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.
