Since its inception, IBS practice international standards such KYC, Compliance, and anti-money laundering for all their products offerings in order to align Somalia banking system in line with the international banking system.

Compliance in financial industry usually act as internal police force, it is the entity that is responsible that financial institutions complies and adheres to the financial laws in that context, as well as the internal rules regulations, and systems of control that are imposed by the department itself for the staff to adhere Compliance section ensures that all activities carried out by the bank are been complied with the rules and regulations set by the legislators, local and international regulators.

Money laundering is the processing of funds made in carrying out criminal activities in order to disguise the illegal origin of the funds. It is a process undertaken by many criminal organizations (both large and small). There are three stages of Money laundering
a) The Initial or “Placement” Stage – In this stage the money launderer introduces the illegal profits into the financial system. This is done in various ways. The money launderer may break up large amounts of cash into smaller, less conspicuous amounts which are deposited into bank accounts or by purchasing cheques or bank bills which are deposited into bank accounts at a later date or at another location.
b) The Second or “Layering” Stage –Following the Placement Stage, the money launderer will convert the funds into another type of asset and/or move funds several times to distance them from the original type of asset and place in which they entered the financial system. This may be done by purchasing and selling investment instruments or by transferring funds between a series of bank accounts.
c) The Third or “Integration” Stage – In this stage the money launderer re-integrates the funds into the economy. This may be done through the purchase of real estate and luxury goods, gambling profits, or the establishment of an anonymous company.

KYC stands for Know your Customer, and it’s the process carried out by banks to identify and verify the identity of its clients KYC policy is important to IBS business to prevent fraud and money laundering and therefore, it is mandatory to all IBS Customers to match with strict IBS biometric KYC policy requirements

It’s also known as Bank identifier code (BIC), the code identifies specific banks globally, and it is used to send money to overseas banks. IBS is first commercial bank that has swift code and IBAN.

IBAN it is an acronym of International Bank Account Number, it is a unique number that is attached to all accounts in most of the European countries, it consists of a number that identifies the county the account belongs to, the account holder’s bank and the account number itself. Just like the SWIFT code, the IBAN makes it convenient to process international payments.

A correspondent Bank, is financial institution that will conducts services on behalf of another financial institution, that is providing services such as facilitating wire transfers, conducting business transactions, accept deposits, etc. it works through an agreement between by two banks, one foreign, the other one is the domestic bank.

The Bank has sound risk management policies and procedure, supported by enterprise wide risk management and internal control guide. Managing risk is a fundamental element of IBS objectives of consistent and sustainable performance over the long term. Risk Management group performs several critical activities including: Monitoring, measuring and controlling the credit, investment, market, operational, liquidity, reputation and legal risks to IBS; Managing capital and allocating resources towards activities with higher return and strategic growth; Monitoring Shari’ah Risk; Creating risk management culture through staff awareness.