Compliance expert warns firms to be audit-ready
A compliance expert has urged regulated firms to be ready for an audit by updating their compliance reporting procedures or risk facing fines.
Martin Cheek, managing director of digital compliance firm SmartSearch, warned that inefficient, legacy reporting processes are undermining the productivity of firms. This leaves them exposed to unnecessary downtime, fines and reputational damage in the event of a breach of anti-money laundering or sanctions regulations.
“Firms are required to regularly update their compliance policies and procedures and part of that process is to demonstrate a robust and up-to-date audit trail, giving a comprehensive overview of their adherence to regulatory guidelines,” said Cheek.
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“Breaching the rules unintentionally is not a defence. If the regulator knocks on your door, not having a proper audit trail is inviting a fine and reputational damage.
“Being audit-ready also minimises the considerable – and costly – management time which comes when a potential breach is being investigated.
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“Being audit-ready doesn’t just save time and money, it also safeguards reputations and avoids the hefty fines and criminal prosecutions that come with compliance breaches.”
Cheek’s comments come ahead of the next consumer duty milestone on 30 April.
The new consumer duty requires all firms to demonstrate that they have placed consumer care at the heart of their business models. This includes proof that their anti money-laundering checks are up to date, one of the services provided by SmartSearch.
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