By definition, Compliance is conformance to a rule, standard, or law. In the field of banking, Compliance is faced as a process by which an individual assures the bank that he or she is a reliable customer and complies with the statutory laws and regulations. This process, however, becomes exceedingly more difficult if there are 2 or more jurisdictions involved: when dealing with a non-resident Client, foreign banks impose strict requirements and procedures before an account can be opened.
In recent years (in response to the new international Anti-Money Laundering legislation) the banks have drastically expanded the list of questions which must be answered prior to opening a bank account.
Compliance is a time-consuming procedure as it requires the preparation of numerous documents to validate and prove the income source of an applicant.
Consequently, Compliance is commonly reduced to the process of opening bank accounts. Although it must be mentioned that Compliance is a much more complicated process surrounded by many other aspects. Additional difficulties are introduced by the new standards of the international exchange of information. For more detailed information on the new legislation trends, you can read the CRS section.