Research On The Improvement Of Internal Control Process Over Anti-financial Crime-A Case Based On The H Bank Group

In recent years, the international commercial banks have caused huge risks and upheavals to international financial markets and to some countries because of internal control gaps. So, fighting against financial crimes with internal control gaps in transnational banks is drawing global attention. Internal control is an important theory in company management, a self-discipline rule and a key management factor. Commercial bank internal control is a management and control process fighting bank risks with modern management theory and methods, and also a control system established to realize management goals.In order to discover the influence of commercial bank internal control to financial crimes, this thesis takes H bank as a research target, analyzes its internal control process about fighting financial crimes, combines relevant commercial bank internal control theory to case analysis, focuses on a series of problems and gaps of H bank during the past a few years, thus provides some reference to those commercial banks doing transnational business in our country.This thesis is composed of six parts: introduction, theory review, case description, case analysis, suggestions and conclusion. Through theory review, case study, and thorough analysis of H bank, we will find out shortages of its internal control process include: 1. Incomplete control environment leads subsidiaries not under control; 2. Incomprehensive Risk Assessment in daily operation increases financial crime risk including Incomprehensive risk assessment failures to filter high risk business and customers; 3. Inconsistence control environment brings H bank group management problem including branch & Services center use different standers in process, policy and regulatory; and different Standards apply to anti-Financial Crime in different countries; 4. Activities control failures including High operational risk caused by staff's control issues in service center; and poor data management and records management caused customer private data leakage; then the author propose suggestions from the aspects of internal control theories by 1. Conducting comprehensive risk assessment for acquisition by due diligence of acquisition; 2. Improve Enterprise Risk Management Framework in the group by Set up a comprehensive risk assessment structure for managing operational risk; and manage active risk, create and promote risk culture across the group; 3. Improve activities control for financial crime risk prevention by improve the business data and records management; also provide some reference to those commercial banks doing transnational business in our country.