The compliance assurance function in light of the recommendation for internal defense lines in Hungary

Absztrakt

The internal defense lines are closely intertwined with the overall operation and security of financial organizations. Their effective functioning is critically important not only for the organization itself but also for maintaining economic stability and societal trust. Consequently, their establishment and maintenance are indispensable for the sustainable and secure operation of the financial sector. In my study, I aim to provide a descriptive overview of the compliance assurance function, including a brief review of the literature, legal regulations, and the National Bank of Hungary Recommendation No. 12/2022 (VIII. 11.), which pertains to the establishment and operation of internal defense lines, as well as the governance and control functions of financial organizations. The purpose of the study is to present in detail the rules formulated by the recommendation regarding the compliance assurance function, emphasizing the importance of internal defense lines for the stability and integrity of the financial sector.