The legal nature of compliance and its archetypes in banking institutions

The paper is devoted to the study of the legal nature of compliance and the analysis of the main methods (archetypes) of its organization in modern banks. It is substantiated the necessity of compliance in a modern economic organization, which is explained by the importance of compliance with both law and ethical requirements for economic activity. It is provided the short etymological excursion on the reception of the term: from Latin to Ukrainian through English. According to the results of the generalization and systematization of scientific sources, it is identified and characterized special legal approaches to determining the essence of compliance, namely: procedural, functional, systemic and institutional. It is proved that, according to the procedural approach, the obligation to ensure compliance extends beyond professional activity; the functional approach emphasizes control and preventive measures; the systemic approach considers compliance as a link in the overall risk minimization mechanism; the institutional approach identifies this category with a special body of internal control. As a result of the critical analysis of individual lawyers’ views it is proposed an own definition, according to which it is appropriate to consider compliance as a state of conformity of all elements, processes and systems of the organization with current applicable norms of a legal, professional, technical, ethical, environmental nature, etc. It is presented the generalized overview of the international legal framework for the organization of compliance in banks, including the American COSO model, the recommendations of the Basel Committee on Banking Supervision of 1998 and 2005, the European directives CRD and CRD IV, and the regulations of the European Banking Authority. It is substantiated the allocation of four archetypes of the compliance service in a modern bank: legal-centric, risk-centric, monitoring-centric and independent. It is executed their comparative analysis, which proved the transitivity of modern views on the compliance service in a bank.