Multiple listed banks' chief compliance officers are rapidly taking their positions

Our reporter Yang Jie

Recently, several banks have been intensively advancing the hiring process for Chief Compliance Officers. On February 24, Chongqing Bank announced the resolution of its 20th meeting of the seventh board of directors, approving the appointment of Wang Weili as the bank’s Chief Compliance Officer, pending approval from the Chongqing Regulatory Bureau of the China Banking and Insurance Regulatory Commission.

Public information shows that Wang Weili is currently a member of the Party Committee, Vice President, and Chief Risk Officer of Chongqing Bank. He has previously served as Assistant Branch Manager, Vice President, Acting Vice President, and President of the Bishan Branch, as well as Branch Manager of the Cultural Palace Branch, General Manager of the Administrative Department, and General Manager of the Internal Control and Compliance Department.

A leader with both frontline practical experience and management expertise at the head office being appointed as Chief Compliance Officer aligns with regulatory policy directions. On December 27, 2024, the China Banking and Insurance Regulatory Commission issued the “Regulations on Compliance Management of Financial Institutions” (hereinafter referred to as the “Regulations”), which stipulate that financial institutions should establish a Chief Compliance Officer at their headquarters. The Chief Compliance Officer is a senior management position, directly reporting to the Chairman and President (General Manager), and responsible to the Board of Directors. In principle, compliance officers should be established at provincial or first-level branches. The Regulations will take effect on March 1, 2025, with a one-year transition period.

As the transition period approaches, many listed banks have recently announced their Chief Compliance Officers. For example, on February 13, Agricultural Bank of China announced that its Board of Directors approved the appointment of Wang Zhiheng as the bank’s Chief Compliance Officer, effective from the date of the Board’s approval. On the same day, Bank of China announced the appointment of Zhang Hui as its Chief Compliance Officer, who will assume the role from the date approved by the Board. Additionally, banks such as China Everbright Bank, Shanghai Bank, and Qilu Bank have also confirmed their Chief Compliance Officer selections in February.

Compliance management is a key element for the sound operation and high-quality development of financial institutions. A relevant official from the China Financial Regulatory Authority stated that the Regulations aim to guide financial institutions in establishing a comprehensive compliance management system that spans across all levels and areas, embedding compliance into the entire process of development and decision-making, shifting from “passive regulatory compliance” to “proactive compliance governance.”

Yang Haiping, a researcher at the Shanghai Institute of Finance and Law, told Securities Daily that establishing a Chief Compliance Officer in commercial banks helps elevate the status of compliance management within the management system, enhances its independence and authority, and will play a positive role in adapting to stricter regulatory environments, improving compliance effectiveness, promoting compliant operations, and risk prevention in complex business conditions.

“Establishing a Chief Compliance Officer is a significant institutional reform in the history of financial regulation,” said Tian Lihui, a finance professor at Nankai University, in an interview with Securities Daily. He explained that this reform achieves three “leaps”: first, from decentralized governance to centralized authority, with the Chief Compliance Officer entering the senior management team and reporting directly to the Board, breaking the traditional reliance of compliance on business lines; second, from passive compliance to proactive governance, integrating compliance requirements into strategic decisions and business processes upfront; third, from a cost center to a value center, reducing penalties and reputational risks through building a compliance defense line, thus safeguarding the bank’s long-term value.

“For banks, the role of the Chief Compliance Officer will reshape corporate governance fundamentals. In the short term, stricter compliance reviews may prolong decision-making processes and cause transitional pains, but in the long run, it will promote a dynamic balance between business innovation and compliance bottom lines, making prudent management a core competitive advantage,” Tian Lihui added.

According to Yang Haiping, for commercial banks, improving compliance management also requires focusing on key areas while strengthening the overall system: first, adhering to the principle that “compliance starts from senior management,” targeting critical fields and links, and strengthening supervision; second, implementing precise accountability and penalties, and fostering a compliance culture; third, optimizing performance evaluation systems to shift focus from business to compliance; and fourth, combining human and technological defenses, utilizing information systems to enhance compliance management levels.