML) and Fraud Management Function, which reports directly to the Board Audit and Compliance Committee, in line with Basel Committee principles and applicable regulatory and statutory requirements. The function comprises four core sub functions: Financial Crime (AML), Regulatory Compliance, Compliance Assurance and Fraud Management.  Together, anti-money laundering and fraud management functions operate under an integrated group-wide Fraud and Anti Money Laundering (FRAML) framework, designed to strengthen financial crime prevention, regulatory adherence, and governance oversight across the Group. The Compliance, AML and Fraud Management function serves as the central point of reference for all regulatory compliance matters, ensuring alignment with applicable laws, regulations, supervisory expectations, and international best practices. The Bank remains committed to continuously strengthening its compliance culture and control environment across all activities.

Regulatory Compliance and Assurance is a dynamic, ongoing process. The Bank acknowledges its responsibilities in observing all regulatory provisions and international standards, undertaking regular compliance reviews, testing, and assurance activities to ensure sustained adherence. Compliance and AML activities are carried out according to an annual, risk-based plan reviewed and approved by the Board Audit and Compliance Committee. This plan includes regulatory compliance monitoring, thematic reviews, compliance testing, and assurance activities, creating a structured and proactive compliance framework across the Group.

Regarding Anti Money Laundering and Combating Financial Crime, the Bank is fully committed to combating money laundering, terrorism financing, and proliferation financing, in alignment with all regulatory and legal requirements and global best practices in all jurisdictions of operation. We maintain a comprehensive group-wide AML program, which features risk-based and automated transaction monitoring, customer due diligence and enhanced due diligence, robust sanctions framework, record keeping and regulatory reporting mechanisms, suspicious transaction reporting procedures, a designated Money Laundering Reporting Officer (MLRO) supported by diligent and skilled AML resources, and ongoing training and awareness for all employees. The regulatory and legal provisions are reflected within a Group AML Policy Framework, reviewed annually and approved by the Board of Directors to maintain alignment with evolving regulatory expectations and emerging financial crime risks.

For Fraud Risk Management, the Bank operates a dedicated Fraud Reporting and Management function that is responsible for monitoring, responding to, and preventing fraud. This is supported by advanced systems, 24/7 monitoring team, thorough fraud investigations procedures, defined internal escalation mechanism, detailed analytics and regulatory reporting, and active liaison with competent authorities. Fraud risk management is an integral part of our broader FRAML framework, further enhancing financial crime risk mitigation.

Group and cross-border oversight is maintained through designated Compliance and Financial Crime functions in our overseas branches in India and Kuwait, with functional reporting lines to Group Compliance. This ensures consistent implementation of local and group standards. Additionally, our subsidiary CrediMax maintains a dedicated Compliance and AML function, operating within BBK’s group-wide framework and is subject to oversight by Head Office, as per established robust governance framework.

The function undergoes periodic independent review, including assessments by Internal Audit, regulatory bodies, external auditors, and independent third-party reviewers. These reviews provide assurance on the adequacy and effectiveness of our compliance, AML, and fraud control framework, supporting continuous enhancement of governance and controls.